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Stock Market Symbol: WFC (NYSE)
Industry: Banking, Lending, Finance
Primary Competitors: Bank of America, Citigroup, JP Morgan Chase, U.S. Bank, Smaller and local credit unions and banks.
John G. Stumpf, Chairman, President and Chief Executive Officer
imothy J. Sloan, Senior EVP, Chief Financial Officer
Patricia R. Callahan, Senior EVP, Chief Administrative Officer
Kevin A. Rhein, Senior EVP, Chief Information Officer
Michael J. Loughlin, Senior EVP and Chief Risk Officer
Richard D. Levy, EVP, Controller
James M. Strother, Senior EVP, General Counsel
David M. Carroll, Senior EVP, Wealth, Brokerage & Retirement Services
Michael J. Heid, President, Home Mortgage and EVP, Wells Fargo & Company
David A. Hoyt, Senior EVP, Wholesale Banking
Avid Modjtabai, Senior EVP, Consumer Lending
Carrie L. olstedt, Senior EVP, Community Banking
Employee Recruitment and Development
raining for low-level employees begins with working at the counter as tellers, but WFC is committed to giving its low-level employees…
The company's home loans are in the maturity stage because they are relying on this product as a major portion of their business.
etween 1929 and 1932 the total value of global trade had declined by more than half.
When it was time to elect a new president in 1932, Americans were ready for change and eager to embrace a new leader who could help them (ryant, 1998). The election meant a lot to Americans and to the rest of the world, as national and global economies were in a state of chaos. America elected Franklin Delano Roosevelt and his soothing personality slowly inspired confidence and hope.
y the time Franklin D. Roosevelt became president in March of 1933, the banking system was in despair (PS, 2008). Americans had seen $140 billion disappear when their banks failed. usinesses could not get credit for inventory. Checks could not be used for payments because no one trusted that the checks were good.
Roosevelt's New Deal began with the simple idea to try something new (ryant,…
Bryant, Joyce. (1998). The Great Depression and the New Deal. Yale-New Haven Teachers Institute.
Kennedy, David. (1999). Freedom From Fear: The American People in Depression and War. Oxford University Press.
MSN Encarta. (2008). Great Depression in the United States. Retrieved from the Internet at http://encarta.msn.com/encnet/refpages/refarticle.aspx?refid=761584403.
PBS (2008). Stock Market Crash. Retrieved from the Internet at http://www.pbs.org/fmc/timeline/estockmktcrash.htm .
Stock market, there are a number of factors that will have an impact on share prices. This is because of perceptions about: future prospects for the company and the effect of new products / services on the earnings per share. In the case of Apple, the stock fell from $205.94 to $192.06. This was in response to the firm announcing the introduction of the I Pad. What makes the situation so troubling; is this was an eagerly anticipated announcement for a series of innovative products. Yet, investors were not enthusiastic on the news (which led to the selloff). To fully understand what is happening, there will be a focus on why the price of the stock fell. Once this takes place, is when specific insights will be provided that is showing if this was a systematic or an intrinsic move.
Why would the price of AAPL fall just when the…
Hernandez, J. (2010). NY Times. Retrieved from: http://www.nytimes.com/2010/01/30/business/30markets.html
Apple I Pad Sends Stock Down. (2010). CNN. Retrieved from: http://money.cnn.com/2010/01/27/technology/ipad_apple_stock/
Undoubtedly, this being a factor, the trends seen in the price inclines with Lowe's stock reports may be a trailing effect of the growth in product sales during the months prior to the apparent growth trends. Large spikes in these trends, either inclining or declining, are direct responses from this type of seasonal business. When a surge of orders and purchases has occurred, there may be several days or weeks before those full profits are reportable. There is also the consideration for the fact that after these seasonal points incur their visible stock trends, there is a point at which declining numbers may be directly apparent in the very next patterns. Other factors must also be attributed, such as internal workings, news, economical factors, and even environmental aspects.
Lowe's Companies, Inc. Declares Cash Dividend"
Lowe's Companies, Inc. announced that the oard of Directors has declared a quarterly cash dividend of…
Cable News Network (CNN). 2007. A Time Warner Company. http://money.cnn.com/quote/snapshot/snapshot.html?symb=LOW
MSN. 2007. MSN Money Focus. http://news.moneycentral.msn.com/ticker/rcnews.aspx?symbol=U.S.:LOW&view=all&ipage=2
(Vital Information for Stock Market Investors! What Every Investor Needs To Know)
egarding increases in the stock market, one has seen in the past that rises take place over a long-term, but the terms are very long. When the Dow crashed in 1929, it took 26 years to regain the ground that was lost. Again it fell to a level below 1000 in 1973 and then it took ten years before that level was reached again. In Japan, the Nikkei fell and has now continued to fall for the last 14 years, and does not seem to be recovering. According to these experts, the best measure for any investor is now to invest in shares that are historically safe and income producing and the income levels are around the historical average of Dow. (Vital Information for Stock Market Investors! What Every Investor Needs To Know)
The study of market history…
Boshnack, Robert. "Vital Information for Stock Market Investors! What Every Investor Needs to Know" Retrieved from http://www.usafutures.com/stockmarketnews.htm
Accessed 27 August, 2005
"How to Invest in the U.S. Stock Market" Retrieved from http://www.market-barometer.com/how_to_invest.htm#Buy%20Stocks%20Direct%20from%20Companies Accessed 27 August, 2005
"Is the market overbought? Do you think stocks are overvalued?" Retrieved from http://www.market-barometer.com/archive_stock_market_articles.htm
Stock Market Trading/Corporate Finance
Insider trading involves the trading of public company's stock or other securities such as stock options or bonds with people who can get access to non-public information regarding that company. However, there are some countries where insider trading based on insider information is considered illegal. esearch shows that purchase portfolio normally earns abnormal returns for over 50 points every month. A quarter of these abnormal returns accumulate within the first five days after the first transaction while a half accumulates in the first month. The sale portfolio normally earns abnormal returns. In addition, studies show that abnormal returns in small firms do not differ significantly from those that are in large firms. At the same time, top executives do not earn higher abnormal returns compared to other insiders. Therefore we can say that studies on insider trading generally show that insiders make positive abnormal…
Richard, F. (2008). Dividend reductions and the pecking order theory. Retrieved July 17, 2014 from http://www.freepatentsonline.com/article/Journal-Academy-Business-Economics/192587620.html
Jeng, L.,Metrick, A.,Zeckhauser, R. (1999). The profits to insider Trading: A performance-Evaluation Perspective.
Stock Market Crash of 1987
The purpose of this report is to discuss in detail the stock market crash of 1987. The stock market is supposed to fluctuate from day-to-day. But this account will delve into some of the less obvious reasons for that dramatic day on all Street and also providing additional insights into how and why investors are in the game and why they were so taken aback by that particular market downturn.
This testimony will also examine some of the more immediate consequences that occurred immediately following the events and how those series of events have carried through to the mindset of present day investments and the Federal Reserve Bank's policies and procedures. Then the report will try to ascertain some lessons learned so as to avoid repeating history.
The report also attempts to explain some investor philosophies that are continually occurring throughout history. Unfortunately,…
( 1987 Stock Market Crash) The 1987 Stock Market Crash. Lope.ca. 1 Oct. 2004 .
(Better Than Expected Earnings Boost Yahoo SharesJim HuJuly 12, 2000)Better Than Expected Earnings Boost Yahoo Shares. Ed. Jim Hu. July 12, 2000. News.com. 1 Oct. 2004 .
(Black Tuesday) Black Tuesday. lowrisk.com. 1 Oct. 2004 .
(Greatest Market CrashesInvestopedia.com) Greatest Market Crashes. Ed. Investopedia.com. Investopedia.com. 1 Oct. 2004, .
The following is a chart of what the February 2006 crash looked like, according to Bloomberg.com.
Source: Bloomberg.com, 2007
According to Bloomberg, this downward crash had a dramatic effect on the U.S. market as well. hen one views this chart, it is no wonder that speculators are divided about the reactions of Saudi Investors. This was a devastating crash for many and it will undoubtedly have a dramatic effect on their decisions in the future. The real question is whether this indicates a reason for caution in the future, or whether it represents a good time to get some good deals.
There are many factors that the Saudis cannot control, but that have a dramatic effect on their economy and well-being. They depend on consumer demand and are limited by the amount of money that the consumer is willing to pay for their products. They are particularly sensitive to shocks…
Abraham, A., Seyyed, F., and Alsakran, S. 2002. Testing the Random Walk Behavior and Efficiency of the Gulf Stock Markets. The Financial Review. August 2002. 37 (3): 469.
