Here I am going to reveal an exciting theory on how to make money in the stock market fast and easily. On May 6, 2010 at 2:30 P.M EST the Dow Jones average of stock prices fell 998 points wiping out $1 trillion in equity. In just 10 minutes the market suddenly reversed itself and the whole episode took 20 minutes. %link% The firm used manual trading and an "execution algorithm" or 'sell algorithm' which took into account price, time, and volume. The staff of the Commodity Futures Trading Commission" contributed language about HFT problems in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act ,according to McTague.
The Islamic Financial Market (IFM) refers to the market where the financial instruments are traded in ways that do not conflict with the Shari'ah principles. In other words, the IFM represents an assertion of religious law in the financial market transactions where the market should be free from the involvement of prohibited activities by the Shari'ah.
A stock market typically refers to a financial market that handles the buying and selling of company stocks, derivatives and other securities. Different sized entities participate in stock market activities, ranging from small investors to the governments, corporations, large hedge fund traders, and banks.
The stock market, in which long-term securities are traded, forms a major component of the capital market. Equity based securities such as shares of public limited companies (also debt-based securities, in which Islamic banks do not deal) are bought and sold in the Stock Exchange. The primary market serves to help %link% firms to raise new resources, while the secondary market facilitates liquidity of investments through the trading of shares. The Stock Market will play a pivotal role in the Islamic financial system, but, in order to provide a continuous pricing mechanism, will have to be insulated from major shocks and crashes.
This is because they often try to predict the psychological behaviour of the market in complete disregard of the underlying economic value of assets. Such results are like the results of gambling, involving transfer of resources among the participants but adding nothing to the initial stock of resources. Speculation can cause wild swings in the market and was largely responsible for the crashes of 1929 and 1987. The Stock Market is no exception to this rule and needs a continuous flow of information if it is to operate smoothly.