Stock Price Essays (Examples)

Price Call Models

Black-Scholes Model and the Binomial Model are some of the widely used price call options. Despite the fact that these two models share the same theoretical foundation and assumptions like the Brownian motion theory and risk neutral valuation, they happen to have some notable differences (endleman & Bartter, 1979).

The Black-Scholes model is basically used to calculate a theoretical call price. This call price ignores dividends paid during the life of the call option. Some of the determinants of the option price include stock price (S), strike price (X), volatility (v), time to expiration (t), and short-term interest rate (r) (endleman & Bartter, 1979). This model has got some assumptions. One of the assumptions is that the stock pays no dividend during the option's life. This assumption is a serious limitation of the model considering that companies do pay dividends to their shareholders (endleman & Bartter, 1979).…

References List

Conroy, R.M. (2003). Binomial Option Pricing. Retrieved August 27, 2013 from http://faculty.darden.virginia.edu/conroyb/derivatives/Binomial%20Option%20Pricing%

20_f-0943_.pdf

Rendleman, R. & Bartter, B. (1979). Two State Option Pricing. Journal of Finance, 34 (1979),

Stock Stats

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…

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…

Bibliography

Diversification. (2010). Invest Words. Retrieved from:  

("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…

References

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

 http://news.cnet.com/Microsoft-plans-massive-stock-buyback/2100-1014_3-6096631.html 

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

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.

2.

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…

References

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/

It was first proposed in 1979 and uses a "discrete time" or lattice-based model of the way price varies over time -- without using closed form solutions (Cox, et al., 1979). In actual usage, the BOPM is quite widely used because it handles a wide variety of conditions that other models do not account for -- largely because it is based on the description of an underlying instrument over a longer period of time, as opposed to a single point without a large number of variables. Scholars say that it is computationally slower than the Black-Scholes formula, but more accurate, specifically for longer-dated options on securities that have dividend payments, trade in multiple securities, or have a number of complicated features within their variables. The BOPM model works by tracing the options key underlying variables through a lattice tree, which identifies steps between variables over time. For example, each node…

REFERENCES

Black, F. And Scholes, M. (1973). The Pricing of Options and Corporate Liabilities. Journal of Political Economy. 81 (3): 637-54, Retrieved May 2013 from:  http://www.cs.princeton.edu/courses/archive/fall09/cos323/papers/black_scholes73.pdf 

Conroy, R. (2003). Binomial Option Pricing. Darden Graduate School -- University of Virginia. Retrieved May 2013 from:  http://faculty.darden.virginia.edu/conroyb/derivatives/Binomial%20Option%20Pricing%20_f-0943_.pdf 

Cox, J., et al. (1979). Option Pricing: A Simplified Approach. Journal of Financial Economics. 7 (2): 229-63. Retrieved May 2013 from:  http://fisher.osu.edu/~fellingham_1/seminar/CRR79.pdf 

Friedman, D. (1990). Price Theory. Retrieved May 2013 from:  http://www.daviddfriedman.com/Academic/Price_Theory/PThy_ToC.html

alt Disney Company (DIS)

• Fundamentals - the company's business, is it financially sound? Is it growing?

Per their earnings amounts for Disney, the answer is that they are growing. They are indeed fairly financially sound, but their overall revenues are not doing all that well. Over the last three full years, revenue has grown at a clip of about $3 billion a year as they were at $42.2 billion in 2012, $45 billion in 2013 and $48.8 billion in 2014. Gross profit grew at a good clip over that same time frame, going from $18.8 billion in 2012, $20 billion in 2013 and $22.3 billion in 2014. The proportion of gross profit to total revenue did edge up slightly, albeit by about one percent. Net income has grown at about a billion per year, so it too is looking good. Total assets are growing (about five billion a year…

While the Dow sank and then recovered to its original levels, Immunogen has both done the opposite and it has NOT returned to its original level, although that would be a good thing since the raise in price is a good thing. The price started in the $12.75 range five days ago and then shot up quite quickly until it peaked at nearly $15 a share (a raise of nearly a fifth as compared to the starting point) and then fell very quickly on Tuesday until it bottomed out at $14.00. The price then fluttered a bit between $14.00 and $14.50 and sits at $14.23 as of June 10th. It's about half a buck (or 4.2%) higher it was five days ago but it's been higher very recently. Zooming out to six months tells a very different story. The stock price absolutely soared (it rose about five bucks….about a third) in early June before tapering off and has bounced between $14 and $15 then. Prior to that huge spike, its highest price since the turn of the year was about $10. The reason for the spike is revealed in the headlines about Immunogen in that they apparently had very positive results with one of their ovarian cancer treatments. This news breaking happened on June 1st…right when the spike happened. Not much has been said about them since so this explains why the price is fairly stable but does not explain its activity that is different from the Dow average.

 http://finance.yahoo.com/q?s=IMGN 

 http://finance.yahoo.com/q/co?s=IMGN+Competitors

Part 8

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.

Part 9

Headline 1

"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…

Works Cited

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.

 http://www.msnbc.msn.com/id/43058535/ns/business-retail/#.Tp-zZrLPzoM 

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…

Stock Exchanges

NYSE & NASDAQ

Generally speaking, and with many notable exceptions, the fundamental difference between the companies listed and traded on the New York Stock Exchange and the NASDAQ is that the NASDAQ is home to many technology firms and other more volatile companies, while the NYSE is where most of the major industrial companies and so-called "blue-chip" companies are traded. here is a broad price range and performance record for the stocks of both exchanges, and their ups and downs are most often in alignment (increasingly so as the period of examination is extended), meaning that the perceived differences and the real differences in the companies that make up each exchange might be exaggerated in terms of the effect they have on the actual performance of the stocks being traded. A look at two individual companies, each listed on one of these exchanges, yields more contrast than an…

Tim Hortons, Inc., a Canadian-based donut and coffee chain, is traded on the NYSE under the symbol THI. On September 13th, 2011, THI stock had a closing price of $45.92, a 52-week price range of $35.80 to $51.04, and a volume of 481,700 was traded; the P/E Ratio was 12.39 and the Earnings-per-share were $3.71. On the Nasdaq, the chip maker Nvidia (which trades as NVDA) is a fairly typical stock in many ways; the same figures for this stock on the same date of September 13th are a closing price of $14.52, 52-week price range of $10.30 to $26.17, trading volume of 44,257,800, a P/E Ratio of 16.17 and Earnings-per-share of $0.90. Tim Hortins trades at a higher price with much higher earnings and at a lower volume; Nvidia is more volatile and has a much higher trading volume with lower earnings and a higher P/E Ratio.

