Stock Market College Essays Samples For Students

One of the causes that have resulted to the global economic crisis in the last decade has been the issue of mortgage securitization. A good example is the Florida mortgages. Most retirees from Norway were involved in securing mortgages. Different financial links can be identified into how these individuals got involved in the mortgage securitization. Ideally, the process began with a simple home purchase, where the seller got cash from the buyer to secure ownership of the house. The homebuyer had to obtain cash by signing a mortgage loan agreement with the originator (mortgage brokers) who in turn got cash by ...

1 While much has been hypothesized regarding the true meaning of the term idea multiplication, it is essential to note that it refers to all the processes involved in the use of existing ideas to develop newer ideas that are more important. These processes do not occur in isolation, but calls for brainstorming of the existing ideas with the sole aim of restructuring the existing idea by adding or removing certain feature. Notably, idea multiplication is advantageous in a number of ways. Above all, it is often easier to devise new ideas from existing ideas. In addition, it suits well ...

Investing in the other countries provides several benefits to the investors, which include attractive, and more returns and the diversification opportunity. The introduction of the investment products has now made the assessment of international markets easier (Agarwal & Ramaswami, 1992). But, at the same time it is essential for people who are making investments overseas to have the basic idea and understanding of the working of international markets.

Being CEO of the organization based within the United States, I will invest in China. This is due to the fact that the economy of China has huge potential; it provides ...

Question 1

A state government has powers to carry out any political process, which is beneficial to the public and the entire economy. Domestication is a move by the government to control and utilize its local resources for the purpose of creating independence. This process is important for the nation since it prevents exploitation from foreigners. On the contrary, domestication plays an important role in improving the economy through exportation of goods. Expropriation, on the other hand, will entail taking control of privately owned property by the state government for public interest. This move will negatively affect the economy as it discourages ...

Fiscal planning is the means of ensuring that one is making the best use of his or her money and help individual to prepare for their future. The planning may involve a range of activities, with strategies ranging from the short-term to the long-term (Garman & Forgue, 2011, p.21). A person may want to create a budget to enable him or start saving towards a future purchase, or they may be more concerned about guaranteeing their future financial security through retirement planning. Financial planning prevents a person from overspending by crafting and sticking to a sensible budget. It can also help people to avoid accumulating ...

Question 1

Prior to its enactment in July 2002, the effects of the Sarbanes-Oxley Act were felt apparent subsequent to the fact that its enactment fostered a series of company fails. Inherently Sarbanes-Oxley Act cultivated the downturn of major companies such as Tyco, Enron and WorldCom (Khanna & Palepu, 2010). In addition, this act further caused dire damage on major companies between 2002 and 2004. With such apparent effects, Sarbanes-Oxley Act is more likely to affect the America’s stock exchange in many perceptible ways.
Swath changes subsequent to the enactment of Sarbanes-Oxley Act were deep and profound. To execute the ...

An Accounting Investigation after the UK based super market restated its profits

Issue: Tesco restated its accounts due to overstatement of earnings and an accounting investigation is looking into the matters. The company is unable to account for its problems as well as its earnings.

Synopsis: UK based super market chain Tesco restated its accounts last month due to overstatement of profits by $250 million in the half yearly reports. After the profits were slashed and the dividend cut off, the company had suspended 4 of its senior level executives to delve further in the matter. Now the UK based firm is unable to account for its own problems. It can ...

Unsuccessful business connotes to a wasted effort. Unequivocally, worthy investments are requisite to the future financial security coupled with myriad accomplishments. Establishing an investment or rather an asset management business is primarily vital. Also, raising funds for business, thereby, investing in a competitive market explicitly illustrates the direction of a particular entity. Distinctively, a group of individuals based in London intends to invest into vintage cars and art pictures. The highlighted business necessitates myriad clarifications with regards to the investment. Essentially, the suggested business is majorly embattled with limited funds. The paper endeavors to establish whether to raise funds from a developed country or ...

