How do Hedge funds influence the Stock market to the great extent that they fall or rise too much?
370302
An indivdual one probably doesn't influence it that much, unless you're LTCM.  A lot of them are momentum driven, so they increase general volatility on the up and down moves that happen naturally.\n\nEdit: Now that I think about it, penseur's argument is pretty accurate.  By the way, penseur, your email is unconfirmed, so you can't receive private messages...
491432
In most countries when you sell an investment, you have to pay taxes on the profits immediately, even if you sold the investment to reinvest in something else.\n\nTo avoid this inconvenience banks and other investment firms invented the "fund of funds". The manager of this type of fund determines his own strategy of arbitrage and reinvestment within a number of mutual funds. For the buyer of the fund of funds the advantage is that his reinvested money did not leave the fund of funds, and he doesn't have to pay taxes.\n\nThe advantage for the bank is that the fund family used by the manager is often that of the bank, which means that the bank earns twice the manager fee, once on each fund.  \n\nThe details depend on the country and its tax rules.\n\nBeing a fund of funds is one of the investment strategies used by hedge funds as it permits arbitrage between stocks, bonds, commodities according to the model the manager uses\nbut without him being encumbered by the burden of having to choose individual investments.
963213
The answer is a huge short term effect... read this...\n\nhttp://www.investopedia.com/terms/c/cramerbounce.asp\n\n\nHe is a previous successful hedge fund manager, so he deserves some credit.\n\nThanks ahead for the best answer vote.
487777
There will be hedge funds on all currency exchanges in case there is a profit to be made.\n\nThe big ones are\n-EBS (they started allowing hedge funds on this inter-bank)\n-CME\n-Hotspot\n-Currenex\n-maybe Reuters, but this is a much smaller subset\n\nProbably a few other small ones too.
114894
The answer is exchange traded funds. Click the first link below to see these funds.\n\nFor trading strategies using various types of funds, click the second link.
575487
Hi\n\nThe reason is simple, One must understand that the very purpose of using derivatives is to manage risk ( apart from speculation and arbitrage) Therefore many funds and large investors buy in to futures as a measure to hedge portfolios than buy options because the number of lots required to make an effective hedge if ur buying options will be huge. Also futures is more easy to trade and to understand than option pricing, having said that the risk and return is very high in futures.\n\nOptions are generally traded by the retail investors. If you would have observed only index options are traded more than stock options again for the reasons stated above.\n\nHope this helps
322757
They get to sell shares in the company to outside investors, who have a stake in the companies fortunes, whilst raising money for more costly plans, for the future which may include expansion.but it can also leave them vulnerable to take over by a major player, such as AOL/ time warner, et al.
660859
The sale of such a small amount will not affect the overall price of the stock.  You'd have to sell a very large block of stock to move the price on most shares and then if you were successful in lowering the price, the fact that you were buying a larger block than you sold may move the price back up making your trade a loser.
661627
A stock market is how much a companies shares are worth at the time. Low means that they are not selling for a lot, high means that one shares costs more than it did previously. \n\nThese fluctuations are based on events going on in the company and how much people are willing to support them. Often stocks drop when people either see their stocks are worth more and want the money at the time or the company is having problems.\n\nHigh often occurs when a new product has been developed and people want in on the profits that company is gaining.
265502
Maybe this site can help. \nhttp://www.businesschambers.com/sh.cfm?sq=Hedge%20Fund%20Analyst
269790
many studies have been done on this subject. here is just one of them www.cob.ohio-state.edu/fin/journal/dice/papers/1998/98-1.pdf\n\nforward splits can have the effect of bringing in more investors by a lowered entry price. many investors don't realize that it does not effect the overall value of the stock or the company. the real tough part is knowing if the stock has run up prior to the split because of leaked information or if it will move afterwards.\n\nmy personal observation has always been that a stock tends to move prior to the split, then settles down afterwards. very unscientific on my part.
700271
I've done that with what I call 'loose change'.  Sometimes I've got a few dollars sitting around, obviously not going to make a lot of interest and not large enough for something substantial.  If some risky thing has been going down but I still feel it worth holding onto (its kinda fun when you sweat over a $90 stock moving a couple of bucks while a stock selling for less than a dime now goes for a buck or two, and yes, I've had that happen), then making an extra small trade can average down the value of your position.  When the stock starts to tick up for whatever reasons, you now have a lower break-even or profit point.  Again, it is only if you've got a few bucks left not doing anything and at Scottrade for $7 plus a half-point, it doesn't hurt much.  Of course, I also got a couple that are cluttering up my list because it will cost more to sell than they are worth today but that is part of the risk, right?
1037621
There is a inverse relationship. When interest rates go up, the stock markets go down. When interest rates go down, stock market go up.\nThere is a old saying "Don't fight the Fed". When the Fed increase its interest rates twice, the stock market would fall.\nAs the interest rates rise, investor would seek safer return in T-bill, bonds, and saving account in banks.\nAs the interest rates fall, investor would to seeking higher return in Stocks rather than invest in low rates of returns in bonds.
382324
A bull run on the stock exchange is a time when the investors create a situation that they buy shares at lower price and the buying activity is more than the selling side. In such case the prices will go on and then a reasonable rise in price means a good return for the investor. Such upswing is the Bull Market..... the Bull uses his horn to rise the stock index.\n\nOn the other hand there might be heavy selling and out pass the buying. Higher no of sellers will mean a competition to sell shares. So with more stocks available to buy the buyer will want a still lesser price. So the prices will keep falling and finally a time will come where is little to sell. At such lower prices investors may buy because that is the lowest price at which they can buy. Thus it is like a bear hugging the prey when it is on free fall. Thus the Bear run...\n\nLong story short.... Bulls.... upswing...... Bears.... downwards..\n\nHappy enjoying the bourse
221570
Could be a lot of factors. I would say now it is Interest Rates. Investors may be Speculating that rates will soon go up. Normally when interest rates rise you will see negative fluctuations in the Stock Market because it is a Company Expense. The Bond Market will actually perform better in time. Then as the Economy Dictates the Investors will hopefully sell the Bonds at a profit and reinvest into Stocks. This is how I see this and may be wrong, but, it has worked for me when I invested in this manner.
697793
Gold and silver isn't a stock that increases or drops in great ammounts.  Re: tech industries, those are volatile - but do your homework re: trends and such to find out what is really predicted to do well and what isn't.  IE...Nortel like the previous person was mentioning.  The telecom industry did really well in the late 90's....but also - Nortel had a HUGE layoff after the telecom industry started going downhill.  If they did that - well, that should tell you something.  You really need to do your homework if you're going to invest in a specific tech type of stock.  Energy bonds and stocks are ones that do rise in value but do not generally do so in a very rapid pace...
1104537
There are two fund families that promote short selling strategies.\n  They are Rydex Funds, and Pro-Funds\n  Obviously the government permits it AS LONG AS THE CUSTOMER HAS BEEN INFORMED OF IT.  IT IS LISTED IN THE FUND PROSPECTUS.\n  Additionally, typical hedge funds participate in these actions.