Sentences with phrase «run volatility of price»

For ordinary stocks, large enough, with legitimate earnings and somewhat predictable prospects, the size of the bid - ask spread reflects the short - run volatility of price.

Not exact matches

Where these balance sheet improvements are most advanced, future financial distress will look more like what we typically see in instances of financial stress in the major economies — substantial asset price volatility and the potential for substantial financial losses, but less in the way of a significant disruption to either short - run or long - run real economic growth.

Whether through options or variance swaps, if volatility is sold, the reward is more income in the short run, at the cost of possible capital losses in asset classes one is forced to buy or sell at disadvantageous prices later.

That increased value might not always be exactly recognized the market at all times (leading to the aforementioned volatility), but the price of your stocks (and thus the market value of your assets / portfolio) should increase over the long run.

Energy is an interesting one, has been a difficult sector to participate in given the volatility of the underlying commodity, but our work currently shows that with this fairly significant run up in oil prices up until recently, the energy stocks themselves, have not reflected it.