The wolf of Wall Street (2013), a movie based on true events, revolves around Jordan Belfort’s life. He started out as a low-level stock-broker and GOT retrenched when the company he was working for became bankrupt. He found employment with a small company that dealt with Penny Stocks. Thereafter, he broke out and started his company, Stratton Oakmont Inc., with a group of friends, which was an Over-The-Counter (OTC) brokerage house. I selected this movie so as to analyze the organizational structure in Over-The-Counter firms. These types of firms have been criticized and branded the “dark market” because their charges in ...

Introduction

In an investment, it is critical to make appropriate decisions that are relevant to the business. The essence of this is to minimize the risks and ensure that the business is on a steady path. The investor has, therefore, to consider following some guidelines that ensure that a proper forecast of the investment is done to ensure that there are no such issues, poor returns on investments (Matthäus-Maier, et al, 2007). The guidelines that are relevant for aggressive equity investors and conservative equity investors for investment decision forms the basis of evaluation in this paper.

The guidelines for conservative equity ...

- The beta estimates are reasonable. The beta coefficients of all the assets are less than one which, when compared to the market beta of one indicates that the price of the investment will be less volatile than the market. This is due to the fact that the betas of these investments are less than the market value which is taken as the benchmark value.

- The most important measure of risk in this situation is the calculation of Sharpe ratio. This is because this ratio measures the risk adjustment performance of the investment as opposed to standard deviation ...

Financial planning is a very crucial aspect of a business enterprise. It plays a core obligation in the success and efficiency of an enterprise in matters related to performance and profitability. A business enterprise needs to establish its goals and objectives when investing in various projects. In practice, an enterprise sets financial goals and objectives in order to avoid chances of financial constraints and the possibility of failure to meet its set financial obligation within given time frames. Therefore, the creation of budget will always be necessary for an enterprise so as to enable the company focus on achieving its targeted goals ...

Financial planning is important for businesses today. By preparing the financial plan, an organization is able to determine what kind of objectives the firm would like to achieve. There are different aspects that are covered in a financial plan and some of the important aspects of financial planning include; estimating the profits that the firm would like to generate, the types of resources that would be required to accomplish these objectives, identify the changes in the business environment, analyzing the risk and return of investment, calculating the budget and costs that would be incurred, estimating sales from different departments or ...

The compound C12H10Cl3N3O8Ru2 is made up of various elements. These elements include carbon, hydrogen, chlorine, nitrogen, oxygen and ruthenium. One of the features of the compound is that it has a formula weight of 632.72grams/ mole. This is the weight obtained by summing the atomic masses of the elements that make up the compound. This mass means that from every one mole of the compound, the total weight is about 632.72 grams. It can be observed that the mineral is heavy as compared to other compounds of the same nature.

The compound is joined together by covalent bonds. At room ...

Currency exchange rate is a country’s currency expressed in foreign currency’s terms. This is affected by the forces of demand and supply in the currency market. Currency exchange rates are essential whenever making investment decisions. Investors tend to invest in countries where the exchange rate is high as in so doing their returns will be maximized. The investors also use the exchange rate for speculative purposes when carrying out foreign exchange market transactions. For instance in instances where the exchange rate has been increasing the investor will be able to speculate a future increase in the rate. Various factors ...

The Dow Jones Industrial Average Yearly Return I have obtained from the following table:

http://www.1stock1.com/1stock1_139.htm

We use the last column.

The U.S. GDP growth rate is below:

We use third column.

- Compute the average, standard deviation and the coefficient of variation of each of the variables. In addition, graph the values of the DJIA on the percentage grow rate of the GDP.
I use Minitab 16 statistical software to complete this question:

Descriptive Statistics: GDP per capita growth, %; Dow Jones Rate

Variable Mean StDev CoefVar
GDP per capita growth, % 1,755 1,994 113,65
Dow Jones Rate 9,67 15,24 157,63
- Compute a 95% confidence interval for the population mean of each variable.

One-Sample T: GDP per capita growth, %; Dow Jones Rate

Variable N Mean StDev SE Mean 95% CI
GDP ...

