LEARNING RESOURCES

There are more people buy in than buy out on the stock market. A bullish Stock Quote is called Bull Market. There are many factors that form a Bull Market, and the following are several aspects of factors:

(1)Economic Factor: Profits increased in a stock enterprise. The economy was in prosperity. Interest rates went down. Prosperous industries developed, and even a moderate inflation could promote stock market prices to go up.

(2)Political Factor: Government policies, the enactment of the laws and regulations, or any political event in mutation break-out might cause the stock prices to go up.

(3)Stock Market Factor: For example, releasing a buying spree, Short Selling made by speculators, or large amounts of purchases on stock made by the rich might cause the occurrence of a Bull Market.

Bullish Market refers to the investors who are optimistic about the stock market. The investors predicted the stock price will go up; thus, they bought the stocks, and waited for the stock to go up to a particular price to sell out for obtaining credit balances. In general, people usually consider the stock market with a long-term stock price of rising trend to be a Bullish Market. The prime feature of the variance in stock price of a Bullish Market is a serial action to fluctuate violently and edge down.

Investors predict that the price stock would go up; yet, personal capital was too limited to purchase large amounts of stocks. Therefore, a part of Margins was paid first, and then asked for financing from the bank to buy in. Waited until the stock prices to go up to a particular price, and sold it for obtaining credit balances.

Bullish indicates the information that activates the stock prices to go up. For example, the listed company turned out to be with good performance. The interest rate of banks went down. There were enough social funds. Banking debit capitals released. And market began to thrive as well as any information which is beneficial to stock prices to go up in respect of politics, economy, military, and foreign affairs.

Short Position means to act in a short position for a long period of time. Investors did not have a positive attitude towards long-term prospect for stock trend, and predicted that the stock price would continue to fall down. After borrowing stocks to sell out, investors would wait until the stock to go down for a long period of time so as to buy in for obtaining great profits.

Dead Position indicates to act in a dead position by holding to one’s belief. Investors had a positive attitude towards long-term prospect, and bought in stocks for prepared long-term holdings. Investors also set up their minds to keep the stocks until they are hatched to make a living. Investors would wait until the stock to go up to an ideal price, and then sold out.

Stock investors acted in a short position to sell out. Yet, the stock price didn’t go down that day, but go up. What investors acquired is to buy in at higher price; that is, Hanging Space.

Opening means the first transaction of a particular security made in security transaction, the Volume of each transaction is the Opening Price of that day. According to the rules and regulations set by Singapore Exchange (SGX), if a particular security cannot be made a deal within half an hour after the opening, the Opening Price of the day before yesterday would be set us the opening day of that day. Sometimes, a particular security cannot be concluded a transaction for days. Taiwan Stock Exchange Corporation (TWSE) would issue a guided pricing according to how customers viewed the pricing trend entrusted by such security trading to activate the transaction as the Opening Price. The trading securities listed at the first day are regarded as the Opening Price by the transferred of an average price or average offer price before the day being listed.

Offer refers to the highest purchase price and the lowest bids released by traders against a particular security at the security market in a particular period of time. Offer represents the highest price that both the traders willing to give. The purchase price is a pricing proposed by a particular Stock Exchange Corporation a buyer willing to buy in, and the bidding is the pricing a seller willing to sell out. The sequence of Offer is generally the purchase price first and the bidding next. There are four types of Offer in TWSE: one is shouting, two is gestures, three is filling out the log sheet to declare, and forth is entering electronic computer screens.

Low is also called the low price, which means the lowest transaction price of a particular security on that day of trading.

Stock release enterprise would need to verify its shareholder’s name list, hold a shareholder’s meeting, and preparing all kinds of jobs beforehand while releasing dividends. As a result, the enterprise set rules and regulations subject to the registered shareholder’s list of a particular day, and announced a period of time as the transferors of halted shareholders after this day. Within the period of halting transferors, dividends were still distributed to the registered old shareholders. Those who keep the new bought-in stocks could not share the right of receiving dividends, which is called Ex – Dividend. Meantime, the amount of dividends that is supposed to release shall be deducted from Bid Price and Ask Price of stocks during this period of time, which is called Ex - Dividend Transaction.

PER is the ratio between the market price of each share of a particular Common Stock of shares and the profits of each share. Therefore, it is also called stock price revenue ratio or market price profits ratio.

Its formula for calculation is:

The molecule in the above formula indicates the current market price of each share. The denominator can use the profits of the latest years or the predictable profits of the coming year or several years in the future. This ratio is the most basic and one of the most important indexes for estimating the value of Common Stocks. Generally speaking, it’s normal to keep such ratio ranged from 10-20. If it’s too small, it indicates that the stock price is too low and risky, which is worth-buying; if it’s too huge, it means that the stock price is too high and risky, which suggests that one shall be careful when purchasing, or maybe it’s highly recommended one shall holds both kinds of stocks at the same time. Yet, from the actual situation of stock, those stocks with big PER are mostly Hot Stocks. Stocks with a small PE Ratio can be a Cabinet Stocks, which may not be beneficial to investors if they buy in.

Sedan Chair is a speculative trading behavior on stock market to bid up manipulation of stock prices. Speculators predicted there would be Bullish or Bearish information to announce, and the stock price would rise and fall dramatically. Therefore, speculators soon bought or sold out their stocks. Until the information is announced, people would grab to buy in or grab to sell out, resulting in a situation on which the stock price went ups and downs. Speculators would then sell out or buy in at the time to obtain huge profits. Buying first and then selling out is called Multiple Sedan Chairs. Selling out and then buying in is called Empty Sedan Chair.

Speculators first cut out the stock price dramatically to a low price, making a large amount of penny stocks Investors (retail investors) panic and undersold their stocks. Then speculators would raise the stock price to take advantage of unduly profits.

PER is the ratio between the market price per share of Common Stock and the profits per share. Therefore, it is also called stock price revenue ratio or market price revenue ratio.

When investors made a bullish market while encountering a fallen stock price and the predicted stock price would be continue falling down, they would sell out all their stocks at hand. Investors would wait until the stock falls down for a quite a disparity, and then bought in to reduce the loss doing bullish market during the period of fallen stock price. Such trading behavior is called Special Treatment.

It indicates the trading risk one shall encounter while the stock trading is carried out. For example, investors predicted that the stock price would go up; yet, the stock price presented a downfall trend after bought in. Such phenomenon is called Hung Up. On the contrary, investors predicted that stock price would fall down and should out all the borrowed stocks by way of Short Selling. However, stock price continued to rise up. Such phenomenon is called Empty Hung Up.

It means bearish short selling. Those with stocks at hand on stock market all supposed that the stock would have a great downfall at that day. Thus many people grabbed to sell bearish Profit Taking to sell out stocks. However, the stock price that day did not have a dramatic downfall, which prevents people from buying in stocks at low price. Before stock exchange was come to an end, those who act in a short position could not but compete to follow up. Thus, it occurred that there is a drastic rise in closing price.

Stock market is affected by bearish information. When stock price fell to a particular price, those who act in short position would think that there is something profitable, and thus bought in stocks in large amounts. And the stock price would not fall down again. There is even a rebound trend occurred. When the stock began to fall down, the hurdle was called a support line.