The Motley Fool financial advice
News from Houston Chronicle:


Who’s buying?

Q: When the stock market falls due to lots of selling, who’s buying? – J.F., Salinas, Calif.

A: Generally, for every seller, there’s a buyer. The stock market is like an auction, where shares trade at prices that buyers are willing to pay and sellers are willing to take.

Thus, if it’s revealed that the Free Range Onion Co. engaged in fraudulent accounting, buyers will immediately decide that its shares are worth a lot less, and sellers will only be able to unload at lower prices. You might want to sell your shares, but at their new low price, there’s probably someone who thinks they’re a bargain.

New meaning for ‘OTC’

Q: What does “OTC” refer to in the stock market? – L.N., Victoria, Texas

A: It…………… continues on Houston Chronicle

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Related News:

Financial Amnesia’ a Factor Behind Crisis
News from CNBC:

Fund managers and financial advisers should be forced to study financial history to reduce the likelihood of future market panics and crashes, according to a leading trade body for investment professionals.

Credit Crisis

A report by the Chartered Financial Analyst Society of the UK condemns “financial amnesia” among institutional investors, arguing that a failure to heed the lessons of past bubbles was a key factor behind the global financial crisis.

CFA UK, which represents 9,000 investment professionals, argues that the study of financial history should form a major part of all compulsory education for retail and wholesale investment professionals. “Financial amn…………… continues on CNBC

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