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2020-06-06T16:09:29.000000Z
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Note
In primary market, issuers sell securities to investors and funds flow to the issuer of the securities from the purchaser.
In the secondary market, investors sell those securities to other and funds flow between traders.
The main trading site in secondary market - securities exchange
A market order instructs the broker or exchange to obtain the best price immediately available when filling the order.
Limit order conveys almost the specified price. Obtain the best price immediately available, but in no event accept a price higher than a specified limit price when buying or accept a price lower than a specified limit price when selling.
Quote-driven markets are the market where investors trade at prices quoted by dealers. Worldwide, most trading, other than in stocks, take place in quote-driven markets. Almost all bonds and currencies and most spot commodities trade in quote-driven markets.
Order-driven markets arrange trades using rules to match buy orders to sell orders. The orders may be submitted by customers or by dealers. Almost all exchanges use order-driven trading systems, and every automoted trading system is an order-driven system.
The third execution mechanism is the brokered market, in which brokers arrange trades among their clients. Brokers organize markets for instruments for which finding a buyer or a seller willing to trade is difficult because the instruments are unique and thus of interest only to a limited number of people or institutions.
All market participants, regardless of expertise or experience, may be subject to behavioral biases. There are four examples: Loss aversion, Over-confidence, Herding and Information cascade.
Investors dislike losses, more than they like comparable gains.
Investors place too much emphasis on their ability to process and interpret information about a security.
Trading occurs in clusters and is not necessarily driven by information.
Transmission of information from those acting first and whose decisions influence others.
即使你的选择并不是你喜欢的，你还是会跟随别人。
Not necessarily driven by information不完全由信息导致;
imitate authority 模仿权威（有信息来源）
A market anomaly may be present if a change in the price of an asset or security cannot directly be linked to current relevant information known in the market or to the released of new information into the market. The anomalies are placed into categories based on the research method that identified the anomaly.
Time-series anomalies were identified using time series of data.（自身数据）
Cross-sectional anomalies were identified based on analyzing a cross section of companies that differ on some key characteristics.（同一个时间节点，不同公司间的横向比较）
Theoretically, closed-end investment fund should trade at a price aproxiamtely equal to their net asset value(NAV) per share, however, on average, closed-end funds trade at a discount from NAV.
The unexpected part of the earnings announcement, or earings surpirse, is the portion of earnings that is unanticipated by investors and, according to the efficient market hypothesis, merits a price adjustment.
On average, the initial selling price is set too low and that the price increases dramatically on the first trading day.
In price weighting, the weight on each constituent security（成分股） is determined by dividing its price by the sum of all the prices of the constituent securities.
Equal weighting method assigns an equal weight to each constituent security at inception and rebalance the weight to ensure the equally weight of each securities.
In market-capitalization weighting, or value weighting, the weight on each constituent security is determined by dividing its market capitalization by the total market capitalization of all the securities of in the index.
Fundamental weighting attempts to address the disadvantages of market-capitalization weighting by using meausures of a company's size that are independent of its security price to determine the weight on each constituent security.
Analysis of the competitive environment with an emphasis on the implications of the environment for corporate strategy.
Barrier to entry refers to the ease with which new competitors can challenge incumbents and can be an important factor in determining the competitive environment of an industry.
Industry that are concentrated among a relatively small number of players often experience relatively less price competition.
Tight, or limited, capacity gives participants more pricing power as demand for the product or service exceeds supply, whereas overcapacity leads to price cutting and a very competitive environment as excess supply chases demand.
Stable market shares typically indicate less competitive industries; unstable market shares oftern indicate highly competitive industries that have limited pricing power.
Industries tend to evolve over time, and usually experience significant changes in the rate of growth and levels of profitability along the way. The five stages of an industry life-cycle model are embryonic, growth, shakeout, mature and decline.