
Contents
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6 What is a financial market? Global markets as microinstitutional and post-traditional social forms
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Introduction Introduction
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Auction markets Auction markets
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Financial markets Financial markets
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The impact of narratives and practices on pricing The impact of narratives and practices on pricing
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Payback: pedigree for procedure Payback: pedigree for procedure
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Repackaging versus relabeling: from practice to narratives Repackaging versus relabeling: from practice to narratives
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Pricing option derivatives: a very special repackaging narrative Pricing option derivatives: a very special repackaging narrative
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From historical volatility to implied volatility From historical volatility to implied volatility
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The impact of modern technologies on market narratives and practices The impact of modern technologies on market narratives and practices
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Notes Notes
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References References
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7 Auctions And Finance
Get accessCharles W. Smith, Professor Emeritus of Sociology, Queens College and the Graduate Schools of CUNY, has been engaged in ethnographic research of auction, primarily financial, markets since the mid-1960s. His books include The Mind of the Market (1981), Auctions (1989), and Success and Survival on Wall Street (1999). His more recent publications include “Coping with Contingencies in Equity Option Markets: The ‘Rationality’ of Pricing” in The Worth of Goods (2011), “Staging Auctions: Enabling Exchange Values to be Contested and Established” in Negotiating Value in the Creative Industries; “Markets as Definitional Practices,” CJS (2007); and “Financial Edgework: Trading in Market Currents,” in Edgework: The Sociology of Risk Taking (2005). His primary focus has been on how markets cope with ambiguity and contingencies.
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Published:03 June 2013
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Abstract
This article has four main objectives: To provide concise, descriptive, sociologically informed accounts of financial markets and auction markets with particular attention to their interconnections, similarities and differences. To illustrate the central role that ‘pricing’ plays in both structuring and validating these markets. To examine the different ways in which market narratives and practices mould pricing. Finally, to review some of the various changes associated with technological developments and globalization that have transformed these markets including the way they price.
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