Economics Blog

https://www.youtube.com/watch?v=QMRQD9wYC4A&list=RDQMRQD9wYC4A

DEFINITION OF 'EQUITY MARKET' The market in which shares are issued and traded, either through exchanges or over-the-counter markets. Also known as the stock market, it is one of the most vital areas of a market economy because it gives companies access to capital and investors a slice of ownership in a company with the potential to realize gains based on its future performance. INVESTOPEDIA EXPLAINS 'EQUITY MARKET' This market can be split into two main sectors: the primary and secondary market. The primary market is where new issues are first offered. Any subsequent trading takes place in the secondary market. Refine Your Financial Vocabulary Gain the  Financial Knowledge You Need to Succeed.  Investopedia’s FREE Term of the Day helps you gain a better understanding of all things financial with technical and easy-to-understand explanations.  Click here  to begin developing your financial language with this daily newsletter.

Intraday trading, often called simply "day trading," is the practice of buying and selling a financial product on the same day. It is often mentioned in reference to the stock market, but you can also day trade many other types of financial vehicles. It is a high-energy field that carries substantial risks but also offers considerable profit opportunities. Successful day traders can earn a good and consistent living.  Definition Day trading is a tightly regulated practice in the stock market. Thus, it requires a strict definition. The Financial Industry Regulatory Authority, or FINRA, defines day trading as the buying and selling of a security on the same day. The buying and selling may occur in either order. If you "short" stock, which means you sell stock you do not yet own, and then buy it back later in the same day, this is also a day trade. Day traders can profit from intraday declines in any stock in this way. Pattern Day Trading People who ...

Negative Externalities Many types of activity give rise to externalities. And these externalities can be positive and negative. Externalities are  third party effects  arising from production and consumption of goods and services for which  no appropriate compensation is paid . Externalities  occur outside of the market  i.e. they affect people  not directly involved  in the production and/or consumption of a good or service. They are also known as  spill-over effects . Economic activity creates  spill over benefits  and  spill over costs  – with negative externalities we focus on the spill over costs Negative externalities Negative externalities occur when production and/or consumption impose  external costs on third parties outside of the market for which no appropriate compensation is paid. Smokers ignore the harmful impact of  toxic ‘passive smoking’ on non-smokers Air pollution  fro...

What is inflation? Inflation  is a  sustained increase in the cost of living or the average / general price level  leading to a fall in the  purchasing power of money . The opposite of inflation is deflation which is a decrease in the cost of living or average price level. How is the rate of inflation measured? The  rate of inflation  is measured by the annual percentage change in consumer prices. The British government has set an  inflation target  of 2% using the  consumer price index  (CPI) It is the job of the  Bank of England  to set interest rates so that aggregate demand is controlled, inflationary pressures are subdued and the inflation target is reached The Bank is independent of the government with control of interest rates and it is free from political intervention.  The Bank is also concerned to avoid  price deflation  – we return to this a little later. Falling inflation does not me...

dEFINITION OF 'MARKET PRICE' The current price at which an asset or service can be bought or sold. Economic theory contends that the market price converges at a point where the forces of supply and demand meet. Shocks to either the supply side and/or demand side can cause the market price for a good or service to be re-evaluated. INVESTOPEDIA EXPLAINS 'MARKET PRICE' For example, suppose that the market price for a widget has been $10 for a number of years. Suddenly, the market price shifts to $20 when it is announced that only half of this year's widgets will be sold in stores. In this case, a drop in supply causes the market price to increase. In regard to stocks, the market price of a stock is the most recent price at which the stock was traded. It does not guarantee that an investor will receive the same price upon buying the stock afterward. For example, suppose that a company's stock has been halted from trading because it was planning to release so...

Markets in Action - Market for Health care Health care uses up scrace resources and involves both an economic and an opportunity cost. The NHS estimates that in 2011, a single visit to accident and emergency (A&E) costs on average £117. Delivering a baby without complications costs £1,200 whilst a hip replacement costs £6,000. Who should pay for health care? In 2008 the British National Health Service celebrated its 60th birthday but the future of the NHS as it exists at present always seems to be under question. How much longer can most NHS treatments and other services be provided free at the point of treatment and based on clinical need rather than people’s ability to pay? In most advanced countries the state is the dominant provider and funder of health care. The lowest share is in the United States where state funding represents less than fifty per cent of total health spending.  In Canada, Britain and Sweden, the health service is funded mainly through gener...