The balance sheet of a given company tells us about its current liquidity -- what its assets are compared to its liabilities and its equity. In other words, the balance sheet breaks down (into rather large components) the various holdings of the company in terms of its cash, property and equipment, collectable accounts, and other elements of the company worth a real dollar value, compared with the companies outstanding debts, losses from depreciation, and the amount of money that has been invested in the company from its owners -- the equity it would need to theoretically pay back to investors if the company were to sell all of its assets to pay its liabilities. The general rule of accounting is that assets always equals liabilities plus equity. The income statement helps to inform the balance sheet to some degree by presenting information regarding how money comes into and goes out of the company, listing (again in rather large components) the sources and amounts of revenue as well as the expenses that the company incurs during its operations. This can help investors determine how profitable the company is and is likely to be, based on how revenues compare to expenses and what projections are for changes in both areas of the income statement.

It is impossible to predict with any real certainty what companies will post returns over any period of time, or how consistent those returns will be. Selecting three individual stocks that will have increasing weekly returns through October would take a great deal of experience and calculation, and even then would ultimately rely on at least some level of guesswork.

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.

Stocks

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)

Mutual Funds

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)

The…

Bibliography

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/

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…

Bibliography

Wang 93's Portfolio, 2011. Print.

Wang 93's Portfolio NYX, 2011. Print

MLA Format.  http://owl.english.purdue.edu/owl/resource/747/01/

To avoid repeating negative historical experiences, regulatory regimes need to block the control and domination by networks/platforms. In the report, "Infrastructure and Development: A Critical Appraisal of the Macro Level Literature," Stephane Straub (2007) reported that at times, in some developing companies, "the hope of getting a fixed-line installed is a distant and costly dream" (p. 4). Meantime, the primary option for the individuals waiting for fixed-line telecommunications services would likely be having to us a much too expensive cell phone.

In 2010, much of the fixed-line telecom industry faces growing threats from cable and wireless service competitors.

As the writer of the quote introducing the study section pointed out, more firms are realizing "a cellular wireless solution" generally provides "more stability than the usual wired connections… [and serves as] a valuable asset built for the long haul" ("Lincolnshire Drainage Board…," 2010, ¶ 9). In the book, Integration in Asia…

REFERENCES

Ahmadnezhad, E. (2009). Research Design Mixed Methods. PPt; Tehran University of Medical

Sciences. Retrieved February 22, 2010 from www.pitt.edu/~super4/36011

37001/36411.ppt

Campbell, D.J. & Craig, T. (2005). Organisations and the business environment. Oxford, UK:

The exclusivity of these higher-end products and their cost structures also are deliberately now being created to ensure barriers to entry from mass merchandisers. The threat of a mass merchandiser dominating the supply chain and driving down costs to sell on brand equity alone continues to force marketers of key brands in this industry to concentrate on defensible differentiation. As a result of all these strategies and the inherent structure of this industry the price elasticity of high-end cotton apparel continues to be protected from becoming too price-inelastic over time.

Total evenue Implications

Clearly the revenue implications of managing products with low price elasticity as toys are require an inordinate level of supply chain, distribution and logistics efficiency as the per-unit margins are already under severe pressure. For products that have higher levels of price elasticity there is the benefit of typically greater gross margins yet the constraint of longer…

References

Rob Docters, Christine Durman, Tracy Korman, Bert Schefers. 2008. The neglected demand curve: how to build one and how to benefit. The Journal of Business Strategy 29, no. 5 (September 1): 19-25.  http://www.proquest.com  (Accessed December 21, 2008).

Fadiga, Mohamadou Lamine "United States consumer demand for cotton apparel: Implications for the apparel industry." Ph.D. diss., Texas Tech University (2003). In ABI/INFORM Global [database online]; available at

Telephone, wireless, and internet communications is becoming increasingly critical to simply live and function in modern society and commerce. However, the volatility of the industry might make certain aspects of investing in any telecommunications company dicey -- competition is likely to be fierce in upcoming years, and also a new form of technology developed by a rival company might weaken at&T's competitive edge. Not even the most perfect formula can predict changes in technology or a new regulatory environment that may affect the price of a stock.

In the short-term, at&T looks strong, making it a good bankable retirement stock, although its price is quite high. A wealthy investor like Beebee with money to burn might want to select a slightly more risky company, meaning that it might not be the best choice for him. Also, Beebee seems to have a guaranteed income not based in investments at all, but…

Works Cited

Derivatives Explained." Financial Pipeline. Retrieved 18 Nov 2007 at  http://www.finpipe.com/derivatives2.htm 

Preferred vs. Common Stock." Created by Ameritrade in 1999. Updated in 2003. Retrieved 18 Nov 2007 at  http://www.ameritradefinancial.com/educationv2/fhtml/stocksfunds/prevscom.fhtml#overview_preferred

2% (Yahoo 2009). This is significantly under both the industry average and the Standard & Poor 500 Performance Index, but the company remains financially strong and has paid a cash dividend on shares every quarter for the past four years (Yahoo 2009). These dividends have actually increased every year, including 2008 and so far in 2009, despite the worse performance brought on by the recession (Yahoo 2009). At $60.20, the stock is near its high-point for the year, but with things picking up again it is likely to continue rising, though the winter months and the attendant reduction in sales might lead to a more opportune moment to buy.

Sean P. Hennessy is Sherwin Williams Chief Financial Officer, and has been in that post since 2001. He also served as the company's treasurer for a year during that period, and has been with the company since 1984. Such solidity and…

References

Sherwin Williams (2009). Investor relations website. Accessed 31 August 2009.  http://www.sherwin-williams.com/about/investor-relations/corporate-governance/corporate-officers/index.jsp 

Yahoo! Stcok Screener. (2009). "Sherwin Williams." Accessed 31 August 2009.  http://finance.yahoo.com/q?s=SHW&d=t

Even if Bristol-Squib Meyers is not directly implicated in all of the cases surrounding this issue, fears about the over all health of the industry will affect stock prices. And finally, there is increased consumer outrage about drug costs and pressure to change current regulations about providing effective health care to Americans. Whatever the long-term impact upon the industry, the government is likely to have to devote considerable resources to health care reform in the near future. Changes in regulation, whatever they are, will make pharmaceutical stocks very volatile for the next 5-7 years.