Al-Rasheed, M. 2002. A History of Saudi Arabia. Cambridge University Press.
Berument H. And Kayimaz H (2001) "The day of the week effect on stock market volatility." Journal of Economics and Finance. 25:181-193.
Bloomberg.com. 2007. Stock Market Index Chart: SASEINDX. Accessed January 14, 2007 at http://www.bloomberg.com/apps/quote?ticker=SASEIDX:IND .
A number of economists suggest that markets are efficient, but this efficiency is merely assumed. In this regard, Batten points out that, "There is no actual proof. It is virtually impossible to test for market efficiency since the 'correct' prices cannot be observed. To get over this hurdle, most tests examine the ability of information-based trading strategies to make above-normal returns. But the results of such tests do not really prove whether markets are efficient. Therein lies the basic dilemma" (p. 210).
In his book, Stock Market Cycles: A Practical Explanation, Bolten (2000) reports that assuming that an economy begins in a trough (a period this author refers to a the first stage of the economic cycle), expectations are for positive economic growth and higher future earnings, which has a positive impact on stock prices. In this regard, Bolten points out that, "Interest rates are typically low at this period…
Abdou, a., Al Zarooni, S., & Lewis, J. (2006). Public healthcare project appraisal in the United Arab Emirates: Towards better feasibility. Architectural Science Review, 49(1), 31.
Abu Dhabi securities market: Finished first presentation in a series of road shows in London. (2007, June 14). Abu Dhabi Securities Market. [Online]. Available: http://portal.adsm.ae/wps/portal/!ut/p/_s.7_0_A/7_0_GS/.cmd/ad/.ar/sa.details/.ps/X/.c/6_0_9U/.ce/7_0_JL/.p / 5_0_9U/.d/2?PC_7_0_JL_newsid=1181795795&PC_7_0_JL_from=main.
Al-Alkim, H.H., Al-Sayegh, F., Al-Shamsi, F.S., Gause, F.G., Jahshan, K.E. et al. (1999). A century in thirty years: Sheikh Zayed and the United Arab Emirates. Middle East Policy, 6(4), 2.
Balling, M., Lierman, F., & Mullineux, a. (2004). Financial markets in Central and Eastern Europe: Stability and efficiency. New York: Routledge.
obesity and diabetes increased?
The stock market is one of the most powerful entities in the contemporary society and this is largely owed to the fact that it controls the financial aspect of the social order. Stocks and bonds are the most important concepts in the stock market, as companies and institutions buy and sell them depending on their interests. Most individuals who want to make a profitable investment think about the stock market as a starting point for their businesses. These people basically want to buy stock, hold it for a while, and then sell it for a higher price than they initially paid for it.
Each company has stocks of ownership and depending on the amount of stocks that an individual possesses; he or she is more or less entitled to control dealings in the respective firm. Companies sell stock with the purpose of improving their business, considering…
Furgang, Kathy, "How the Stock Market Works," (The Rosen Publishing Group, 2010)
McClellan, Stephen T. "Full of Bull: Do What Wall Street Does, Not What it Says, To Make Money in the Market," (FT Press, 2008)
"The Stock Market," Retrived August 11, 2012, from the Oracle ThinkQuest Website: http://library.thinkquest.org/3088/stockmarket/introduction.html
Saudi Arabian Stock Market
The objective of this research study is to examine the influences of the Saudi Arabian stock market including such as prices of oil, political factors, regional events, financial crises and how these have impacted the Saudi Arabian market relative to other markets. This work will additionally examine regulatory authority as well as laws and regulations in the Saudi Arabian market including such as efficiency, transparency and the role of CMA in fraud.
The work of Arouri and ault (2011) that the GCC was established in 1981 and includes the countries of Bhrain, Oman, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates (UAE). GCC countries share several common patterns. In 2007, they produce together about 20% of all world oil, control 36% of world oil exports and possess 47% of proven reserves. Oil exports largely determine earnings, government budget revenues and expenditures and aggregate demand." (Arouri…
Ramady, Mohamed A. (2010) The Saudi Arabian Economy: Policies, Achievements and Challenges. Springer 2010. Retrieved from Google Books at: http://books.google.com/books?id=U7ae3Y2idIkC&dq=Saudi+Arabian+stock+market:+influences&source=gbs_navlinks_s
Factbox-Political Risks to Watch in Saudi Arabia. 1 Apr 2011. Reuters News. Retrieved from: http://www.bestgrowthstock.com/stock-market-news/2011/04/01/factbox-political-risks-to-watch-in-saudi-arabia/
Arouri, Mohamed El Hedi and Rault, Christophe (2011) Oil Prices and Stock Markets: What Drives What in the Gulf Corporation Council Countries. ERF 17th Annual Conferences 20-22 Mar 2011. Renaissance Antalya Beach Resort & Spa, Turkey.
Wiesenthal, Joe (2011) Art Cashin On The Saudi Connection To Tuesday's Big Market Plunge. 2 Mar 2011. Retrieved from: http://www.businessinsider.com/art-cashin-march-2-2011-3#ixzz1JeThx0q7
Brazil's stock market [...] precise economic or political events that contributed to either a significant rise or fall in the Brazilian stock market for the years of 2001 and 2002.
While the events of September 11, 2001 had an effect on global economies as a whole, Brazil's economy in 2001 was already in a downward spiral by September. The Brazilian stock market ended up down 25% by the end of 2001, due mostly to a financial crisis in neighboring Argentina. The two countries' economies were closely tied -- too closely, and Brazil struggled to step away from Argentina's influence, so the value of their money fell, and the government cut spending, which helped aid the stock market's plunge. In addition, an energy shortage in June 2001 caused rationing, which resulted in lower usage and consumer confidence, and the stock market suffered. Experts had expected the market to peak at 20,000…
Edwards, Hugh L. "General Manager's Report 2002." Trinidad & Tobago Stock Exchange. 2002. 1 Oct. 2004.
-- . "General Manager's Report 2001." Trinidad & Tobago Stock Exchange. 2001. 1 Oct. 2004.
profit through investing on Stock Market
Generally, all over the world financial markets exemplify a state of intricate and inscrutable situation. These marketplaces are of immense significance in the western nations, where the constituents employ their expertise to invest and generate profit whilst formulating a pool of funds, statistics, derivatives, shares and calculation intricacy. These constituents or elements are those investment maestros who are the whole and sole performers of the elaborated function pertaining to the methodologies of these markets. These marketplaces also play an important role in facilitating the financially viable entities as well as the intellectual traditions. Even though being the most vital component of an economy, these marketplaces have not been fully acknowledged because; the constituents who are unswervingly gripped in the methodologies of these marketplaces, as well as those who endeavor at delineating these methodologies, still comprehend up to their better judgment the efficacy of these…
Abolafia, M. (1996a) Hyper-rational Gaming. Journal of Contemporary Ethnography 25(2): 226-250.
Abolafia, M. (1996b) Making Markets: Opportunism and Restraint on Wall Street. Cambridge: Harvard University Press.
Balvers, R.J., & Wu, Y. (2006). Momentum and mean reversion across national equity markets. Journal of Empirical Finance, 13, 24 -- 48.
Barber, B. And T. Odean, (1999) The courage of misguided convictions. Financial Analysts Journal 55(6): 41-56.
oil prices and the stock market. The relationship between oil prices and increases in costs to transportation, heating and production are reviewed, and the role of spiking oil prices on market uncertainty is discussed. Overall, higher oil prices are historically linked to declining stock market prices, and it seems reasonable to suggest that future stock market decreases will come from current increases in oil prices.
Stock market performance is strongly linked to oil prices. ecently, oil has hit new price records, and the stock market has declined in response. This trend follows the historical relationship between oil and stocks, which has seen sharply rising oil prices as a strong predictor of stock market declines. Such stock market declines can be linked with increased costs due to high oil prices, as well as general market uncertainty.
Oil Prices and the Stock Market
ecently, oil prices have hit historic highs, and stock…
E-Commerce Times. Record High Oil Prices Send Markets Lower, Financial News, 09/27/04 1:54 PM PT. 27 September 2004. http://www.ecommercetimes.com/story/36932.html
Evans, Stephen. Rising oil prices threaten U.S. economy. BBC News, May 19, 2004. 27 September 2004. http://news.bbc.co.uk/1/hi/business/3724357.stm
Leeb, Stephen and Leeb, Donna. (2004). The Oil Factor: How Oil Controls the Economy and Your Financial Future. Warner Business Books.
