Performing Theory?
Performing Theory?
This chapter provides information about the changes introduced in stock markets across the United States after the financial crisis of 1987 with increased emphasis on trading derivatives of stocks and other financial assets in place of stocks only. Derivatives started trading on the U.S. stock markets in the 1970s with a minor share, but gained popularity among share traders and stock brokers after the financial crisis of 1987. The chapter also focuses on exploring the emergence of modern economic theories of financial markets in the United States and other countries. These theories were mainly based on financial economics, which was composed of the mathematical models of markets.
Keywords: stock market, financial crisis, derivatives, stocks, financial economics
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