Finally, the particularly negative publicity surrounding ImClone, justified or not, will negatively impact stock prices for all of the companies connected to the scandal, and Bristol must struggle and devote valuable corporate resources to generate positive media coverage to regain its faltering ethical reputation in the eyes of investors…

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…

References

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://208.254.39.65/haygroupusmkting/e_article001162460.cfm.

Hess, D. (2012). More Stock Rewards Tied To Performance. Crain's New York Business, 28(31), 0015.

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…

Bibliography

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.

3.2: Data Used: The data used in this study effot includes pimay and seconday data. Along with infomation etieved fom the liteatue eview, this eseache also pesonally compiled fom... (Consideations fo this section: What spatial and tempoal chaacteistics do data include? Do any known o anticipated souces of eo exist in the data?

3.2.1: Spatial and tempoal chaacteistics: Specific data chaacteistics within a sub-section

3.3: Methods and techniques: Two specific types of methods and techniques ae elated in this section

3.3.1: Method fo Specific Field wok: Subsections discuss specific technique.

CHAPTER IV: ANALYSIS

4.1: Intoduction: Hee, this eseache discusses the contents of the sections included/following in this chapte. A numbe of coss-efeences fom the methods chapte ae also included. This analysis chapte does not sum up the findings etieved fom the liteatue eview and this eseache's study "in one wod," albeit, it does pesent a synopsis of elevant findings etieved…

references from the methods chapter are also included. This analysis chapter does not sum up the findings retrieved from the literature review and this researcher's study "in one word," albeit, it does present a synopsis of relevant findings retrieved from this study's efforts.

4.2: Results for two rumours explored during this study are presented in this section. Data is synthesised and presented in numerous figures.

4.3: Discussion of results: This last section of this analysis chapter synthesizes results from the study, with key results highlighted and their importance emphasised in relation to this dissertation's overall aim.

CHAPTER IV: DISCUSSION; CONCLUSIONS; RECOMMENDATIONS

5.1: Introduction: Here in this final chapter's introduction, this researcher reminds the reader of this study's original study aim and objectives relating to financial rumours and their affect on stock prices. The point that research questions have been answered is presented. The determination of this study's hypothesis is revealed.

Employee Stock Ownership on Employees in the Airlines Industry since September 11th.

Review current materials on the issue.

Airline industry ESOPs tend to be very volatile.

This paper will examine the effects of the September 11th tragedy on employees' employee stock ownership plans in the airlines industry. The following generic information is provided for background before examining the main issue for this paper.

In the United States, the main vehicle for employee ownership in a company is the Employee Stock Ownership Plan (ESOP) which first became a recognized plan in 1974. There are between 17 and 20 million U.S. employees participating in large ESOPs or other contribution plans holding stock. Employees may own stock directly in their companies through stock purchase programs or be members of work cooperatives.

Studies find the employee ownership has a positive impact on performance even in adverse times. September 11th adversely affected the majority of…

Works Cited

Douglas Kruse, Ph.D. "Research Evidence on Prevalence and Effects of Employee Ownership. http://wwww.chrs.rutgers.edu.February 2002.

United Airlines. Form 10K. Securities and Exchange Commission.

Southwest Airlines. Form 10K. Securities and Exchange Commission.

Continental Airlines. Form 10K. Securities and Exchange Commission.

Financial Statements

One of the most significant factors in the decision to invest in ICICI Bank is to determine the affects of recent capital expenditure and the anticipated return for these investments. Entry into microfinancing represents a considerable amount to risk, due to the financial instability of the target market. The following chart highlights the most significant changes affecting the financial health of ICICI bank that result from expenditures associated with entry into the rural finance venture. It compares key indicators and explains the effects of ICICI's most recent changes to their banking strategy.

Income Statement for years 2003-2006 (in millions USD)

Total evenue

Cost of evenue

Gross Profit

Balance Sheet for years 2003-2006 (in millions USD)

Current Assets

Total Liabilities

Total Equity

Cash Flow for years 2003-2006 (in millions USD)

Net Income

Net Cash Flows Investing

Net Cash Flows Financing

Net Cash Flow

Data Source: Nasdaq.com (2007).

The income…

References

Das, K. (2006). India's ICICI Bank Targets 25 Million New Rural Customers. Innovations in Emerging Markets. Retrieved May 3, 2007 at  http://ifcblog.ifc.org/emergingmarketsifc/2006/11/indias_icici_ba.html .

Domash, H. (2007). The Basics: 10 growth stocks that can't be stopped. Moneycentral. Retrieved May 3, 2007 at  http://moneycentral.msn.com/content/Investing/Simplestrategies/P109819.asp 

Jubak, J. (2006). 10 top stock picks for 2007. Jubak's Journal. Retrieved May 3, 2007 from:  http://articles.moneycentral.msn.com/Investing/JubaksJournal/10TopStockPicksFor2007.aspx .

Nasdaq.com (2007). ICIC Bank. Infoquotes. Retrieved May 3, 2007 at http://www.nasdaq.com/reference/glossary.stm#EPS

Finance

Stock Valuation Questions

The market price for a stock or a bond may be influenced by both positive and negative risks. Using the example of Apple it is possible to consider two potential risks.

isk

Apple Inc. is well-known for its aggressive defense of its patents; the best known cases are between Apple and Samsung with cases in more than 50 cases across multiple countries at one point in 2012 (Mueller, 2012). Apple and Samsung both had victories and defeats which were aggressively fought. These battles show how important development and ownership of a patient can be, with firms seeking to protect their intellectual property. A potential threat may emerge if Apple faced a claim of credible claim of patent breach from another major supplier for a core product, where stockholders may fear that the firm may be liable for a potentially large settle and/or withdraw the offending products…

References

Carter, M, (2014, Feb 22), Why Whole Foods Market May Have a Big Problem, Motley Fool, accessed 22nd Feb at  http://www.fool.com/investing/general/2014/02/22/why-whole-foods-market-may-have-a-big-problem.aspx 

Lambert, T, A, (2008), Four Lessons from the Whole Foods Case, CATO Institute, accessed 22nd Feb at  http://object.cato.org/sites/cato.org/files/serials/files/regulation/2008/2/v31n1-4.pdf 