McMahon, Tim. (2004). Is Oil Predicting a Stock Market Crash? Financial Trend Forecaster. 27 September 2004. http://www.fintrend.com/ftf/Articles/OilCorrelation.asp
Pros of Investing in the Stock Market and the Increased Benefits it provides for lobal Stability.
One of the strongest areas of investing is the stock market. This is because it is known for providing above average historical returns. Evidence of this can be seen by looking no further than information that was collected by Anspach (2012). She found that the stock market has produced an average return since 1990 of 9.14%. This is higher than what most investors are earning in other asset classes.
As a result, these views are illustrating how investing in these areas will produce a larger overall return. To fully understand how this takes place requires examining the benefits of investing in the stock market and the merits that it is providing when it comes to global stability. This will be accomplished by focusing on: the advantages, the role that credit card debt will play…
Garman, Thomas, Personal Finance, Staten Island: Cengage Learning, 2011. Print
Khan, Arshad. Stock Investing for Everyone. New York: Wiley, 1999, Print
Manajin, Stephanie. "Want to be a Millionaire." Fool, 2012. Web. 30 May 2012
Trading on the stock market is supposed to be fair and the risks involved applied equally to everyone involved. However, when a person is in possession of material, nonpublic information that allows them to profit by trading in stocks, this is considered to be "insider trading" and illegal. In addition, if a person possesses material, nonpublic information and passes that information on to another individual who then profits by making stock trades based on the information, then this is considered "tipping" and is also illegal. In the case of United States v. Bhagat, while the government failed to prove that Mr. Bhagat made his purchases on Nvidia stock based on the material, nonpublic information he received about Nvidia's contract with Microsoft, the fact that he made his purchases approximately twenty minutes after the information was sent in an email made it likely that he was involved in insider trading. (United…
Medical Committee for Human Rights v. Securities and Exchange Commission. 139 U.S.
App. D.C. 226, 432 F.2d 659. (1970). Retrieved from https://supreme.justia.com/cases/federal/us/404/403/case.html
Securities and Exchange Commission v. Texas Gulf Sulfur Company. 41 F.2d 833.
(1968). Retrieved from http://law.justia.com/cases/federal/appellate-courts/F2/401/833/323889/
E-commerce, efficiency in terms of time and cost has been experienced by almost every sector of the economy. International markets came closer and economic participation in every market increased significantly as it became easier for buyers and sellers to communicate. This had also affected the Stock exchanges or the stock markets.
With the cyber world taking over the conventional corporate climate, in the recent past, online financial services, brokerage houses and trading portals sprang up. This trend not only triggered participation from existing investors but also attracted newer smaller investors. Moreover, the cyber fever also changed the way companies offer and sell stocks to the market.
Corporations are private sector business ventures with a limited liability. Moreover these businesses are incorporated and can issue stocks in order to generate finances. There are two major types of corporations: private limited company and public limited company. In a private limited company the…
Low, C.K. (2009). Cornerstone Investors and Initial Public Offerings on the Stock Exchange of Hong Kong. Fordham Journal of Corporate & Financial Law, 14(3), 639+. Retrieved July 14, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=5035974604
Lowes, R.L. (1997, April 14). Try a Do-it-yourself Public Offering. Medical Economics, 74, 50+. Retrieved July 14, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=5035387523
Oliver, S.M. (Ed.). (2004). Handbook of Corporate Communication and Public Relations: Pure and Applied. London: Routledge. Retrieved July 14, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=107988972
Schuck, P.H. (Ed.). (1991). Tort Law and the Public Interest: Competition, Innovation, and Consumer Welfare (1st ed.). New York: W.W. Norton. Retrieved July 14, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=26070786
One significant instance of failure in my career development experience came during my time as an investor. I had been studying finance and markets for some time, as I had always had an interest in how money could be made on the stock market. I was not looking to make millions but I did want to see if I could earn more on my savings by investing in a stock rather than earning next to nothing by keeping my money in a savings account that would pay practically zero percent interest. So I began researching the market. I wanted something that was priced cheap and that would more than likely go up as a result of news hitting the stands in short order. I purchased shares in Lionsgate Entertainment because this company had produced the hit movies The Hunger Games and the TV show Mad Men. I figured…
As with any of the big questions worth asking, there is no easy answer to whether the stock market is rigged. The real answer is both yes and no. On the one hand, the market has rules and regulations, oversight boards like the Securities and Exchange Commission, and is open for all investors to participate in on a potentially equal basis. On the other hand, the way the market works is clearly “unfair,” as Tepper puts it (1). Unfairness is built into the system because the actual point of sale is not something the ordinary investor is privy to—meaning the price of stocks is not a true reflection of investor supply and demand. This inherent unfairness built into the process of the stock market is why maverick developers like Brad Katsuyama has developed the IEX (Tepper 1). Abraham points out other reasons why the stock market methodologies remain unfair, “rigged,”…
Brazilian tock Market's operation and its strategy for expansion.
Use eight sources of information.
The BOVEPA plays an integral role in the economics of Brazil and the Latin American stock market system.
Brazilian tock Market
The Brazilian tock Market, better known as BOVEPA, the an Paulo tock Exchange was originally founded in 1890 and since then has provided services to the financial market and the Brazilian economy. Initially, BOVEPA and the other Brazilian exchanges came under the state government.
However, all that changed in 1965, when the Brazilian financial system and the capital markets became non-profit self-regulating institutions. The 1960 led to changes in the BOVEPA that has improved the quality of service and upgraded the technology platform making it more user friendly for investors.
The BOVEPA also implemented automated trading software using real-time trades via a computer network. This was an instrumental factor in introducing the options market…
http://www.bovespa.com.Background -- the Organization. http://www.bovespa.com.Background-Operating Structure. http://www.bovespa.com.Background-Markets and Indexes. http://www.bovespa.com.Background-Securities Traded. http://www.bovespa.com.The Organization-Self-Regulation. http://www.forbes.com ."Brazil Currency Steady, Stocks Rebound." Todd Benson. May 2003 http://www.citycomment.com."Brazilian Mega Deals." Anne McIvor. August 2002. http://www.bovespa.com.Background Page.
It is expected that the bond will mirror the performance of the S & P. 500. ("Transaction History," 2010)
November 24, 2010
On November 24th several more new purchases would take place to include: General Motors, erkshire Hathaway, the Fidelity Immediate Government Fund and the Strategic Advisors Income Fund.
General Motors was selected, because it could help to provide the portfolio with above average growth. The results were that that stock would see an increase of 1.4%. ("Transaction History," 2010)
erkshire Hathaway was purchased to provide the portfolio with stability and diversification. This investment is expected to outperform the major market averages. The results were up .96%.( "Transaction History," 2010)
The Fidelity Intermediate Government Fund was selected because of their focus on medium term Treasury investments. This is expected to underperform the market averages. The results were that the position declined by 2.55%. ("Transaction History," 2010)
Account Details. (2010). Stock Trak. Retrieved from: http://www.stocktrak.com/private/account/summary.aspx
Ford Posts 68% Rise in Third Quarter Income. (2010). MSNBC. Retrieved from: http://www.msnbc.msn.com/id/39845528/ns/business-autos/
Transaction History. (2010). Stock Trak. Retrieved from: http://www.stocktrak.com/private/account/transactionhistory.aspx
Kavilanliz, P. (2010). Black Friday. CNN Money. Retrieved from: http://money.cnn.com/2010/11/27/news/economy/Black_friday_2010_sales/
That being said, the overall risks to the portfolio will vary, depending upon the type of stock that is purchased and how much diversification is being utilized. ("What are the Main Types of Stock.," 2010)
How much does a stock contribute to the return of a portfolio?
Historically the average return of the S&P 500 has been 9.8% a year. (Swedroe, 2009) However, the overall impact of the return will depend upon: the underlying amounts of growth and dividends that are received. These two factors are important, because they can cause the total return of the portfolio to vary. As a result, the overall contribution of stocks, on the return of the portfolio; will depend upon the type of equity securities that are being purchased and the holding period.
Clearly, the underlying amounts of risks and rewards will depend upon a number of different factors. As far as risks are…
Market Efficient espect Set Information Impossible Makes Abnormal Profits
In his work, Fama argued that given the massive use of resources by the brokerage firm to conduct studies on trends in the industry, the effects of changes in interest rates on corporate balance sheets and expectations of managers and/or political analysts of the companies should be able to systematically beat a generic portfolio with the same risk characteristics.
