TECHNICAL AND FUNDAMENTAL ANOMALIES. PARADOXES OF MODERN STOCK EXCHANGE MARKETS
This paper continues the series of researches about the paradoxes of modern stock exchange markets and their impact on the real economy, addressing this time the most important technical anomalies but also fundamental anomalies, which can be observed on the financial markets. As we mentioned in seve...
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| Format: | Article |
| Language: | deu |
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University of Oradea
2013-07-01
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| Series: | Annals of the University of Oradea: Economic Science |
| Subjects: | |
| Online Access: | http://anale.steconomiceuoradea.ro/volume/2013/n1/003.pdf |
| _version_ | 1818488298273767424 |
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| author | BAKO Elena Dana SECHEL Ioana Cristina |
| author_facet | BAKO Elena Dana SECHEL Ioana Cristina |
| author_sort | BAKO Elena Dana |
| collection | DOAJ |
| description | This paper continues the series of researches about the paradoxes of modern stock exchange markets and their impact on the real economy, addressing this time the most important technical anomalies but also fundamental anomalies, which can be observed on the financial markets. As we mentioned in several previous articles, the paradoxes of stock exchanges are related to potential contradictions that arise in relation to a generally accepted truth. A lot of researches in the field of stock market investment focused on finding the answer to the question whether historical prices can be used to predict future prices for listed securities. Complex forecasting methods were created to clarify this aspect. Thus, technical analysis is a method of forecasting the price movements and trends of the market in the future, by studying the market graphs (including here both, the price of the listed instruments and the volume of transactions). The fundamental anomalies refer to the anomalies in
trading financial instruments, and to the elements of fundamental analysis. The basic principle of fundamental analysis refers to the fact that the market price of any financial instrument is the result of supply and demand for that instrument. Both the supply and demand that finally determine the price of a financial instrument, are under the influence of various factors. Market’s analysts monitor various economic indicators and examine the market reports, to detect changes that may occur in the economy. The fundamental analysis attempts to predict prices and the overall market development by analyzing some economic indicators, political or social factors which are likely to influence the stock exchange prices. Both technical and fundamental anomalies have a major impact on price formation for financial instruments which are traded on stock exchanges, and are able to offer to warned investors higher earnings. |
| first_indexed | 2024-12-10T16:49:09Z |
| format | Article |
| id | doaj.art-617d37e47c2e49c9967175be5f7246a6 |
| institution | Directory Open Access Journal |
| issn | 1222-569X 1582-5450 |
| language | deu |
| last_indexed | 2024-12-10T16:49:09Z |
| publishDate | 2013-07-01 |
| publisher | University of Oradea |
| record_format | Article |
| series | Annals of the University of Oradea: Economic Science |
| spelling | doaj.art-617d37e47c2e49c9967175be5f7246a62022-12-22T01:40:57ZdeuUniversity of OradeaAnnals of the University of Oradea: Economic Science1222-569X1582-54502013-07-012213743TECHNICAL AND FUNDAMENTAL ANOMALIES. PARADOXES OF MODERN STOCK EXCHANGE MARKETSBAKO Elena Dana0SECHEL Ioana CristinaBabeș - Bolyai University, Faculty of Economics and Business Administration, Cluj-Napoca, Romania,This paper continues the series of researches about the paradoxes of modern stock exchange markets and their impact on the real economy, addressing this time the most important technical anomalies but also fundamental anomalies, which can be observed on the financial markets. As we mentioned in several previous articles, the paradoxes of stock exchanges are related to potential contradictions that arise in relation to a generally accepted truth. A lot of researches in the field of stock market investment focused on finding the answer to the question whether historical prices can be used to predict future prices for listed securities. Complex forecasting methods were created to clarify this aspect. Thus, technical analysis is a method of forecasting the price movements and trends of the market in the future, by studying the market graphs (including here both, the price of the listed instruments and the volume of transactions). The fundamental anomalies refer to the anomalies in trading financial instruments, and to the elements of fundamental analysis. The basic principle of fundamental analysis refers to the fact that the market price of any financial instrument is the result of supply and demand for that instrument. Both the supply and demand that finally determine the price of a financial instrument, are under the influence of various factors. Market’s analysts monitor various economic indicators and examine the market reports, to detect changes that may occur in the economy. The fundamental analysis attempts to predict prices and the overall market development by analyzing some economic indicators, political or social factors which are likely to influence the stock exchange prices. Both technical and fundamental anomalies have a major impact on price formation for financial instruments which are traded on stock exchanges, and are able to offer to warned investors higher earnings.http://anale.steconomiceuoradea.ro/volume/2013/n1/003.pdfstock market paradox, technical anomalies, fundamental anomalies, trend lines |
| spellingShingle | BAKO Elena Dana SECHEL Ioana Cristina TECHNICAL AND FUNDAMENTAL ANOMALIES. PARADOXES OF MODERN STOCK EXCHANGE MARKETS Annals of the University of Oradea: Economic Science stock market paradox, technical anomalies, fundamental anomalies, trend lines |
| title | TECHNICAL AND FUNDAMENTAL ANOMALIES. PARADOXES OF MODERN STOCK EXCHANGE MARKETS |
| title_full | TECHNICAL AND FUNDAMENTAL ANOMALIES. PARADOXES OF MODERN STOCK EXCHANGE MARKETS |
| title_fullStr | TECHNICAL AND FUNDAMENTAL ANOMALIES. PARADOXES OF MODERN STOCK EXCHANGE MARKETS |
| title_full_unstemmed | TECHNICAL AND FUNDAMENTAL ANOMALIES. PARADOXES OF MODERN STOCK EXCHANGE MARKETS |
| title_short | TECHNICAL AND FUNDAMENTAL ANOMALIES. PARADOXES OF MODERN STOCK EXCHANGE MARKETS |
| title_sort | technical and fundamental anomalies paradoxes of modern stock exchange markets |
| topic | stock market paradox, technical anomalies, fundamental anomalies, trend lines |
| url | http://anale.steconomiceuoradea.ro/volume/2013/n1/003.pdf |
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