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Election stock markets (also referred to as election prediction markets) are financial markets in which the ultimate values of the contracts being traded are based on the outcome of elections. Participants invest their own funds, buy and sell listed contracts, earn profits and bear the risk of losing money. Election stock markets function like other futures exchanges, such as commodity exchanges for the future delivery of grain, livestock, or precious metals. The main purpose of an election stock market is to predict the election outcome, such as the share of the popular vote or share of seats each political party receives in a legislature or parliament. Efficient markets are very good at reflecting all available information, often reflecting information faster than opinion polls, which take several days to complete and process. Traders also have a strong financial incentive to reflect their true opinion about the election outcome regardless of their political preferences. Election stock markets are also used for research and teaching purposes. Researchers can study trader behavior and market operations. Election stock markets also teach participants the fundamentals of trading, such as how to take a ''long'' or a ''short'' position. A list of related academic research papers appears below. ==Examples of election stock markets== In North America, two universities have been operating election stock markets for over a decade. The University of Iowa's Tippie College of Business has been operating the Iowa Electronic Markets (). The Iowa markets primarily track presidential and congressional elections. In Canada, the University of British Columbia's Sauder School of Business has been operating the (UBC Election Stock Market ). The UBC markets track federal and provincial elections in Canada. The Iowa and UBC markets are non-profit operations for research purposes. These markets do not charge commissions or transaction fees. Investments are typically limited to USD 500 or CAD 1,000. Privately run prediction markets have also emerged in recent years. Unlike their university counterparts, commercial prediction markets charge fees or commissions to cover their operating costs. Commercial markets may charge fees per transaction or commissions on net profits, and fees per transaction may be differentiated for price takers (those placing a market order) and price makers (those placing a limit order). Examples of commercial prediction markets include (Intrade Prediction Markets ) and (The Washington Stock Exchange ); both track predictions for a broad set of political events. Commercial prediction markets claim that they attract more investment and generate more trading volume than their academic counterparts as they don't limit a trader's capital investment. The prediction accuracy of commercial and academic election stock markets is an area of active research (see below). 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Election stock market」の詳細全文を読む スポンサード リンク
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