Since, according to Fama, professional in every situation, the analyst has a fifty percent chance of beating the market; although its specific capabilities did not exist he would beat a lot of the market. The analyst did "help" the market to be efficient if all the investors, in fact, would hold portfolios composed of stock indices, would open up significant opportunities for professional traders to take advantage of the situation. But the movement of traders to that "new market" would…
Arrow, K.J., 1959. 'Toward a theory of price adjustment', in M. Abramovitz (ed.), The Allocation of Economic Resources, and Stanford: Stanford University Press, pp. 41 -- 51.
Aumann, R.J., 1964. "Markets with a Continuum of Traders," Econometrica, Vol. 32, No. 1/2, Jan. - Apr., pp. 39 -- 50.
Clifton, J.A., 1977. "Competition and the evolution of the capitalist mode of production," Cambridge Journal of Economics, vol. 1, no. 2, pp. 137 -- 151.
Frank, R., 2008. Microeconomics and Behavior 7th ed. (McGraw-Hill) ISBN 978-007-126349-8.
Statistics in the World of Stocks
Many students at various levels in mathematics at times find themselves asking the question, why do I need to learn this? It is admittedly true that many people will never really use algebra in their daily lives, and the complex world of statistics and probability also goes unutilized by many. Algebra, probability, and statistics can all be useful to everyone, in actuality, and more importantly there are specific instances where these areas of mathematics prove absolutely invaluable. When it comes to the stock market, many people try to use statistical models to predict when certain stocks are good values, or when they are poised to skyrocket investors to new fortunes, but there are also more sensible applications of certain probability and statistics concepts that are reasonable means of influencing stock-buying decisions. Applying a few basic methods of analysis to some elements of…
("Gates, Bill," 2007) the company is in fact considered a regional financial backbone, in the Seattle-edmond area where its world headquarters are. The whole region and to some extent the whole world takes notice when Microsoft announces financial strategies and changes or when stocks rise or fall.
The software maker said it would buy back $20 billion through a tender offer set to be completed on Aug. 17. The company said that its board of directors has also authorized the company to buy back up to $20 billion worth of stock through June 2011. The company said it has completed the $30 billion stock buyback announced two years ago. "With our share repurchase programs announcement today, we reaffirm our confidence and optimism in the long-term future of the company and continue to execute on our strategy of returning capital to shareholders," Microsoft Chief Financial Officer Chris Liddell said in a…
Bolten, S.E. (2000). Stock Market Cycles: A Practical Explanation. Westport, CT: Quorum Books. Retrieved August 29, 2009, from Questia database: http://www.questia.com/PM.qst?a=o&d=29180460
Fried, I. (July 20, 2006) Microsoft plans massive stock buyback, CNET News
Gates, Bill. (2007). In the Columbia Encyclopedia (6th ed.). New York: Columbia University Press. Retrieved August 29, 2009, from Questia database: http://www.questia.com/PM.qst?a=o&d=112860479
To ensure that none of this was taking place, many state regulatory commissions would set prices and monitor the industry. Then, during the 1980's is when deregulation would occur, as many economists felt that they were stifling economic growth. As a result, the different laws were changed, allowing for electric producers to have greater freedoms in: setting prices and determining how it would be distributed. With a host of electric companies, beginning to own others producers in different states and they began to actively trade it. This is important, because it shows how the overall level of government regulation would be reduced. Yet, the various state regulatory commissions would still be able to maintain oversight and control inside their borders. As a result, there was a reduction in the overall amount of regulations, while allowing certain controls to remain in place. When you put these different elements together, this meant…
Aharoni, Yair, 1997, 'Government Intervention in Services,' Changing Roles of State Intervention, State University of New York Press, Albany, pp. 3- 24.
Griffin, James, 2005, 'Electricity a Natural Monopoly,' Electricity Deregulation, University of Chicago Press, Chicago, pp. 2-5.
Klein, Jeffrey, 1996, 'Shall the Elite Inherit the Earth,' Mother Jones Magazine, pp. 3 -- 6.
Harvard Format. http://libguides.library.uwa.edu.au/data/files2/49275/Harvard%20LibGuide%20-%20All%20Examples%20PDF.pdf
Regardless of one's appetite for risk, it is essential that some diversification of assets is used to prevent 'losing' money by saving money in a bank account alone, although noninsured investments should not be concentrated on one area of the economy, to protect against potential losses.
Even in today's economic climate, investors should allocate some of their funds in safe, but higher-interest bearing sources. These might include certificates of deposits or CDs, which can be allocated into different accounts so the CDs mature at different times, to free up more of the saver's money. These safer investments may also include government bonds of stable governments and corporations, as well as preferred stock for companies that offer this option. Unlike CDs less than $250,000 in value, however, bonds and preferred stocks are not insured by the government.
The concept of the future value of money underlines the importance of saving in…
market values" UK Listed Companies evaluate companies Investor atios Profitability atios. With reference statement: require critically appraise importance market balance sheet UK listed companies critical assess a relevant range investor profitability ratios measuring performance.
Market value and balance sheet value
A British firm listed on the market is generally traded at its market value, regardless of its balance sheet value. At a simplistic level, the balance sheet value represents the value of the firm as it is computed within the organization and in terms of the company's resources, revenues and other internal values. The market value on the other hand is the value of the company as it is assigned by the multitude of players in the market, and which is often computed based on elements intrinsic to the market, such as profitability of the company, risks and so on.
At a more specific level, the two concepts…
2010, Investor ratios, Bized, http://www.bized.co.uk/compfact/ratios/investor2.htm last accessed on December 15, 2010
2010, Profitability ratios, Morningstar, http://news.morningstar.com/classroom2/course.asp?docId=145093&page=6&CN=COM last accessed on December 15, 2010
2010, Investopedia, http://www.investopedia.com last accessed on December 15, 2010
Investment tips: what are key investment ratios? Essortment, http://www.essortment.com/career/keyinvestmentr_sape.htm last accessed on December 15, 2010
Pharmaceutical industries have to operate in an environment that is highly competitive and subject to a wide variety of internal and external constraints. In recent times, there has been an increasing trend to reduce the cost of operation while competing with other companies that manufacture products that treat similar afflictions and ailments. The complexities in drug research and development and regulations have created an industry that is subject to intense pressure to perform. The amount of capital investment investments required to get a drug from conception, through clinical trials and into the market is enormous. The already high-strung pharmaceutical industry is increasingly investing greater amounts of resources in search of the next "blockbuster" drug that can help them gain market position and profits. Laws, regulations and patents are important to the industry while spending billions of dollars in ensuring the copyright of their products.
It is the intention of this…
Ansoff, H.I. (1957). Strategies for diversification. Harvard Business Review, 35(5), 113-124.
Ansoff, H.I. (1965). Corporate Strategy. New York, NY: McGraw-Hill.
Ashour, M.F., Obeidat, O., Barakat, H., & Tamimi, A. (2004). UAE Begins Examination of Patent Applications. Tamino.com. Retrieved January 18, 2004, from the World Wide Web: http://www.tamimi.com/lawupdate/2001-01/intprop.htm
Bain, J.S. (1954). Economies of scale, concentration, and the condition of entry in twenty manufacturing industries. American Economic Review, 44, 15-36.
right or wrong answer when it comes to evaluating discount vs. full-price stockbrokers. hat is right for one individual is based on his or her needs, and the context of the situation. In general, though, the discount brokers are probably a better value when considering a number of variables, including: free stock information provided on the orld ide eb, capital gains taxes, and stock brokers' motivations (Investitor website).
In order to understand why the discount brokerage firms are "generally" better, one has to understand the difference between the two. Discount brokerage houses are essentially "order takers." You tell them what trades you want to make, and they execute them for a very small commission (usually somewhere around $5-$7 dollars a trade) (FoolU website).
In many cases, signing up for one of the online discount brokerages will earn individual free trades, as will large-scale trading. The reason why these brokerage houses…
Discount Vs. Full Price Brokers." FoolU Website. Accessed June 4, 2003. http://www.fool.com/foolu/askfoolu/1999/askfoolu990120.htm
Investing in the Stock Market." Investitor Website. Accessed June 4, 2003. http://www.investitor.net/stocks.htm .
Lewis, Roy. "Capital Gains Tax Rates." Tax Center Website. Accesssed June 4, 2003. http://www.fool.com/taxes/2000/taxes000310.htm
Market Model Patterns of Change
Market Model Pattern of Change
The market model industry I research on is the rental movie industry, which the Blockbuster video was the dominant product. This industry has undergone through gigantic market change over many years. Hollywood video is the national competitor; however, they often compete with the local and regional movie rental industries. The use of the new technology has significantly led to the competition among different companies. The market model pattern of change shows that the industry has competitors or not, also, the costs in the company.