After completing the “Play a Virtual Market” simulation, my knowledge regarding how the stock market works was greatly enhanced. My basic strategy was to invest in oil, banks and energy stocks. I also picked a few stocks whose name I recognized. Fundamentally, my strategy was to buy low and sell high. I was estimating that the price of these stocks will go up because of the increase in oil prices, which then increases the energy prices.
I realize that Investing in the stock market is a risky investment. However, that riskiness can be decreased by investing in options. An option gives ...

In the study of stock market prices, percentage change of interest and, the percentage change of market indices are key determinants in predicting the future performance of the stock market. When buying shares in the stock market, an investor usually compares the current price and, the future expected increase in price, which will result in profits. The future expected profit is usually calculated at the existing interest rates. Any future change in the interest will automatically have an impact on the future expected earnings. For instance, a rise in interest rate may result from inflation. As a result, future stock prices ...

I believe that economic globalization brings both benefits and shortcomings to international portfolio investments, but is overall beneficial. On the one hand, economic globalization leads to expanded markets for companies who are now able to address the need of more customers than before. Because of this, companies can use economies of scale to their own benefits and generate better returns on capital. The globalization allows for a more efficient allocation of resources, for instance by manufacturing products in the area where the prices are the most competitive (e.g. European textile brands manufacturing clothes in Bangladesh). These are all benefits for ...

Wolf of Wall Street is an American black comedy movie based on Jordan Belfort. It is directed by Martin Scorsese, and the screenplay is written by Terence Winter. It was released on 25th December 2013 a film based on the true story of Jordan Belfort. Jordan is portrayed as wealthy stock-broker who lives large, spends a lot of money, and lives an exceedingly high life, until he falls due to involvement in corruption, crime, and federal government. It is a very funny and entertaining movie that features other characters including; Margot Robbie, Jonah Hill, Matthew Mc Conaughey, Rob Reiner, Kyler Chandler, John ...

Cross-listing is a process to access other stock exchange markets to collect the investments. The main advantage of cross-listing for the share-issuing companies is that due to the different business time zones, the companies have the opportunity to trade for more than the normal trading hours available. Therefore, more trading hours allow the companies to complete their ‘right issue campaigns’ in a short time. Another main advantage of cross-listing is that the companies which are listed in different countries are in a position to collect funds in different currencies that reduce their translation and currency risk. Moreover, the list of foreign companies ...

Introduction to finance and quantitative methods

Question one
- Ways of classifying financial markets
Financial markets refer to markets where exchanges of financial instruments take place. Financial markets can be categorized in the following ways:
- Nature of the products: Financial markets can be classified based on products ownership, the duration it takes to mature, how it is traded, size and how it can be transferred. Examples of such financial markets are equity and derivatives.
- Market participants: Market participants may be made up of professionals, non-professionals or officials of an institution. Under this criterion, financial markets can be classified as ...

Investment Policy

This investment policy has been drafted after consideration of a number of policies on the part of the client. It also describes all the prudent investment factors that the investor deems appropriate. In this investment policy, the investor is offered asset classes that are managed under specified management styles for achieving the set objectives (Craig, 2012). The main return objective for this investment policy is maintaining the returns for the investor at a minimum of 7.5% while maintaining a moderate risk level in comparison to other market investments. It also aims at capital preservation and long term growth for the investor.

Risk tolerance

Prudence ...

Summary

The global economic crisis that happened between the year 2000 and 2010 was largely due to the issue of mortgage securitization. Mortgage securitization emanated from firms developing new securities from the mortgage obtained by buyers and developing business with investors from these new securities. The development of mortgage securities begins with the buyer of a homeowner paying cash to secure ownership of the house. To obtain the cash, the buyer secures a mortgage using a mortgage broker who secures the mortgage from a securitizing firm. The securitizing firm then creates new securities, which it sells to potential investors. The mortgage broker and the ...

Introduction

The Journal of Banking and Finance (JBF) essentially undertakes the mandate of publishing both the empirical and theoretical research, it doesn’t publish any other research but rather those within the span of finance and banking. Its main objective as stated within the scope of their mission is fundamentally to ascertain a flow and availability of research that pertains to capital, money, and operations of the financial institutions. Ensuing the fact that this journal accomplishes the mandate of assuring a continued flow of research materials about banking and finance, recent articles from this journal will be analyzed to deduce trends and essentially ...