MacKey, J; Robb, W, (2013). Letter to Stakeholders, accessed 22nd Feb 2014 at  http://www.wholefoodsmarket.com/sites/default/files/media/Global/Company%20Info/PDFs/WFM-2013-Letter-to-Stakeholders.pdf 

Meador, Don; Britton, Mike; Phillips, Paige; Howery, Andrew, (2007), Case Analysis -- Whole Foods Market, accessed 22nd Feb 2014 at  http://pnphillip.asp.radford.edu/whole%20Foods%20Case.pdf

California Clinics

To find out the stock's value with the information provided, the Gordon Growth Model would be used. The Gordon Growth Model is used to determine the price of a stock if the dividend, dividend growth rate and discount rate are all known. The underlying assumption behind the Gordon Growth Model is that the stock price is based on the expected future dividends -- investors are only investing for the known future cash flows. As a result, only the dividend and the discount rate are taken into account, along with the expected future growth rate of the dividend. Capital gains are not taken into account in the Gordon Growth Model.

The formula for the Gordon Growth Model is as follows:

Source: Investopedia (2011)

Thus, $2 / (.15-.05) = P

P = $

The stock's value if the riskiness of the stock changes would be calculated with the same formula,…

Works Cited:

Amadeo, K. (2012). Inverted yield curve. About.com. Retrieved February 4, 2012 from  http://useconomy.about.com/od/glossary/g/Inverted_yield.htm 

Baker, S. (2009). Perils of the internal rate of return. Economics Interactive Tutorial. Retrieved February 4, 2012 from http://hspm.sph.sc.edu/courses/econ/invest/invest.html

Chmielowiec, M. & Granger, B. (2011). Cost of risk: Show me the money. U.S. Captive. Retrieved February 4, 2012 from  http://www.pointright.com/pdf/PR_Article_2011_Cost_of_Risk_Show_Me_The_Money.pdf 

Investopedia. (2011). Gordon growth model. Investopedia. Retrieved February 4, 2012 from  

Coach, Inc. Stock Analysis

Coach, Inc. -- Stock Pick

Coach, Inc. (NYSE:COH) is a solid, long-term investment. The company produces high-end, luxury fashion and lifestyle accessories such as handbags, sunglasses, scarves, jewelry, shoes and other items. The brand is especially popular in the United States and Japan. Coach has a unique competitive advantage due to its 70-year legacy, name recognition, loyal customer base, and international appeal. The product line always emphasizes high end leathers, product detailing and finishes at affordable price points. Handbags are the company's flagship offering. Competitors include Kenneth Cole, Louis Vuitton, Dooney and Burke, Gucci, Fendi, and Prada. Each company carries handbags that offer comparable quality, but at prices well over $1,000. Coach targets an equally affluent and brand conscious demographic; however, the company is best known for "affordable luxury" with price points beginning at $300. This pricing strategy has proven to be a competitive advantage, particularly…

Reference

(2012, October 24). Stocks in the News. Wall Street Journal - Eastern Edition. p. C4.

Corporate Finance

UnitedHealth Group Stock

This report will provide insight into the UnitedHealth Group Stock from an investor's perspective. The report will show a financial analysis included with an overview of the company's current health standing. The paper will also provide a summary of the company and their products and services. The key to any intelligent investing strategy lies in the investor knowing what a stock is really worth and also if it is safe to buy, sell or hold. Therefore, since this report is from an investor's perspective, the company's stock and industry will be reviewed so as to present a big picture of where United Health is today and where they want to go in the future.

Over the five past years the UnitedHealth Group stock has been making great progress as analysts consistently consider the group a strong buy option. As can be seen from the two…

Works Cited

UHC Home Page. Ed. UnitedHealthcare. UNH.  http://www.uhc.com/ .

United Health Group Home Page. Ed. United Health Group. UnitedHealth Group.  http://www.unitedhealthgroup.com/ .

UnitedHealth Group. Ed. Yahoo Finance. Yahoo Finance.  http://finance.yahoo.com/q?s=UNH&d=t .

If you need to type anything after the Reference List then start it on this page

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…

References

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:

employee stock option pricing is effected by the bonus plan hypotheses as discussed in the Watts and Zimmerman article.

Employee stock option pricing is an option on the common stock of a company that is issued as a form of non-cash compensation. estrictions on the option (as for instance vesting and limited transferability) are ways in which the business attempts to align its own interests with those of the holder's interests. In the event of the company's stock rising, holders of options generally experience a direct financial benefit, which gives employees the incentive to behave in ways that will boost the company's stock price (Summa; web).

The management compensation hypothesis, otherwise known as the Bonus plan hypothesis accordingly states that managers whose incentives are tied up with the firm's accounting performance are more likely to use accounting choices that reduce reported profits and manipulate their accounting methods and records in…

Reference

Summa, J. employee stock options. Investopedia.

www.investopedia.com/university/employee-stock-options-eso/eso3.asp

Watts, R. L & Zimmerman, J.L,"Towards a positive theory of the determination of accounting standards" The Accounting Review, January 1978, pp 112-34.

In developing countries, consumers are more affected for two reasons. One is that consumers are more likely to buy raw ingredients. ithout manufacturing entities to absorb some of the commodity price increases, consumers are left to absorb almost all of the increase (Ibid.). As a result, food prices have increased more in the developing world than in the developed world. Additionally, consumers in these countries already expend a significantly higher percentage of their income on food than do consumers in estern nations. Thus, demand for food in the developing world is price elastic and consumers suffer because they are unable to meet their food needs.

In the developed world, increased food prices suppress demand in other sectors of the economy, which can cause minor shocks in employment and investment in some businesses and industries. In the developing world, food price shocks can result in starvation and civil unrest. The recent…

Works Cited

Lapidos, Juliet. (2008) "Why are Global Food Prices Soaring?" Slate. Retrieved December 4, 2008 at  http://www.slate.com/id/2187882/ 

Wiewel, Wim & Persky, Joseph. (2002) Suburban Sprawl M.E. Sharpe, Armonk NY, 2002.