Explain the industry and outline the overall wave of change of the specific market structure
The Blockbuster video once dominated the movie rental industry; this has changed enormously due to the competition in the entertainment market. The evolution of the new technology has led to multiple competitions and has changed the consumers' purchase of the rental…
Blockbuster LLC, 47). Company Overview. Blockbuster Corporate.
Michael, R.J. (2011). Transaction and Strategies; Economics for Management. Mason, USA
The Motion Picture Association of America. (2011). Mpaa statement on strong showing of support for stop online piracy act. The Motion Picture Association of America. Washington, D.C.
Ford, A.(2009). Modeling the Environment, Second Edition.New York: Island Press
Market Model Changes
The medtech, or medical technology, industry is a large and intensely competitive industry that produces highly innovative medical devices for hospitals and other healthcare facilities in the effort to save lives and improve health for patients (Research, 2012). It is spread across different segments including, cardiology, oncology, neuro, orthopedic, and aesthetic devices. It relies largely on aging baby boomers, high unmet medical needs, and increased incidence of lifestyle diseases, including cardiovascular disease, diabetes, hypertension, and obesity.
The industry is being challenged by pricing concerns, hospital admissions and procedural volume, uncertainty concerning healthcare reform, Medicare reimbursement issues as agencies are looking for cost reduction measures, and regulatory overhang. There is a rise in patients deferring treatment in elective procedures. "One factor aligning economic and clinical forces: in the U.S., the number of medical practices owned by hospitals grew from 25% in 2005 to 50% in 2008" (practice, 2011).…
Blog, I. (2012, Mar 12). MedTech Industry Stock Outlook. Retrieved from Financial Content: http://markets.financialcontent.com/stocks/news/read/20832505/MedTech-Industry-Stock-Outlook
practice, B.G. (2011, Feb 9). Creating a new commercial model for the changing medtech market. Retrieved from Bain & Company: http://www.bain.com/publicatgions/articles/creating-a-commercial-model-for-changing-medtech-market.aspx
Research, Z.E. (2012, June 15). MedTech Industry Stock Outlook-June 2012-Zacks Analyst Interviews. Retrieved from Nasdaq: http://community.nasdaq.com/News/2012-06/medtech-industry-stock-outlook-june-2012-zachs-analysts-interviews.aspx ?
As a result, we received an execution price of $65.08.
First Energy was chosen, because it can provide the portfolio with stability. As, the company is focused primarily on: the distribution and production of electricity. These two elements are important, because this resource is always in demand regardless of shifts that are occurring in the economy. I selected this stock, because it can provide the portfolio with earnings stability and consistent dividends. During times when the markets are becoming very volatile, this will ensure that the value remains steady.
Time Warner was chosen due to the fact that: they own a large cable operation and they can benefit from the shifts to digital cable. This will ensure that the company is able to take advantage of the changes in how consumers want to be entertained. As, they are: demanding more services at home and they want them to be bundled…
Wang 93's Portfolio, 2011. Print.
Wang 93's Portfolio NYX, 2011. Print
MLA Format. http://owl.english.purdue.edu/owl/resource/747/01/
The first point that has to be looked into is the health of the company, Colorado Australia. The company is passing through a bad phase and this is not the time for a product launch as generally no new introduction can make money for a period of time after launch. When the company launching the product is itself in a relatively poor condition of finances, then it is less likely to take risks that will be required for the successful development of the new product. Here the situation is likely to be of a new brand in a new market, rather than a totally fresh launch. The company is already exporting substantial quantities and it is possible even the same item is being exported for sale by another organization under a different brand name. It may be possible that expansion of sale of quantities under that arrangement may…
"Before You Buy Hiking Boots" Retrieved from http://shoes.about.com/od/athleticshoes/bb/bybhikingboots.htm
Accessed 12 October 2005
"Colorado dashes hopes of retail recovery" (August 5, 2005) Retrieved from http://www.smh.com.au/news/Business/Colorado-dashes-hopes-of-retail-recovery/2005/08/05/1123125885090.html Accessed 11 October 2005
"Colorado Group Ltd.: (Australian Stock Exchange: CDO)" Retrieved from http://www.onesourceexpress.com/companyreports/default_ec.asp?keyid=44678842& camp=EC5001& GCID=C15112x004& ovchn=INK& ovcpn=International& ovcrn=onesource-international-1& ovtac=PIB Accessed 11 October 2005
In regard to the organizational structure, al-Mart Stores can be said to be organized by divisions. In this regard, we have al-Mart supercentres, Sam's Clubs etc. Currently, the company's president is Mr. Mike Duke. Other key management positions in the firm include the position of chief financial officer, vice chairman, chief executive officer-international operations, and chief executive officer- al-Mart U.S.. These key positions are currently held by Mr. Charles M. Holley Jr., Mr. Eduardo Castro-right, Mr. Doug McMillon and Mr. illiam S. Simon respectively.
"Stagnant ages, High Unemployment Slam al-Mart U.S. Sales: Domestic Sales at orld's Largest Retailer Post Two-Year Slump." (5/17/2011). (MSN n.p.)
Impact and Reason
In my own opinion, the news item above will bring about a decrease in the price of al-Mart's Store Stock. My reasoning in this case is that based on a decline in sales, investors will not be…
LaRocco. L. "Wal-Mart's Quiet Tax Haven." CNBC. N.p. Sept 23rd 2011. Web. 18th Oct 2011. http://www.cnbc.com/id/44627207
MSN. "Stagnant Wages, High Unemployment Slam Wal-Mart U.S. Sales: Domestic Sales at World's Largest Retailer Post Two-Year Slump (5/17/2011)." MSN. N.p. May 17th 2011. Web. 18th Oct 2011.
Rappeport, A. "Wal-Mart has First U.S. sales Rise in Two Years." Financial Times. N.p. Oct 12th 2011 Web. 18th Oct 2011.
Because of this, I would expect that U.S. Energy would have performed better, but that has not been the case. None of the individual holdings are overly dependent upon energy costs, such as we would see in the airline industry, so the performance of the portfolio does not seem to have been overly affected by the rise in energy prices.
The proper approach to investing involves diversifying, not only across different companies, but also across different sectors of the economy. In a given year, one sector of the economy will be up and another will be down. One-year large cap growth stocks will be up and foreign stocks will be down. The next year real estate will be up and large cap growth may be down. If we knew in advance which sectors would be on top, investing would be easy, but we don't. As a result, diversification across different…
Stocks have fluctuated in exactly the same way. The Home Depot went up 1.46% during the first week, while Lowe's managed to go even further: 1.74%. The situation was quite the same during the second week: 1.41 for the Home Depot, and 1.11% for Lowe. The upward trend was maintained for three weeks, but the growth ratio was only 0.5-0.57. The fourth week was not so good for the two companies. Stocks went down 0.6% and 0.86%, respectively. The fifth week was not better, as the downward trend continued, but the percentage change was not that significant: 0.5%-0.6%. The stocks are currently at higher levels: $41.06 for Home Depot and $65.22 for Lowe's. Morningstar analysts estimate the fair value of the two stocks at $44 and $62 respectively.
1. Morningstar Analyst report on the Home Depot www.morningstar.com
2. Morningstar Analyst report on Lowe's www.morningstar.com
3. Information on the business…
1. Morningstar Analyst report on the Home Depot www.morningstar.com
2. Morningstar Analyst report on Lowe's www.morningstar.com
3. Information on the business of Home Depot http://www.homedepot.com/HDUS/EN_US/corporate/about/about.shtml
4. Press article http://www.retailnet.com/story.cfm?ID=23316
Market Equilibration Process for Computer Peripherals
That Experience High Level of Cyclicality
The demand for computer peripherals in general for the inkjet and low-end nonimpact printers specifically has continually proven to be highly inelastic, where price reductions are not as effective as a continual stream of new product innovations. Having completed internships with peripherals manufacturers, this observation became very clear as product management and marketing teams continually tested the market equilibration process with price reductions, bundling suppliers and extending the overall warranty period as well. When the law of demand is applied to computer peripherals in general and inkjet printers specifically, the inelasticity of these markets becomes more pronounced and the ancillary process workflows emerge as the primary differentiators.
Analysis of Market Equilibration Process for Computer Peripherals
In the absence of highly elastic product demand and exceptional product differentiation that leads to unitary or highly elastic demand curves for products,…
Leijonhufvud, A. (2009). Limits to the equilibrating capabilities of market systems. Journal of Economic Interaction and Coordination, 4(2), 173-182.
Matsushima, N. (2004). Technology of upstream firms and equilibrium product differentiation. International Journal of Industrial Organization, 22(8), 1091-1114.