Answer a)

Market is said to be efficient when the same amount of information is available to all investors at the same amount of time. In other words, an ‘Informational Efficient Market’ is said to be efficient Nobel Laureate, Eugene Fama was the strong proposer that the market is efficient, i.e. , since similar amount of information Is available to all the investors at same amount of time, all the stocks in the market are perfectly priced and no investor can beat the market returns.
However, whether the stock markets are efficient or not, the topic is still in debate despite of ...

Article Summaries

Article Summaries

Weibo has been performing well in China the same way in which Twitter is doing across the world. It is perhaps due to this reason that the owners have decided to initiate an IPO in the US. As is expected of any company planning an IPO, Weibo has to provide the IPO filing to prospective investors (read the general public). The author clearly highlights the major details embedded within the filling in a bid to inform his readers on what each of them means.
Specifically, the author emphasizes on the risk factors directly affecting the company. This ...

NPV

NPV (the net present value) is used to calculate, and analyze how much is a project is useful also to find out the difference between the present value of cash inflows and the present value of cash outflows. Also, we should know that the NPV analysis is sensitive when we calculate the future cash inflows for the project's revenues. Simply the NPV method shows whether we should undertake a project or reject it; it is useful to make decisions and it is easy to use.
According to the primary investment rule, if the NPV is positive that means the project ...

Introduction

A Ponzi scheme is a type of investment fraud that contains processing of expected returns to current investors from the amount of funds collected from the new investors. Ponzi scheme regulators usually convince the potential investors by giving them an assurance of high returns depending on the amount of fund that they deepen into the scheme. This comes with a guarantee of high returns with minute or no risk. Ponzi scheme began in 1920s; it was started by an English man known as; Charles Ponzi. He convinced plenty of English citizens into believing that, by investing in a postage stamp they were ...

It may be a mere co-incidence or accidental turn of events that the theme, concept, content, genre and approach of two generically different kinds of books can have so much of close association. In order to appreciate this feature, an analytical study of the following two books was made.

1: Technical Book:

- Description: A supplement for undergraduate and Graduate Investments Courses.
- Publisher: Prentice Hall, 5th Edition (January 8, 2013)
- Language: English
- Paperback: 160 Pages
2. Non-fiction Book
- Publisher: W.W. Norton & Company
- Contents: 213 pages
- Language: English
3. Article ...

Introduction

Investors are interested in knowing the intrinsic and market value of a company so that they can make wise investment decisions based on the available information. In determining the monetary value of a business, investors use the following three methods:
Asset approach- this method looks at the liabilities and assets of a business. The difference between the assets and liabilities is the business value.
Market approach-this method is based on the market forces of demand and supply in arriving at an equilibrium price acceptable to both the buyer and the seller of the company. This makes the fair market where ...

Since the beginning of the economic revolution, the united states have experienced recessions at least, but none was severe or lasted as long as the great depression. It is only with the shift in the economy towards war armament in the late 1930s that the hold of the recession eased. Stock prices had been rising gradually since 1920, but in 1928 and 1929 their prices surged forward with average stock gaining over 40% in value. At the time, the stick was totally unregulated, and this led to a lot of margin buying as customers borrowed up to 70% of the ...

Investing in the FutureFirst Name MI Last NameInstitution Name

Investment means every asset that an investor owns or controls, directly or indirectly, that has the characteristics of an investment, including such characteristics as the commitment of capital or other resources, the expectation of gain or profit, or the assumption of risk. It is a current commitment of Rupees for a period in order to derive future cash flows. The investment may include an enterprise, stocks, and other forms of equity participation in an enterprise, bond, debenture, and other debt instruments. Individual invests because by saving or investing money, instead of spending it now, individual’s trade-off present consumption for an ...