Barnier, Michael. (2008) "Europe is Key to Solving Food Crisis" Tehran Times. Retrieved December 4, 2008 at  http://www.tehrantimes.com/index_View.asp?code=184060 

Clayton, Mark. (2008) "As Global Food Costs Rise, are Biofuels to Blame?" Christian Science Monitor. Retrieved December 4, 2008 at  http://www.csmonitor.com/2008/0128/p03s03-usec.html

By opening stock options to middle management and employees, it was assumed that better employee performance would be incentivized. As company stock prices go up, it creates a greater spread between the option price when it was granted to the employee and the hypothetical sale price at the end of the vesting period. Consistently better performance over a longer period of time would yield greater reward when the option is exercised. However, as Hall and Murphy again point out, "even if employees can increase the value of the firm, their share of that gain through their option holdings is very small. Combining this enormous free-rider problem with the risk imposed on employees through stock-based pay, it seems obvious that cash-based incentive plans based on objective or subjective performance measures can provide stronger and more efficient pay-performance incentives."

Despite many early statements in the life of the practice that employee stock…

References

Calomiris, C. a. (2004, 01-08). Options Pricing and Accounting Practice. Retrieved 12-13, 2010, from Should We Expense Stock Options:  http://docs.google.com/viewer?a=v&q=cache:tDxxxPDG3cwJ:www0.gsb.columbia.edu/faculty/ccalomiris/papers/Options%2520Pricing%2520and%2520Accounting%2520Practice.pdf+Stock+options+are+an+expense&hl=en&gl=us&pid=bl&srcid=ADGEEShtdjeKitOxVfuENYIeyxgGdUiOjraoDHCLwH-WWxt9w30pnL310kAkP21iDHhBpErxlJ6mC_GQS6NEu7L3UGdc6T1ky33N1e7CFGL_NSZAn5ntALxB4KVgA2vjEiww911f6x4d&sig=AHIEtbRx6dSwLFzFHZnpHTpV0lsNIVpCYw 

Core, J. a. (2001). Stock option plans for non-executive eployees. Journal of Financial Economics (61), 253-287.

Engel, E. a. (2001, Jan.). The Roles of Performance Measures and Monitoring in Annual Governance Decisions in Entrepreneurial Firms. Retrieved 12-13, 2010, from an Analysis of Executive Compensation, Ownership, and Control in Closely Held Firms:  http://docs.google.com/viewer?a=v&q=cache:5vp-iWjpPb4J:faculty.chicagobooth.edu/ellen.engel/research/egh-rev-11_2.pdf+%E2%80%98%E2%80%98Stock-based+pay+in+new+economy+firms%E2%80%99%E2%80%99.+Journal+of+Accounting+and+Economics,&hl=en&gl=us&pid=bl&srcid=ADGEESifIyqUeDNwUoNkeDagDN_o40V-Jd9R56ECpswKKWzRQRdz_dZzpDHfcmTAKvZCDwZPpz9ZtR51HmXhCZ408jF-cv485C4m1xIxTy2zfTfQ4rp_g-4KFhIUdwKFVtmNCOWy82W5&sig=AHIEtbQapxbbbr0z-APPf2sdFQgWOYglLA 

Glater, J. (2009, March 26). Stock Options Are Adjusted After Many Share Prices Fall. New York Times, p. B1.

The first component is as follows: Net Margin = Net Income/Sales. How much profit Abbott laboratories makes for very $1.00 it generates in revenue, and the higher a company's profit margin the better. The second component is as follows: Asset Turnover = Sales/Total Assets. The amount of sales generated for every dollar's worth of assets. This measures Abbott's efficiency at using assets, and again, the higher the number the better. The final factor of the Du Pont analysis is as follows: Leverage Factor = Total Assets/Shareholder's Equity. The higher the number, the more debt the company has. Abbott's Du Pont analysis is computed using the following equation:

In this case, for the end of 2006, Abbott Laboratories reported a net income of $717 million dollars, sales of $22,476 million, total assets for 2006 of $36, 178 million, and equity of $14,054 for 2006. Placing these figures into the equation above…

BIBLIOGRAPHY

Abbott. (2007). About the Company. Retrieved November 9, 2007 at  http://www.abbott.com .

Epsicom. (2007). Abbott Medical Device Company Intelligence Report. Retrieved November 9, 2007 at  http://www.piribo.com/publications/medical_devices/companies/abbott_medical_device_company_intelligence_report.html .

McKinnell, H. (2003). Performance Report. Bayer AG 2003 Annual Review: 1-30.

Rogers, M. (2003). Risk Management in Real Options-Based Pharmaceutical

BETR

ith the health food trend in full gear, Amplify Snack Brands, Inc. (BETR) is a perfect stock for one's portfolio. Q1 2016 Earnings showed a "net income increased 71.3% to $8.4 million, or $0.11 per share, compared to $4.9 million, or $0.07 per share a year ago" ("Earnings Reported After the Bell May 2"). Sales were up over 20% compared to the same quarter the year previous and the company slightly beat analysts' expectations. Growth for the company looks positive with analysts expecting yearly revenues to report a "net income of $.062 per share" ("Earnings Reported After the Bell May 2").

Thus, from January to May 2016, BETR has been on a tear, breaking out of its range bound trading from January to March after the 2015 earnings report. The stock soared from $11 to $16 from mid-March to May with considerable volume buoying the stock over the 2…

Works Cited

"Earnings Reported After the Bell May 2." Nasdaq, 2016. Web. 4 May 2016.

Durden, Tyler. " 'Nothing Has Been Fixed' -- Citi's Five Reasons Why This Sucker Is

Going Down." ZeroHedge, 2016. Web. 4 May 2016.

"Insider Transactions." Yahoo! Finance, 2016. Web. 4 May 2016.

3.0 Dividends

According to the Miller-Modigliani Hypothesis, dividends do not affect value. This theory reasons that if a firm's investment policy doesn't change, the value of the firm cannot change with dividend policy. Therefore, investors should be indifferent to receiving either dividends or capital gains. but, the Miller-Modigliani Hypothesis has underlying assumptions that don't hold in the real work. It assumes there are no tax differences between dividends and capital gains and that companies do not use the excess cash they have as result of not paying the dividends for bad projects or acquisitions (Dividend policy). As these situations occur, there are distinct advantages and disadvantages of dividends

3.1 Advantages of Dividends

Stockholders may value regular cash payments that dividends offer and many may not face the tax disadvantages of dividends (discussed in the next session of this paper). and, unlike volatile stock prices firms generally do not change their…

Bibliography

Buybacks vs. dividends (2006, February 2). Nightly Business Report. http://www.pbs.org/nbr/site/onair/transcripts/060202c/

Dividend policy.  http://pages.stern.nyu.edu/~adamodar/New_Home_Page/lectures/dividend.html 

Hughes, C. And O'Doherty, J. (2007, February 22). Companies put faith in buy-backs and special dividends. Financial Times, p. 22.