Secondary markets can help to bundle capital with the best managers of that capital, which can be used to generate capital in the primary markets, but in general the primary market is more efficient at allocating capital and of the two is the only one that truly generates new capital, as it funds actual production (Harris 2003).
The Hussman strategic growth fund most closely aligns with my need for long-term financial growth and security, as I am still many years away from retirement, I do not need to take any unnecessary risks in order to achieve more aggressive growth. Though such a fund might be an appropriate secondary investment, the bulk of my capital should be somewhere safer and more assured (Hussman 2009).
Haris, L. (2003). Trading and exchanges: market microstructure for practitioners. New York: Oxford University Press.
Hussman. (2009. Accessed 24 September 2009. http://www.hussmanfunds.com/…
Haris, L. (2003). Trading and exchanges: market microstructure for practitioners. New York: Oxford University Press.
Hussman. (2009. Accessed 24 September 2009. http://www.hussmanfunds.com/
Investopedia. (2009). Accessed 24 September 2009.
A third area Kudler needs to concentrate on is understanding the psychographic segments of their customers, including how they perceive themselves as part of a broader group (Wagner, 2010). This is essential for them to gain greater insight into how best to manage these key influencers as part of a broader panel and gain critical intelligence on how to position their business.
Finally, it's very critical that any retail business have exceptionally strong competitive insight and intelligence. This is an area of market research that Kudler Foods needs to concentrate on thoroughly., as they will over time attract greater competition on price alone. If the amateur and commercial chef market is an affluent one in this area of the country, other competitors will certainly begin approaching these customers with loyalty programs and advanced deals. Using social media and continued monitoring of competitors while watching these critical segments' shopping patterns, Kudler…
Bernoff, J., & Li, C.. (2008). Harnessing the Power of the Oh-So-Social Web. MIT Sloan Management Review, 49(3), 36-42. Retrieved July 26, 2011, from ABI/INFORM Global. (Document ID: 1458948591).
David W. Norton, & B. Joseph Pine II. (2009). Unique experiences: disruptive innovations offer customers more "time well spent." Strategy & Leadership, 37(6), 4-9. Retrieved July 26, 2011, from ABI/INFORM Global. (Document ID: 1920016781).
Megan Thompson, & John Stanton. (2010). A framework for implementing retail franchises internationally. Marketing Intelligence & Planning, 28(6), 689-705. Retrieved July 26, 2011, from ABI/INFORM Global. (Document ID: 2146332871).
Megan Thompson, & John Stanton. (2010). A framework for implementing retail franchises internationally. Marketing Intelligence & Planning, 28(6), 689-705. Retrieved July 26, 2011, from ABI/INFORM Global. (Document ID: 2146332871).
The Golden Cross is when a security's short-term moving average breaks through its long-term moving average. This would indicate a bull market on the horizon. ight now the 15-day moving average is 16491 and the 50-day moving average is 16370. The 100-day moving average is 16250, so unlike many of the other indicators, the Golden Cross indicates a bull market.
The graph tells me little, actually. It's better to regress these numbers to understand the nature of the correlation than to play the guessing game with a graph that covers the last forty years. The graph does tell me, however, that the growth rate of M1 does not correlate much with recessions. There are two major growths in M1 (in 2011 and in the mid-80s) that had no link to recession. There are also three that were linked, and in each there was a runup in M1 prior to…
IndexIndicators. (2014). NYSE Composite vs. Average 14-day RSI for NYSE stocks. IndexIndicators.com. Retrieved May 8, 2014 from http://www.indexindicators.com/charts/nyse-vs.-nyse-stocks-avg-14d-rsi-params-3y-x-x-x/
McClellan, T. (2014). Coppock Curve turns down. McClellan Financial Publications. Retrieved May 8, 2014 from http://www.mcoscillator.com/learning_center/weekly_chart/coppock_curve_turns_down/
International Financial Markets and Institutions:
Throughout the globe, today's landscape of international financial market and institutions has continued to experience several changes that require practitioners to examine new models. The need for practitioners to examine new models that are relevant to the state of these markets and institutions has also been necessitated by the recent events that contribute to financial crises, which have been very dramatic. Actually, the recent financial crisis has had significant impacts on the financial institutions and markets resulting in the need for changes. International financial markets and institutions have become an important aspect of economies because they affect daily life. This is primarily because they involve the huge flow of different types of funds in the entire economy that in turn impact the profits of businesses, production of goods and services, and economic well-being of countries. In some cases, the events in these institutions and markets…
Accounting Education (2010), International Capital Market, Accounting Education, viewed 7
Australian Securities Exchange (n.d.), Absolute Return Funds, Australian Securities Exchange,
viewed 7 June 2012,
High Stock Returns in Efficient Markets
"An efficient market is where market prices are an unbiased estimate of the true value of the investment" (Market Efficiency-Definitions and Tests). Market efficiency only requires that errors in market price be unbiased, not the market price to equal true value every time. Overvalue or undervalue of stock is random in an efficient market. There is an equal chance that stocks are overvalued or undervalued at any point in time.
Profit opportunities presented by overvalued and undervalued stock motivate investors to trade, which moves stock toward its intrustic value (Jones). Changes in stock prices in an efficient market should be random. Investors cannot earn abnormally high returns on stock in an efficient market when prices reflect the intrustic value.
If the stock market is efficient, some people can make very high returns by purchasing the stock at under the value of the intrustic stock…
Jones, S.L. & Netter, J.M. Efficient Capital Markets. 2008. website. 13 Feb 2013.
Market Efficiency-Definitions and Tests. n.d. website. 13 Feb 2013.
This is because, the efficiencies in the market are: providing no kind of leverage to these individuals. At which point, any kind of advantage that they may have would be eliminated. This is important, because it provides good insights, as to how efficient the markets really are. As a result, this is what will reduce the underlying returns every single year. The author is an economist with Oxford University. (urton 2005)
The article that was written by Chen (2005), discusses how the EMH theory can be able to provide the most relevant information surrounding stocks. Yet, when this was compared against computer-based programs, they were able to identify changes in prices at least 50% of the time. This is important, because it is showing how the changes in the expectations for stocks, can be more accurate when using various programs. Once this takes place, it meant that traders and investors…
Basu, S, 1977, 'Investment Performance of Common Stocks,' Journal of Finance, vol. 32, no. 3, 663 -- 682.
Bont, W, 1985, 'Does the Stock Market Overreact,' Journal of Finance, vol. 11, no. 30, 793 -- 804.
Brenner, M, 1977,'the Effect of Model,' Journal of Finance, vol. 32, no. 1, 57 -- 74.
Brenner, M, 1979,'Sensitivity of the Efficient Markets,' Journal of Finance, vol.34, no.4, 915 -- 933.
Indian Stock and Bond Markets
Do you think an investment in the Indian stock market is a good long-term investment?
The Indian stock market has experienced a number of fluctuations over the past 20 years or so that would suggest that investors might want to adopt a "wait-and-see" approach before making the plunge into these financial waters. For example, Schmidt and Hersh emphasize that, "The history of the operation of the Indian stock market has been dotted with brokers often unable to meet their commitments, allegations and proved instances of insider trading, and deliberate manipulation of stock prices by bears and bulls" (2000, p. 131). The prices for stocks listed on the Indian stock have experienced a number of highs and lows, with the most significant boom taking place during the period 1993 to 1995; however, although there have been some spikes, there has been a downward trend experienced since…
Kumar, R. (2007). Economic growth and volatility in Indian stock market: a critical analysis.
South Asian Journal of Management, 14(2), 47-48.
Schmidt, J.D. & Hersh, J. (2000). Globalization and social change. London: Routledge.
Sen, P., Bahel, N. & Ranjan, S. (2003, July). Developing the Indian debt capital markets:
In terms of size, the largest stock market is, by far, represented by NYSE, which trades the highest volumes of shares and which has the highest value of the transactions.
The New York Stock Exchange and the Brazilian Exchange are both companies created as a result of mergers between two other entities, namely Sao Paolo Stock Exchange and the Brazilian Mercantile and Futures Exchange in the case of BM&F Bovespa and the NYSE Group and Euronext N.V. In the case of the New York Stock Exchange. The Mexican Stock Exchange however is a public institution.
The three institutions serve similar functions, yet the differences reside in the areas they serve, the volume of traded shares, the number of investors and other indices which show the differences in size and strength between NYSE and the two other markets.
