| Movements: Magnitude & Dimension Of Price In Free Markets | ||
A Questioning Theory: How much should we expect a specific market entity to move up or down in a given time? -- Or -- Should we expect all market entities in a specific market at a given time to move commensurately? Case A.) Before computerization of the specialists' books: How could it be possible that all stocks could possibly move up and down the same ways, amounts, magnitudes, and have the same timing of those moves dependent upon specific buy and sell pressures? It is not likely in randomized market schemes. Case B.) Today, with automation of the specialists' books: If programmed properly and using the same programmed module to control price and volume reaction magnitudes, all market entities (stocks, bonds, commodities, indices, etc.) could move in the same ways. But that still leaves a portion of stocks that the specialist handles manually by hand that he can buy and sell at away-from- the-market prices. Then, when those trade volumes and resultant prices are input to the master automated book (database) and thereby integrated with all automated prices and volumes, it is obvious that price can still be impacted by the specialists' decisions.
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| See also: Introduction |
| The investment axiom that is always valid: Caveat Emptor |
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