Kennon, J.

Annie's Investment In Atelier's Bonds

Call price =$1,080

Call price = Face value+ interest (Extra payment to the bond holder)

Interest Income = Call Price - Face Value = $1,080 - $1,000 = $

After 5 years, Stock price = $ (30 x 50) = $1,500 If she sells the stock at the end of the 5 the year, then she will get income from sale of Stock = $ (1500-1000) = $500. Therefore, at the end of 5th year, Stock price will be greater than the Call Price and as such, the can convert the bonds into common stock.

Converting the bonds is a safe option for Annie since common stock is a safe, income-producing alternative to bonds. While convertible bonds give up some of the upside of a stock, the dividend component and the reduced volatility make them attractive investments for retirement accounts and accounts with a need…

Fortune 500 Company: TSLA
Ticker: TSLA
Current Stock Price: $290.71
Market Cap: 49.119B
P/E: 147.58
Dividend/Yield: N/A;N/A
Enterprise Value: 4.93
Beta: 0.96
Stock Split: No
Closing price last five days: $291.21, $287.71, $293.50, $300.10, $290.24
52 week high: $389.61
Book Value per Share: $11.58
Analysts’ Ratings: 4 strong buy, 4 buy, 8 hold, 6 underperform
Target Price: Low of $180 to High of $470, with the average at $317.04
Avg. revenue estimate for next year: 26.85B
Significant news: Tesla is ramping up Model 3 production; Tesla is working on a semi

Buy or Sell TSLA? Recommendation: SELL

I would not recommend investing in this stock. TSLA is currently the most shorted stock on the market: investors are bearish on Tesla, as the CEO Elon Musk has turned it into a cult stock with an unjustifiable P/E and a lot more empty promises at his back than actual delivery. While TSLA…

Economics

The author of this report is asked to assessed the financial fortunes and business decision-making of a firm named Autoedge. For the longest time, Autoedge was in a good niche in that they were providing auto parts and upgrades for all three of the major automakers. There was indeed an extra costs and such associated with the upgrades but many people trusted the name of Autoedge and were more than willing to pay the extra cost associated with the upgrades. However, there came a point where costs and competitiveness became a concern and manufacturing operations were shifted overseas to South Korea. This decision came with a staggering cost as quality fell sharply and there has been great damage to Autoedge's image. The question becomes now whether Autoedge should persist in keeping manufacturing operations overseas or whether Autoedge should try to take advantage of the fact that the job situation…

References

Edmunds. (2015). Edmunds.com. Retrieved 22 August 2016, from http://www.edmunds.com/car-buying/how-to-buy-an-american-car.html

Isidore, C. (2015). Walmart's imports from China cost 400,000 jobs, says study. CNNMoney. Retrieved 22 August 2016, from  http://money.cnn.com/2015/12/09/news/companies/Walmart-jobs-china-imports/ 

Jamieson, D. (2016). It's About To Get Harder For Companies To Hide Union-Busting. The Huffington Post. Retrieved 22 August 2016, from  http://www.huffingtonpost.com/entry/union-busting-persuader-rule_us_56f1bdcbe4b0c3ef52172770 

Kerr, D. (2013). Apple to build made-in-the-USA manufacturing plant in Arizona. CNET. Retrieved 22 August 2016, from  http://www.cnet.com/news/apple-to-build-made-in-the-usa-manufacturing-plant-in-arizona/

00. ("Nue Core," 2010) Arcelor Mittal has trailing PE ratio of 23.28 and a forward PE ratio of 7.09. The current ratio is 1.35 and the put call ratio is .55. The price dividend ratio is 45.74, while the beta is 2.70. ("Arcelor Mittal," 2010)

Upon doing a side by side comparison, Arcelor Mittal is the strongest company out of three. This is because their PE ratios remained more stable over the past year and the reading of 7.09 on the forward PE ratio, is an attractive long-term valuation. The high put call ratio indicates that investors have become somewhat pessimistic in the stock. The price dividend ratio is the only drawback, where historically this number should be in the 14 to 17 range. However, given the volatile nature of the steel industry, the fact that they are continuing to pay dividends after a severe recession is a sign of…

Bibliography

Arcelor Mittal. (2010). Retrieved June 12, 2010 from Yahoo Finance website:  http://finance.yahoo.com/q?s=MT 

Arcelor Mittal. (2010). Retrieved June 12, 2010 from Schaffer's Research website:  http://www.schaeffersresearch.com/streetools/indicators/putcall_open_interest_ratio.aspx 

Nue Core. (2010). Retrieved June 12, 2010 from Yahoo Finance website:  http://finance.yahoo.com/q/ks?s=NUE+Key+Statistics 

Nue Core. (2010). Retrieved June 12, 2010 from Schaffer's Research website:

In 2004, FASB (Financial Accounting Standards Board) issued a draft meant to provide guidelines of how entities should estimate fair value prices for reporting purposes.

Escape clause - is a part in any contract that specifies the conditions in which one or more parties involved in the contract may avoid performing its duties as specified in the contract.

14. The import substitution is a policy through which countries decide to substitute some of the imported products with others manufactured locally. The advantage of this policy is the import limitation, which in some instances may turn out to be positive for the trade balance and national value-added creation. The disadvantage is that national products lose export competitiveness because they are protected by the state. The export promotion is a policy through which countries decide to develop measures meant to increase the exports of national products. The advantage of this policy is…

During recessions, when people fear losing their jobs, workers are less apt to spend money on things like clothes and entertainment, and horde their money. If they have lost their job, they try to spend as little money as possible. Americans are also buying more big-ticket items like cars, home appliances, and homes, indicating that they are confident enough to take advantage of the currently low interest rates and feel more certain they can pay back the loans in the future. More businesses are hiring, indicating that consumer demand has increased and there is a greater need for staff to meet the business' needs. The stock market is improving, which also indicates that people are investing their money in a more high-risk fashion than before, and feel more confident about the direction of the economy.