All in all, the current project has assessed two important international aspects, namely…
(2012). G20 Summit in Los Cabos, Mexico: Key outcomes. Federal Ministry of Finance. http://www.bundesfinanzministerium.de/Content/EN/Standardartikel/Topics/International_affairs/Articles/2012-06-21-g20-los-cabos.html accessed on September 17, 2012
Kirton, J., Kulik, J; (2012).The shortcomings of the G20 Los Cabos Summit. University of Toronto. http://www.g20.utoronto.ca/analysis/120627-kirton-kulik-shortcomings.html accessed on September 17, 2012
(2012). Website of the Brazilian Stock Exchange. www.bmfbovespa.com.b accessed on September 19, 2012
(2012). Website of the Mexican Stock Exchange. http://www.bmv.com.mx / accessed on September 19, 2012
Stock exchange: An exchange where shares of stock and common stock are sold and purchased. Common exchanges are the New York Stock Exchange and American Stock Exchange.
Secured bonds: A secured bond is a bond issued with the backing of collateral. A common example of a secured bond would be a mortgage bond. If the bond is defaulted on, the title of the collateral is transferred to the bondholder.
Factoring: Factoring occurs when a company sells their accounts receivable, or customer's debt, to another entity at a discount. The entity then assumes all credit risk of the account debtors, and receives the cash as these debts are settled. This process is also known as accounts receivable financing.
Trade credit: Trade credit refers to a company's open account arrangement with vendors. As the company makes purchases, the vendor debits the company's account, and bills them for this credit transaction.
Investorwords.com. Retrieved Dec 7, 2006 from Investor Words. Website: http://www.investorwords.com .
International Equity Markets
esidential investment property performed better than all investments in the last decade. Australian bonds were the second best performing asset class returning 6.4% p.a. Australian shares were the third highest with 6.1% p.a (Australian Securities Exchange, 2012). Within the same period, the Global eal Estate Investment Trust (EITS) outperformed the Australian EITs. Unhedged oversea shares achieved the lowest return of any asset class over the 10-year period. Had any investor hedged his overseas shares investment he would have received 3.7% p.a. And 6.7% p.a. over the past 10 and 20 years (Australian Securities Exchange, 2012). These were the results before tax but after costs. The results after tax and after costs for the past decade indicated that the residential property outperformed all other asset classes at the lowest and highest marginal tax rates with returns of 7.2% and 5.8% p.a. respectively (Australian Securities Exchange, 2012). Within that…
Australian Securities Exchange (2012). Long-Term Investing Report. Retrieved from http://www.asx.com.au/documents/products/ASX_Report_2012.pdf
Dwinnel, T. (2007). Self-Directed Portfolio Advantages/Disadvantages. Retrieved from http://selfinvestors.com/tradingstocks/news/self-directed-portfolio-advantagesdisadvantages/
Piotrowski, T. (2013). Australian Stock Market. Retrieved from http://www.comsec.com.au/Public/NewsAndResearch/AusStockMarketreports.aspx
Effect of the recession on upon financial market, the real economy and over everyday lives
ecession is defined as the economic slowdown or decline characterized by slowing down of trade, a magnitude decline in the GDP, and a decrease in employment usually lasting between 6 months to a year. This was the situation in the U.S.A. The hardest times being from 2008 through 2009 and the early months of 2010. America is still recovering from the effects of the recession that the country experienced from 2007 to 2009.
The slow down in economy triggered a massive job loss and unemployment rates that shot through the roof, the prices went up and a great deal of uncertainty rippled through the country. This situation has now seen a reverse trend albeit at a slower rate than was expected by many. The unemployment rate in November 2011 fell by 0.4% to 8.6%…
Amitabh Shukia, (2009). Top 5 major Economic Effects of Recession on Economy.
Retrieved May 13, 2012 from http://www.paggu.com/business/world-economy/top-5-major-economic-effects-of-recession-on-economy/
Browder, Laura, (1998). Rousing the Nation: Radical Culture in Depression America.
Amherst, MA: University of Massachusetts Press.
(Der Hovanesian, 2010)
Increased Promotion of Discounted mortgages.
The way that subprime lending practices, and some call predatory lending practices affect the housing market has yet to be realized on such a large scale, as these tactics have always been carefully controlled by lending institutions, due in large part to their historical long-range view. Subprime lending on the other hand is fundamentally not a long-term view practice; it is a short-term tactic that is now being dealt with on a massive scale as foreclosures mount and more and more families see foreclosure looming in their future and more and more banks take on this debt, with the added burden of holding on to mortgages that far exceed the new depleted value of homes as the market corrects naturally from the housing bubble. The marketing for such subprime lending was absolutely saturated as nearly every individual was admonished to buy a…
"Construction. Country Profile. United States," the Economist Intelligence Unit Limited (2007), p42-43, Retrieved from Database Business Search Premier December 4, 2010: http://search.ebscohost.com/login.aspx?direct=true&db=buh&an=25830278&loginpage=Login.asp&site=ehost-live
Der Hovanesian, M. (2006). Nightmare Mortgages. BusinessWeek, (4002), 79-80. Retrieved from Business Source Premier database December 10, 2010 http://0-search.ebscohost.com.library.pcc.edu/login.aspx?direct=true&db=buh&an=22374294&site=ehost-live
Gopal, Prashant (November 29, 2007) Northeast Home Prices Remain Strong. Business Week Online, 11/29/2007, p1, Retrieved from Database Business Search Premier December 4, 2010: http://search.ebscohost.com/login.aspx?direct=true&db=buh&an=27673398&loginpage=Login.asp&site=ehost-live
Killelea, P. (Dec, 1, 2010) Housing crash continues -- it's a terrible time to buy an expensive house: Why? Retrieved December 10, 2010 from http://patrick.net/housing/crash.html
Technical Analysis in the Implication of Efficient Market Hypothesis on Silver Market
The thesis is for the study of simple commonly used technical trading rules, which are applied on silver market. It covers years 1989 to 2005. A famous study carried out by Lakonishok, Lebaon and in year, 1992 has clearly shown that technical analysis can lead to abnormal prices when compared with buy-and-hold strategy. Other studies have been carried out and found out that technical trading rules cannot over-rule passive investment management strategy. The study uses Brock et al.'s methodology. Several trading rules are discussed (Dawson & Steeley 2003).
In financial theory, efficiency of financial silver market is highly disputed. This has led to many attempts to explain efficiency of silver markets. Eugene.F. Fama formulated the most famous definition in 1970 referred to as the, Efficient Silver market Hypothesis (EHM). The basis of the hypothesis is that…
Alexander, S.S. (1964) 'Price Movements in Speculative Markets: Trends or Random Walks'. Industrial management Review 5 (2), 25-46
Brock, W., Lakonishok, J., & LeBaron, B. (1992) 'Simple Technical Trading Rules and the Stochastic Properties of Stock Returns'. Journal of finance 4, (5), 1731-1764
Chang, P.H., & Osler, C.L. (1999) 'Methodical Madness: Technical Analysis and the Irrationality of Exchange Rate Forecasts'. Economic Journal 109 (458), 636-661
Dawson, E.R., & Steeley, J. (2003) 'On the Existence of Visual Technical Patterns in the Uk Stock Market'. Journal of Business Finance and Accounting 30 (1-2), 263-293
(Dow Jones and Company, 2009). The DJIA can be used in three principal ways: as a yardstick, as a barometer, or as an investment.
When the DJIA is used as a yardstick, the goal is to measure performance from one period of time to another:
The most common use of an index by investors is to evaluate the performance of their own portfolios on a monthly or quarterly basis. This is the "benchmark" function of an index, and it constitutes the bogey that many investors try to beat with individual stock picks or with mutual funds. There is no official benchmark for the stock market. Each investor chooses his or her own. The only logical requirement is that the benchmark chosen should represent the part of the stock market that is targeted by the investor's portfolio. For example, if the investor dabbles in large stocks from a variety of industries,…
H.J. Heinz Co. 2009. Shareholder Information. H.J. Heinz Company. Available from:
http://heinz.com/our-company/investor-relations/shareholder-information.aspx [August 28, 2009].
Dow Jones and Company. 2009. About the Averages: Overview. New York: Dow Jones and Company. Available from: http://www.djaverages.com/?view=about&page=overview [August 28, 2009].
E*Trade Financial Corp. 2009. Pricing. E*Trade Financial Corp. Available from:
Executive Stock Option Plans
"If the company does not do better than its competitors, but the stock market goes up, executives do very well from their stock options. This makes no sense." Discuss viewpoint. Can you think of alternatives to the usual executive option plan that take the viewpoint into account?
