[Verse 1]
Three market types you need to know
Order-driven where your orders flow
Quote-driven dealers set the price
Brokered markets for trades so nice
[Chorus]
Market orders quick and fast
Limit orders make them last
Stop-loss saves you from the fall
Iceberg hides the order tall
ODQ - Order, Dealer, Quiet broker
That's the structure, market poker
[Verse 2]
Efficiency comes in three forms here
Weak form says the past's not clear
Semi-strong includes the news
Strong form means there's nothing to choose
[Chorus]
Market orders quick and fast
Limit orders make them last
Stop-loss saves you from the fall
Iceberg hides the order tall
Weak, Semi, Strong - efficiency song
Past, news, all - information's gone
[Bridge]
Bid-ask spread shows the cost
Market depth when liquidity's lost
Value beats and momentum rides
Size matters, calendar hides
Anomalies break the rules
Market's not for perfect fools
[Verse 3]
Index weights tell different stories
Price-weighted for stock price glories
Value-weighted by market cap
Equal-weighted gives each stock a map
Fundamental looks at the books
Rebalancing changes the looks
[Chorus]
Price and Value, Equal, Fun
Four ways to weight till day is done
Rebalance quarterly, reconstitute
When companies don't make the cut
[Verse 4]
Depository receipts cross the sea
Foreign stocks trade locally
Dual listings in two places
Same company, different spaces
[Outro]
From order types to index weights
Market structure sets the stakes
Efficiency and microstructure too
Now you know what markets do