Q3. Do you believe companies should be allowed to place cookies on your electronic devices…

References

Shpritz, Dave, Tyrone Proctor, Christopher L. Smith, & Cathy Iacobazzi. (2011). Issues in information technology: Cookies. Retrieved March 30, 2011 at  http://www.bsos.umd.edu/gvpt/its/EcommSp01/procon.htm

.....company would expense the 1000 share options at $15 (1000 x $15 = $15,000), as this was fair market value at the time of expense, based on Black-Scholes (Harper, 2017). In 2014, the expense would be $3 per share option (1000 x $3 = $3,000), because that is the amount of increase in the value of the options that derives from the change in the exercise price.

The accounting for the awards would change after the options became fully vested, because the value of the options would no longer be based on Black-Scholes. Instead, the options would be based on the difference between the new exercise price and the old exercise price. After the options have vested, there is no longer any time value to the options, so an options model for pricing is no longer necessary -- they are just shares at that point because the employees no longer…

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…

Works Cited

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

Inflation and Deflation: The Issue of Price Stability

Maintaining relatively stable prices is one of the major concerns in all capitalist economies. History shows us that left to its own devices; the capitalist economies undergo frequent "business cycles" that typically consist of a period of surging economic growth, interrupted by economic crises -- often accompanied by the collapse of the monetary system. Alternate bouts of inflation or deflation can also occur if the money supply in an economy is not controlled. Most advanced countries in the world take measures to keep the price stable. In the United States, the Federal Reserve Bank (known as Fed for short) was created in 1913 to avoid such undesirable movements in the economy. This paper examines the causes and consequences of inflation and deflation and the role of the Federal Reserve Bank in the prevention of inflation and deflation and maintaining price stability. It…

Works Cited

Buiter, Willem H. "Deflation: Prevention and Cure?." European Bank for Reconstruction and Development. 12-05-2003. February 10, 2004.

 http://www.lse.ac.uk/collections/LSEPublicLecturesAndEvents/pdf/20030519t1658z001.pdf 

Christiano, Lawrence J. And Terry J. Fitzgerald. "Inflation and Monetary Policy in the Twentieth Century." Economic Perspectives. 27. 1. (2003): 22+.

Makinen, Gail. "Inflation: Causes, Costs, and Current Status." Report for Congress

Food Capital Budgeting

Strategy for Price Elasticity

Major effects of government policies on production and employment

Government egulations for fairness in the low-calorie, frozen microwavable food industry

Major Complexities in Expansion via Capital Projects & Key Actions

Convergence between the Interests of Stockholders and Managers

Strategy for Price Elasticity

The Price Elasticity is a tool that is used by economists and business to measure exactly the quantity response that is needed to adjust to a change in price. This gives a very good idea of the quantity that is supplied or demanded changes due to a change in the price. This is also defined by the degree of reaction of a demand or supply curve with respect to any change in price. The essentiality of a product often decides the price elasticity of the product and thus varies across a product range. The products that are considered to be necessities…

References

4 Corporate Mergers Shot Down By the Government. (2014). Fusion. Retrieved 8 March 2016, from  https://fusion.net/story/4908/4-corporate-mergers-shot-down-by-the-government/ 

Alderman, N., Ivory, C., McLoughlin, I., & Vaughan, R. Managing complex projects.

Employee Stock Options Fact Sheet. (2016). Nceo.org. Retrieved 8 March 2016, from  https://www.nceo.org/articles/employee-stock-options-factsheet 

Gunay, S. (2008). Corporate governance theory: a comparative analysis of stockholder and stakeholder governance models. Bloomington: IN: iUniverse.

Oil Price Fluctuation

Actions adopted by the government to reduce or limit price fluctuation

Oil Price Fluctuation iii

This report will focus on the actions adopted by the government to reduce the fluctuation in oil prices. A brief introduction is discussed in the assignment. The reasons are also described in the assignment for which the oil prices fluctuate. This assignment also puts light on the price stability and why governments need to intervene to reduce the volatility in oil prices. Strategies adopted by the government to stable the oil prices are also discussed.

easons of price fluctuation

Price stability

Government intervention to stable the oil prices

Energy conservation

Hedging

Strategic oil reserves

Adopt assistance

Conclusion

eferences

Actions adopted by the government to reduce or limit price fluctuation

Introduction

The prices of oil were increased in 2007 to 2008. The oil prices were highly fluctuating in 2007 between the months January…

References

Bacon, R. & Kajima, M. (2008) Coping with Oil Price Volatility. ESMAP p.1-174.

Conerly, B. (2013) Oil Price Forecast for 2013-2014: Falling Prices. Yahoo Inc. p.1-2.

European Central Bank (2007) Price stability: why is it important for you? P.1-87.

Gillman, T. (2008) Why Oil and Gas Prices Fluctuate. Yahoo Inc. p.1-3.

(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,…

References

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:

While stock may be used instead of monetary motivation, management may inflate the value of these and gain more from employees with less investment. Furthermore, a buyback strategy may result in a negative external business image for the company when stock is later revealed to be of lower value than merited by the buyback price.

3. I believe that stock buybacks are indeed a strategy. A strategy can be defined as a plan of action to further the business advantage and image of a company. As seen above, while the strategy may be to the advantage or disadvantage of the investor, it is always used to the advantage of the company buying back stock. Some companies include this strategy as part of their yearly business plan and projections for the future. The disclosure of buying back strategies can also be used as a tool to encourage future investments. As such,…

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…

References

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.

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…

References

Investopedia. Beta.

 

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,”…

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

Market Prices Are Useful to a Financial Manager

The objective of financial managers are to maximize the value of the firm. This in, other words, is called raising its market value for all stakeholders concerned. It is in this way that financial managers are concerned about the market price of a share of stock (i.e. how much that stock costs in the market). Market price is the measure of the owner's economic well-being. Investors who buy stocks would be willing to pay for the share in the company exactly what they believe it to be today (i.e. future dividends are as calculation of present value). To that end, therefore, financial managers attempt to maximize the present value of the stock Fama, 1976).

Discuss how the Valuation Principle helps a financial manager make decisions.

Financial managers must often make decisions regarding the benefits and costs associated with an investment. That is…

References

Fama, E.F. (1976): Foundations of Finance, Basic Books Inc., New York

Kellison, Stephen G. (1970). The Theory of Interest. NY: Richard D. Irwin

Khan, M.Y. (1993). Theory & Problems in Financial Management. Boston: McGraw Hill Higher Education.