Executive stock options are performance-based incentive plans that became popular in the 1950s and 1960s. They declined due to the stock market crash of the 1970s, but returned aggressively returned in the 1990s (Kole, 1997). Today, most companies grant stock options to their top officers as part of executive compensation, along with salary and bonuses. Options that are awarded as part of a compensation package can be very valuable to executives when stocks are performing well. The challenge comes in when stock value is realized for executives even when a company is not faring well at all. This is…
Cicero, D.C. (2009). The manipulation of executive stock option exercise strategies: Information timing and backdating. Journal of Finance, 64(6), 2627 -- 2663.
Collins, D.W., Gong, G., & Li, H. (2009). Corporate Governance and Backdating of Executive Stock Options. Contemporary Accounting Research, 26(2), 403-445.
Hamilton, S. And Wise, D. (2008). Adding performance criteria to your stock options. Hay Group. Retrieved from http://188.8.131.52/haygroupusmkting/e_article001162460.cfm.
Hess, D. (2012). More Stock Rewards Tied To Performance. Crain's New York Business, 28(31), 0015.
Apple Inc. Stock
In 2017, AAPL has performed quite well. It started the year off at $115 and today is selling for $170. 2017 has been a great year for stocks, with the election of President Trump seeming to have a lot to do with the rise in equities across the board, as the market has expected the President to introduce tax cuts that would be good for businesses like Apple. I was attracted specifically to Apple because I am an Apple user, enjoy the products, have many friends who enjoy the products and think it is a great brand to be a part of. I think that it will continue to perform well thanks to the creative forces within the company and the good leadership at the top of the company.
I bought AAPL at $156 and sold at $174 for an 11.5% gain. I purchased the stock because…
nvestments: Stock Selection
On March 9, 2009 the stock market settled on a 12-year closing low with the Dow Jones ndustrial Average (DJA), a barometer of the economy and stock market trajectory, closing at 6,547.05. (Twin, A. March 9, 2009). The precipitous plunge for the DJA from an "all-time high of 14,164.53" (Twin, A. October 9, 2007) reached on October 9, 2007 marked the timeline of the country's worst recession since the Great Depression. From the historic lows however, the market has rebounded dramatically closing at 12,105.78 on February 23, 2011, a gain of over 75% from the March lows (CNBC.com. February 23, 2011). The vicissitudes of the stock market over the past three plus years limn the debate over whether an investor who is risk averse would choose to invest in a stock market in which all stocks rise and fall together, or a market in which individual stocks…
Investors are marked by two extremes, the active investor who tracks, analyzes, and disseminates information on the companies in their investment portfolio, the economy, and global financial news which may influence the direction of their stock investments. At the other extreme is the investor who is socking away their five percent contribution with company match into their 401K. This investor cedes to expert portfolio managers, or trusts in the long run upward trend of equities as defined in index funds: S&P 500, Wilshire, and DJIA. While there are investors at both extremes the vast majority fall at some point on the spectrum, engaged but not able to fully commit the time or resources to portfolio management.
In this context the risk-averse investor will likely fall in with the preponderance of investors who have investment portfolios but are not actively managing them. The investor's portfolio may have individual stocks, mutual funds, or index funds. Which leads to the question, which environment would an investor desire to be in to attain their goal of reduced risk concomitant with acceptable return? The answer ironically comes from the same source, yet at bifurcated ends of an investment philosophy.
Warren Buffett considered the world's most accomplished and successful investor for over fifty years posits that a risk-averse individual could reach their investment objectives in either economic environment. In 2009, Warren Buffett entered into an agreement to purchase the remaining shares of Burlington Northern Railroad which his firm Berkshire Hathaway did not already own. His rationale for the purchase was simple "I basically believe this country will prosper and you'll have more people moving more goods 10 and 20 and 30 years from now, and the rails should benefit; it's a bet on the country, basically" (Crippen, A. November 3, 2009). This statement defines an investment strategy which suggests that over the long-term the stock market will generally move higher, the rising tide lifts all boats metaphor. Yes, stocks will fall, sometimes dramatically, across
Components of a stock's realized return are distributions, dividends, bonds, and share price appreciation. Some kinds of stocks also offer income tax write-offs.
The characteristics of a realized return, in short, are the quantity of actual gains that is made on the value of a portfolio over a specific period of time. In other words, how much value one has received in terms of returns / gains as demonstrated in one's portfolio as a whole.
The realized return considers the profitable returns of the each of the assets contained in one's portfolios as well as each of the losses of particular assets incurred during that specific period, as a result of flucturtaitons that occurred to the market of particular assets. These are the components of each of the realized returns associated with each individual asset that is held in the portfolio.
Calculating the rate of return would enable the investor…
As Mokoaleli-Mokoteli et al. (2009) point out, though, previous research has confirmed that while it is accurate to suggest that analysts provide optimistic reports on the majority of the stocks they include in their analytical portfolios, such recommendations do not routinely affect the market in any substantive way. According to these researchers, "After accounting for risk and transaction costs, investors do not earn better than average returns from following analysts' stock recommendations" (Mokoaleli-Mokoteli et al., 2009, p. 388). There is also the matter of the human propensity to be overly optimistic in those situations where there are complex issues involved, a tendency that has also been well documented in the scholarly research (Mokoaleli-Mokoteli et al., 2009). According to Mokoaleli-Mokoteli and his colleagues, "Both analyst overoptimism, as measured by the tone of their report, and conflicts of interest distinguish between new buy and new sell recommendations. This is consistent with the…
Cao, J. & Kohlbeck, M. (2011). Analyst quality, optimistic bias, and reactions to major news. Journal of Accounting, Auditing & Finance, 26(3), 502 -- 526.
Mokoaleli-Mokoteli, T., Taffler, R.J. & Agarwal, V. (2009, April/May). Behavioural bias and conflicts of interest in analyst stock recommendations. Journal of Business
Finance & Accounting, 36(3) & (4), 384 -- 418.
due to changes in the economical, financial, political and technological changes, the capital markets across the world are highly influenced by the changes. As compared to the past, the development in the financial sector has been observed to be at the highest rates. In order to understand and analyze the changes in the global capital markets the below report has been constructed.
Based on the theme idea, which is the change in the capital market due to many factors and elements, the report below tends to discuss and analyse the impacts of financial deregulation and capital control on financial globalization and international diversification. This will allow understanding of how these two elements are supporting the financial globalization. A part from this, the report will also analyze the role of financial innovation and advancements and technologies on international investments. Moreover, the risks and benefits that are associated with the carry trade…
Buch CM, 2004, Globalization of Financial Markets: Causes of Incomplete Integration and Consequences for Economic Policy, Springer, Germany
Collier P & Dollar D, 2002, Globalization, Growth & Poverty, Oxford University Press, GB
Henderson C, 2006, Currency Strategy, John Wiley & Sons, USA
Lien K, 2009, Day Trading and Swing Trading the Currency Market, 2nd Edition, John Wiley & Sons, Canada
VIX is a measure of the market's expectations for 30-day volatility, usually of a broad index like the S&P 500. The VIX is calculated using the prices of a variety of options on the index. The implied volatility of these options is used, and the VIX is sometimes referred to as a fear gauge and a measure of overall market risk (Investopedia, 2012).
There are two versions of the VIX. The first is for the S&P 500 and the second is for the S&P 100. The former is considered to be more representative of the broad market than the latter (Bail, no date). Options are priced, of course, with a mix of risk premium and time value. For market index options, that risk is assumed to simply be market risk. Therefore, options on that will contain a time value and a market risk premium. It is the latter that is…
Bail, M. (no date). Measuring stock market volatility. The Daily Reckoning. Retrieved March 12, 2012 from http://dailyreckoning.com/measuring-stock-market-volatility/
Investopedia. (2012). Definition of VIX. Investopedia. Retrieved March 12, 2012 from
efficient market hypothesis and its relation to securities prices, their response to new market information, investor opportunities, and behavioral finance challenges.
hat does the efficient market hypothesis say about a) securities prices?
An efficient market is one in which "the market price of a security is an unbiased estimate of its intrinsic value" (Chandra, 2008). That is not to say that the market price for a security will equal its intrinsic value all the time. But what it does say is that there will be errors in market prices but they are not biased; and it does also say that while the price of securities can and will diverge from the intrinsic value of the securities but that deviation will be (in most cases) random. The divergence of the price from the intrinsic value will not be linked "with any observable variable" (Chandra, 422).
Because the deviations of the market…
Beggs, Jodi. "The Efficient Markets Hypothesis." About.com. Retrieved July 29, 2014, from http://economics.about.com . 2011.
Chandra, Prasanna. Financial Management. Delhi, India: Tata McGraw-Hill Education, 2008.
Kiplinger. "Can you beat the stock averages? Whole-house fans can cut cooling costs.
Singles need estate plans, too." Changing Times. 1980.