Empirical Study on Price-Risk Perception of Investors in Stock Market

2015 ◽  
Vol 3 (2) ◽  
Author(s):  
Sanjeev Chowdhury ◽  
Nitin Tiwari
Keyword(s):  
Risk Perception ◽  
Stock Market ◽  
Empirical Study ◽  
Commodity Markets ◽  
Price Risk ◽  
Financial Loss ◽  
Stock Trading ◽  
Risk Hedging

In the most basic sense, risk is defined as the chance of financial loss. More formally, risk may be defined as the variability of returns associated with a given asset. Investors in commodity markets use various means to minimize the risk. Hedging is one way of minimizing the risk, at the same time it can also help in locking the profits. The purpose of the present study is to examine if there exists a correlation between the type of securities and the risk associated with it. The study aims to be useful for analyzing the most preferred means of securities buying and uncover investor objective behind purchasing those securities. For the purpose of this study a questionnaire was administered and data were collected from a stock trading house located in Delhi.

scholarly journals Global Financial Derivatives Market Development and Trading on the Example of Ukraine

2020 ◽  
Vol 74 ◽  
pp. 05001
Author(s):  
George Abuselidze ◽  
Nadiia Reznik ◽  
Anna Slobodianyk ◽  
Victoria Prokhorova
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Market Economy ◽  
Financial Stability ◽  
Global Scale ◽  
Financial Derivatives ◽  
Market Development ◽  
Price Risk ◽  
Risk Hedging ◽  
Current State

Stock market of financial derivatives in Ukraine still develops. There is important to find the way how to use world experience for the domestic implementation. First of all there is a need to improve of legislative base to ensure economic and financial stability. The next way of integration process for domestic stock market of financial derivatives is stock consolidation. Before implementation of foreign experience on the stock market of Ukraine it is important to take into account of all risks which are connected with this process. This research shows appropriate steps for integration of Ukrainian stock market of financial derivatives into global scale. The article identifies the economic essence of derivatives and their types within market economy. Key trends in global derivatives trading are highlighted. Current state and organizational measures of derivatives market development in Ukraine are discussed. Price risk has become the main feature of contemporary commodity and financial markets. Globalization of world commodity and financial markets leads to rapid changes and uncertain business conditions. Under current circumstances, derivatives market provides efficient ways for price risk hedging within market economy. That is why it is important to take into consideration the contemporary state and perspectives of derivatives market in Ukraine.

Measuring Price Risk in Commodity Markets

2010 ◽  
Vol 5 (2) ◽  
pp. 380-394 ◽  
Author(s):  
Szczepan Figiel ◽  
Mariusz Hamulczuk
Keyword(s):  
Commodity Markets ◽  
Price Risk

Can Twitter Help Predict Firm-Level Earnings and Stock Returns?

2017 ◽  
Vol 93 (3) ◽  
pp. 25-57 ◽  
Author(s):  
Eli Bartov ◽  
Lucile Faurel ◽  
Partha S. Mohanram
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Future Prospects ◽  
Traditional Media ◽  
Stock Trading ◽  
Firm Level ◽  
Quarterly Earnings ◽  
Announcement Returns ◽  
Twitter Activity ◽  
Original Information

ABSTRACT Prior research has examined how companies exploit Twitter in communicating with investors, and whether Twitter activity predicts the stock market as a whole. We test whether opinions of individuals tweeted just prior to a firm's earnings announcement predict its earnings and announcement returns. Using a broad sample from 2009 to 2012, we find that the aggregate opinion from individual tweets successfully predicts a firm's forthcoming quarterly earnings and announcement returns. These results hold for tweets that convey original information, as well as tweets that disseminate existing information, and are stronger for tweets providing information directly related to firm fundamentals and stock trading. Importantly, our results hold even after controlling for concurrent information or opinion from traditional media sources, and are stronger for firms in weaker information environments. Our findings highlight the importance of considering the aggregate opinion from individual tweets when assessing a stock's future prospects and value.

PRICE RISK HEDGING IN INTERNATIONAL TRADE OF AGRICUL-TURE AND FOOD COMMODITIES USING OPTIONS

2020 ◽  
Author(s):  
Nikolai Nalbandian ◽  
Keyword(s):  
International Trade ◽  
Multinational Enterprises ◽  
Practical Importance ◽  
Sustainable Growth ◽  
Price Risk ◽  
Continuous Increase ◽  
Economic Agents ◽  
Risk Hedging ◽  
Option Contracts ◽  
Food Commodities

The focus of this article is an employment of option contracts by economic agents when hedging a price risk in international trade of agriculture and food commodities. Despite a serious downturn in the world economy accompanied with major logistics and global value chains disruptions caused by Coronavirus disease in 2020, international agri-food trade demonstrates a sustainable growth supported by a constantly waxing demand due to continuous increase in population and improvement in living standards as well as a higher supply due to modern technological progress. It therefore implies that a comprehensive price risk management system should be introduced to avoid or minimize market participants’ exposure to potentially adverse future events. The article is devoted to the study of the key advantages of using options as an integrated element within such a system. Comparative analysis of future and option contracts is conducted to better understand their respective application depending on a risk profile of an event. The economic nature of options is presented from the perspective of a concept of price insurance that provides for an existence of a certain risk premium determined by market forces which is paid by economic agents to obtain such a price guarantee. Fundamental characteristics of an option contract as a financial derivative, its types and features, reason of usage according to the goals that economic agents, including e.g., powerful multinational enterprises (MNE), try to achieve depending on their specific market position are described. The article explains situations of economic agents, both producers and processors of agricultural commodities on the one hand (acting as hedgers) and speculators one the other hand (acting as such), being naturally long or naturally short as well as respective tactics based on options they adhere to with the aim of protecting their positions against unfavorable moves in market prices. Thus, the fact it refers to real scenarios of using options as price risk hedging tools which international traders can utilize when moving agricultural and food commodities globally, reinforces opinion that this article is of a significant practical importance.

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