A self-directed investment is a retirement account in which the investor is responsible for all the decisions. The individual who holds the account makes decisions based on his/her own choices. People use this account as a means of diversifying investments apart from stocks, bonds, and mutual funds. The investments in this account are administered by a custodian or trustee who is appointed by the investor himself/herself.
The greatest advantage for a self-directed IRA is that; a person can invest in whatever he wants. These investment decisions may range from gold coins to horse farms (Tuchman, 2013). However, people have misunderstood the meaning of ...

An overview of the financial statements does not convince me to suggest the management for the purchase of a major shareholding in Squirros Limited. My decision is based on the visible trend in the major portions of Balance Sheet and Income Statement.
First, the turnover of the company has consistently decreased over the years. The same goes with the gross profit margins and net profit margins of the company that courtesy low turnover has decreased significantly over the years. Another negative consideration for the company was increasing administrative cost and interest expense. To be noted that since the company ...

The British Empire operated three different types of colonies during the height of their occupation of the United States. These were royal colonies; proprietor colonies and company colonies also known as a corporate colony or a charter colony (Fishkin 6).
Charter colonies were grown because of the need for free enterprise. They were established by individuals or groups of settlers who received charters from the King (Fishkin 12). They then created chartered companies to pool likeminded investors and shareholders for purposes of exploration, colonization and trade. Most chartered companies were formed in the 16th century by European investors (Fishkin 17). ...

The Crash of 1929

Stock market crash of 1929 was the result of one of the largest in the history of crazy speculation. Few years, anticipating the year 1924, the U.S. Dow Jones index, estimating shares of industrial companies fluctuated within a relatively narrow price range with strong pressure from sellers at every level reaches 110. At the end of 1924 year stock broke through this level, demonstrating the tremendous rise to 150 in 1925. Rise of the stock index warned about a few good years in the future. Since 1921, when the stock market was very depressed, and by 1928 the volume of industrial production ...

Question 1

Since the FX market is the most profitable markets due to high returns on investment, its expectation is to have a group of experienced brokers. However, if these brokers do not meet the FX objective, they become non-essential. The broker may become non-essential for the FX market due to lack of knowledge and time, which expect one to know the market’s role and be patient. Inexperienced brokers become non-essential to the FX market since there are unable to meet its expectation. Similarly, a fraud, which is becoming a threat in the FX market can make broker who commits fraud non-essential in ...

Each bond is given a grade that indicates the credit quality of that bond; this grade is referred to be the rating of the bond. This rating comes from private independent rating agencies like Standard & Poor’s, Moody’s and Fitch; the agencies rate a bond based on the evaluation of the financial strength of the issuer (Crabtree & Maher, 2005). This means that the ability of the issuer to pay the principal amount of the bond as well as the interest in a timely manner is taken into consideration and then evaluation of the bond is done. The highest grade is ‘AAA’ ...

The U.S. Securities and Exchange Commission is a federal agency created by Congress to regulate securities trading, protect investors and control stock and option exchanges in the United States. The Commission was formed in 1934 by U.S. Congress to restore public confidence in capital markets after the stock market crashed in 1929. It was created to increase stability in the markets by protecting investors and enforcing the federal securities laws.
The primary overseer of the U.S. securities laws is headquartered in Washington and has 11 Regional Offices located throughout the country.
The U.S. Securities and Exchange Commission (SEC) ...

There are two kinds of bonds including those issued by government and the bonds issued by corporations. Corporate bonds are considered one of the major forms of investment vehicles where people save their money in order to plan for their retirement. Corporations issue bond so that they can raise capital; the investor is paid an interest on the invested amount by the corporation (Asquith & Au et al., 2013). There are many factors that affect the interest rate of a bond: the first factor is the level of risk involved; investor lends the money to the corporation and receives interest based ...

The economic downturn of 2008 caused trouble to the whole world as a result of the globalized market. Investors assumed that there was minimal or no risk in the global financial market leading to them adopting moral hazard. What made it even better was that they were investing in the real estate whose value was assumed could only go up. A person would purchase a home and then sell it later at a higher price. This mortgage craze began in the United States and soon spread to Europe and the rest of the world. Financial engineers created loan products that could be ...