O'Sullivan, A. & Sheffrin, S.M. (2003). Economics: Principles in action. New Jersey: Pearson Prentice Hall.

50) to 2097 -- the price of this bond is of $58 (Yahoo Finance, 2009).

Despite their past low popularity, the investors are now beginning to seek more vividly the Ford preferred stock (F-PF) and this is generally explained by the fact that the popularity of the common stock has suffered demises. The company officials have decided to allow owners of common stocks to exchange them with preferred stocks and vice versa, in order to increase investor satisfaction. The preferred stock is being traded at a value of $38.86. Preferred stocks are among the riskiest investments and the specialized advice is that they be kept for long periods of time, but in small amounts. Additionally, it is necessary to diversify the portfolio and the preferred stock should not make up more than one percent (Neubert, 2007).

eferences:

Neubert, D., 2007, Ford Preferred (F-PS): Used Only with Diversification, The Panelist, http://thepanelist.com/Neubert%27s_Trades/Neuberts_Trades/_20070805502/last…

References:

Neubert, D., 2007, Ford Preferred (F-PS): Used Only with Diversification, The Panelist, http://thepanelist.com/Neubert%27s_Trades/Neuberts_Trades/_20070805502/last accessed on July 8, 2009

2009, Bond Screener at Yahoo Finance, http://reports.finance.yahoo.com/z1?is=ford last accessed on July 8, 2009

2009, Investopedia,  http://www.investopedia.com  last accessed on July 8, 2009

If one particular company has plenty of liquid assets, which therefore assures its progression in future business ventures, then the company has good potential for investing. However, if the company seems to have more current liabilities than assets and capitol, then the investor should definitely look elsewhere.

There are several ways which investors should judge companies in terms of potential investments. One is to judge a company based on their earnings per share, which is calculated through the earnings of the company in the last four quarters. Revenue-Based Evaluations compares companies based on revenues as related to company costs or long-term debt. Investors should also look at a company's cash-flow, or the amount of capitol which actually passes through a company each quarter after that company withdraws money for the cost of maintaining business. Another way is to judge based on the equity of a company, which is judging the…

Translation, eporting, And Prices

Briefly describe the corporation you researched.

The organization researched is a multinational called Walmart. The chain store is a retailer organization whose home office is located in America. The company operates by providing products to its customer through a chain of retail outlets. The public owned organization is the largest in the global market. The company has grown over the years through implementing policies that allow it to sell at a lower price that its competition. The company is the largest retailer is the globe with majority of its shares held by the public. The founding family still has a controlling share of the business with the family controlling over 48% of the shares. The company founded in 1962 and incorporated in 1969 is among the most successful companies in the globe. Its headquarters is located in Arkansas and is currently the largest grocery retailer in…

References

Akta?, R., & Kar?

n, M. (2011). Timeliness of Reporting and the Quality of Financial Information. International Research Journal Of Finance & Economics, (63), 71-77.

Albuquerque, R., De Francisco, E., & Marques, L.B. (2008). Marketwide Private Information in Stocks: Forecasting Currency Returns. Journal Of Finance, 63(5), 2297-2343.

Bartov, E. (1997). Foreign Currency Exposure of Multinational Firms: Accounting Measures and Market Valuation. Contemporary Accounting Research, 14(4), 623-652.

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.

Commercial paper:…

References

Investorwords.com. Retrieved Dec 7, 2006 from Investor Words. Website:  http://www.investorwords.com .

AT&T Cost and Price

Cost and Price Analysis -- AT&T

Company Overview

The AT&T Government Solutions business is currently headquartered in Oakton, VA and is composed of over four thousand scientists, engineers, and analysts; many of which have already obtained the needed security clearance to work more sensitive projects (AT&T Government, 2012). The company's niche is focused on providing a range of IT managed solutions that include network leadership in voice, data, video, and managed services. The company previously operated under the name GRC International which was originally founded in 1961 (Bloomberg Business, 2012). However the name was changed to AT&T Government Solutions, Inc. In March of 2000 and operates as a subsidiary of AT&T Inc.

AT&T Government Solutions received a majority of its work from the defense industry in 2011 which represented close to three hundred eighty million dollars' worth of revenue. By contrast, the civilian sector represented nearly…

Works Cited

AT&T Government. (2012). About AT&T Government Solutions. Retrieved from AT&T Government:  http://www.corp.att.com/gov/about_ags/ 

Bloomberg Business. (2012). Company Overview of AT&T Government Solutions, Inc. Retrieved from Bloomberg Business:  http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=111209 

Booz Allen. (2012, Feburary 7). U.S. Government Omnibus Network Enterprise (USG ONE). Retrieved from Booz Allen:  http://www.boozallen.com/media/file/02.078.12-usg-one.pdf 

Fisher, J., & Peters, R. (2010). Using Stock Returns to Identify Government Spending Shocks. The Economic Journal, 414-436.

Non-Price Competition BETWEEN HOME DEPOT AND LOWE'S

The Home Depot was founded by Bernie Marcus and Arthur Blank. They opened the first Home Depot stores in Atlanta on June 22, 1979. The first few stores were later attached to Treasure Island stores, stocking around 25,000 products. Today, on average, Home Depot stores are large covering an area of approximately 130,000 square feet, and offering between 40,000 and 50,000 products. While the initial motto of the company was to provide the products at the cheapest price, later on the company began to provide hands-on training for attracting the customers from various walks of their lives (Howell, 6).

The Home Depot grew to encompass stores in Georgia, Florida, Louisiana, Texas, and Alabama within the first 5 years and this growth continues to this day.

Home Depot's approach is simple. It opens massive stores (130,000 square feet, on average) at different locations and…

References

Dolbow, Sandra, Barry Janoff, Consumers Return To See What's In Store, Brandweek, Vol. 43, Issue 24, 6/17/2002: 68-69.

Embrey, Alison, Home Depot and Lowe's: the race is on. Display & Design Ideas, Vol. 15 Issue 10, October 2003: 55.

Frederick, Jim, Home Depot Vs. Lowe's, Money, Mar 1999, Vol. 28, Issue 3, pp. 60-61.

Griswold, Alicia, owe's Set to Tackle Rivals On Multicultural Front, Adweek, Vol. 44, Issue 42, 10/27/2003: 16-17.