There exists a difference between federal government’s debt and deficit and most people tend to confuse these two. The differences are outlined as below. Federal government’s deficit refers to a situation whereby any government spending surpasses its income that comes from tax revenues collected from the citizens and other sources by any amount. Government deficit has some effects in a country’s economy. For example, it causes inflation which can be described to as the increase of the amount of money in circulation resulting to high pricing of goods. Federal government’s debt on the other hand refers to a given ...

The European Union was hit hard by the economic crisis. According to the statistics published by the European Commission, the business investment rate keeps falling in the euro area. The unemployment rate is very high and keeps stable at 12.1% in the Eurozone and 10.9% in the European Union. The Eurozone government debt is about 92.7% of GDP and the forecasts made by the Organization for Economic Cooperation and Development are not that good, predicting just 1% economic growth in 2014.
Besides the economic problems of the European Union, there are many other current issues regarding the European ...

CEO of Fluidigm had evidenced the effects of the financial meltdown on the startup businesses in U.S. but had just made its chipmaker public. All the investors were fearful and Worthington understood that he could not proceed any further. The company is low in cash at the moment and yet has high hopes of capitalizing on the opportunities in the future. The available cash was $32 million where each quarter around $7 million was being utilized. Even though he realized that the company would run out of cash by end 2009, Worthington wouldn’t cut back and focused on ...

The Ford Pinto Case

The Ford Pinto Case is arguably one among the most controversial cases on matters of ethics and criminality. While some think that the case is the perfect definition of legality versus ethics, other think that this is more a matter of ethical conduct in the corporate world. The case revolves around the design of the subcompact Ford Pinto Car that was designed in the late 1960s and grew popular in the early 1970s. The crash tests on the car indicated that the design was not satisfactory as it exposed the users of the car to potential burn injuries and deaths ...

International Finance Management

Reference list .
Introduction
Increasing participation in international trade exposes companies to the exchange rate risk. That owes to the possible loss of value in the amounts that are to be received for exports or the increase in the amount that has to e paid for imports. In that respect, companies need to apply strategies to manage the risk through various available techniques. In that view, this report presents a demonstration of those techniques’ application with reference to a company involved in payments and receipts of foreign currency. The report presents an analysis of the forward, swap arrangements and futures ...

Introduction

In a free market structure, the price of commodities is determined by the market forces of demand and supply. Price determination, which is either a reduction or an increment, is determined by the availability of goods and services and the availability of demand in the market. When the commodities supplied are higher than the quantity demanded, prices are likely to be lower whereas when the demand is greater than supply, the prices of goods are likely to be higher. An equilibrium price was attained when the rate of quantity required is equal to the amount provided in the market. On the ...

Executive Summary

The beginning investment portfolio was composed of ten Dow Jones Industrial 30 stocks that totaled an investment of $498,598. A hedging tactic was applied in order to have the capacity of liquidating the put options at prices that are close or in the money on the present Dow 30 portfolio. This tactic is applied in order to reduce the potential of risk in the event that the market goes flat or in the declining direction during the next year and a half. The selling of the put requests against the value of the beginning investment at strike values that ...

The great depression refers to longest economic crisis that was witnessed in the west. The great depression is attributed to the downfall of the Wall Street in the United States where there was a dramatic fall of the stock market. The crisis was so intense that it led to the elimination of well-established investors who had put their resources into different business in the country. The crisis led to a decrease in sales; the number of investors and there was a high unemployment rate since most organizations were forced to lay off workers (Robbins 24). This is because, in such an economic ...

Investment Options Recommendations

Introduction
This paper entails an analysis and review of the available investment options in companies that fall within the start-up economy category. This analysis is based on the specific investment needs of a client who wishes to invest some of his capital in a non-publicly owned firm. The client is 50 years old, and this implies that his investment risk profile is not as high as that of relatively younger investors. In this regard, this paper will advise the client on the stock investment options that are available in his preferred company profiles. Accordingly, this paper will focus on the ...

Investment Management

Investment Management

Introduction

This paper entails a discussion of two key principles investment management that are currently in play in today`s financial markets. The first part of the paper entails a discussion on the Capital Asset Pricing Model and its subsequent application to a real life situation. The second part of the paper entails a discussion on assessment of the performances of two respective mutual and pension funds that are invested in Argentinian junk bonds.

According to Levy (2011, pg. 55), the Capital Asset Pricing Model (CAPM) is used in the determination of the required rate of return of various risky assets such ...

Introduction

This paper entails a detailed discussion and summary of what I experienced and learnt through my participation in the Financial Markets course, which formed part of my graduate studies. Having recently joined the financial services sector as a junior analyst at a large investment bank, my participation in this course has enabled me to gain practical and knowledgeable financial insights that I have applied both at work, and in other real life situations. Prior to joining the financial services sector, I previously worked as a litigation attorney in a mid-sized law firm located within my metropolis. My participation in this course has, therefore, equipped ...

Earnings Per Share is a very important ratio for the investors and companies alike in order to make investment decisions and used by stock investors to make buy, sell and purchase decisions. Earnings Per Share is a profitability ratio. The numerator of the ratio is made up of earnings of the company. The earnings figure is obtained by using the company’s Profit After Tax (PAT) figure. PAT is obtained by subtracting all the operating expenses, interest expenses, and all the taxes are owed by the company from the revenue or sales figure of the company. The denominator of the ratio ...

A bias according to which people have a habit of accepting as true is “the law of small numbers”; that bias is a tendency to make assumptions based on small quantities of information. For instance, if a hedge fund executive had successful fiscal results for two years in a row, a lot of people would think that the hedge fund executive is himself above average, however this assumption is not considered valid, stemming from such a small number of years. Another example of this biased assumption is when you think you can guess if the next coin toss will be heads or tails, when the ...

1. The conflict of interest, as Spitzer put it was that he was a player in the game he was promoting. A good analogy for what he did would be for a baseball player to bet on a gaming he is playing in—which is against the rules in major league basement. An investment banker, or a person who convinces investors to invest in certain stocks, should make their living off of these stock doing well. They should not make their living off getting commissions from the stock companies that they are convincing companies to invest in. Grubman’s obligation to his investors ...

Texas Water Shortage

Most Texans are acquainted with the impacts of the 2011 dry spell. Watering limitations in the enormous urban areas may have just been minor bothers, yet news pictures of starving cows and boiling over out of control bonfires made it hard to overlook the giganticness of the disaster . A few assessments put horticultural misfortunes at more than $7 billion. Watering system for rice ranches and farming downstream from Austin was cut off by the Lower Colorado River Authority without precedent for more than 70 years. Twenty-three open water frameworks reported having short of what six months' water supply. The ...

Under fixed income investment, the investor gets a certain agreed amount of return over a specified period. The issuer is obliged to pay interest after a specified period, and the principle amount is paid upon maturity of the investment. Fixed income investments are crucial in that there is an assurance of a fixed and constant return on their investment. The investor gets reliable and predictable source of revenue. In addition, fixed income securities help in diversifying portfolios thus stabilizing the overall return. This helps in maximizing profits while minimizing the risks. There is a large variety of fixed income securities, giving investors the freedom ...

Risk profile

As the world keeps changing, the needs of people also change. This means that the way investments are done in the new world should also change so as to meet the global portfolio. The risk analysis determines the global portfolio that most of the investors are putting along during their investment (Tung, 2014 p.102). Asset allocation such as mix of bonds, money market account, and real estates are some of the example of how investments are done in the new world. Before making any investment, it will be crucial if one conducts the personal risk analysis and then compare ...

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AIG has been among the leading companies in the insurance industry ranked 14th in the Fortune 500 companies, operating over a decade globally offering various insurance options for companies and individuals including 98% of the Fortune 500 companies, 96% of Fortune 1000, and 90% of Fortune Global 500, and insures 40% of Forbes 400 Richest Americans. With a strong history and reputation in the industry and persistent operations around the world, AIG was believed to be resistant to any crash or collapse. Huge amount of funds in terms of institutional investors, mutual funds, pension ...