Can derivatives be viewed as investment intruments?
Yes. Derivatives are instruments of investment for the knowledgeable financial people. Novice and intermediate investors should keep away from derivatives.
What does AMEX stand for in the stock market?
The letters AMEX stand for American Express. AMEX is a global financial services. The American Express Company is known for its credit card and business card. One of his most famous slogan was: "Do not leave home without it." AMEX was founded in 1850 by Henry Wells, William Fargo and John Butterfield Warren as a courier business in Albany, New York. In 1882 American Express has begun its expansion in the financial services sector by launching a turnover. American Express in 1915 established a division of travel. The American Express card was launched on 1 October 1958.
What are objectives of technical analysis....why to study it and what are its uses?
The point of technical analysis is to properly identify setups where you historically have a high probability of success on any given trade, ideally along with a favorable risk to reward ratio. Psychic ability is an unrealistic goal from using charts, but skewing the odds into your favor is not. In order for a technical trader to have long term success, he/she likely will need to continually alter, tweak, and refine his methods, to compensate for an ever dynamic market.
Where can you put your money to earn monthly income besides the annuity CD stock market?
As retired employee in addition to investing in stocks I have deposited a reasonable amount in banks to get monthly interest, and kept some amount in the shape of liquid cash to meet any untoward emergencies.
The market figures are results of all trades of the day from the carryover. Individual stocks go up, and others down, the net effect of ups and downs adjust the prior days carryover. As the market is said to go up 100 points, that is the net of all sales; losers and winners net effect... the balance from start to finish is maintained until 4 PM when markets close, the closing balance is carried over to the next day to start again. You can later take each day start and end and match them to view the fluctuation of the market for any period of time.
What is the formula for calculating wacc?
The Weighted Average Cost of Capital (WACC) reflects the average 'cost of financing' for a firm. Firms raise money in several ways, such as issuing equity, debt, and preferred stock. The WACC is calculated by taking the (after-tax) 'cost' of each of these forms of financing and multiplying it by the relative proportion of total financing represented by that form of financing.
The full formula for WACC is:
where
rD = The required return of the firm's Debt financing
(1-Tc) = The Tax adjustment for interest expense
(D/V) = (Debt/Total Value)
rE= the firm's cost of equity
(E/V) = (Equity/Total Value)
V = (D + E), ie Total Firm Value
To calculate the WACC for a publicly traded company, there is an online WACC Calculator available at http:/www.ThatsWACC.com
What does a financial adviser do?
people give money to a financial advisor and he invests the money for them hoping to get a great return for the money invested.
The Goals of The Marketing System?
what are the goals of marketing system
-buyers want god quality products at reasonable prices in convenient locations
-they want wide brand and feature assortment
-helpful, pleasant, and honest sales people and strong warrantly backed by good follow-p service
What is maximazation of shareholders wealth and profit?
The maximization of a shareholder's profit is at a point where the value of share is maximum and dividend on the share paid by the company is also very high but only few successful companies give such profit maximization to their shareholders and the listings of such companies can be found out on activetrader-links.com for investment purposes.
What are the 7 rules of princable?
How does a portfolio with 2 stocks decrease if both stocks are increasing?
The value of a portfolio may decrease when the stocks are increasing in price if the portfolio owner is making bets that the stocks will decrease in price. One way to do this is by short selling ('shorting') a stock. This essentially means you borrow the stock and then immediately sell it, in the hope that the stock will decrease in value so you can buy it back at the lower price (the opposite of buying a stock and hoping for an increase in value).
What are the possible problems with speculation?
A possible problem with speculation is that if someone were to speculate on results and get them wrong, then people could be disappointed. When speculations happen, it is hard to determine when they will be correct.
How do stock market analysts use calculus?
Analysing the stock marketinvolves a lot of probability theory, which is very heavy on calculus.
Explain the major factors that influence the kind of exchange rate system a country has?
Foreign Exchange being a commodity like any other commodities tends to fluctuate in price from time to time. There are various factors that cause the fluctuation in the rates of exchange; * Rising interest rates cause 'hot' money to flow into the economy, therefore the demand of the domestic currency increases, and thus the currency appreciates in value and demand. * Relative inflation rates, affect the economy's international competitiveness, so if the economy is experiencing higher inflation rate than its trading partners, its purchasing power is eroded and thus the demand for that particular currency. * Speculation normally affects the currency value when there is belief that a particular economy is 'over heating' and that soon there will be devaluation, then chances are high that, speculators will pull out their monies, causing there to be more supply than demand on the Forex for that particular currency, hence its depreciation. * International trade affects the value of a currency, particularly through how much export or imports a nation may have, countries selling so many goods and services to others, tend to appreciate their Forex standards and those importing highly normally have their currency fall in value since they are spending more to their trading partners than they gain from them. * Political and psychological factors are believed to have an influence on exchange rates. Many currencies have a tradition of behaving in a particular way for e.g. Swiss franc as a refuge currency. The US Dollar is also considered a safer haven currency whenever there is a political crisis anywhere in the world. * Governments sometimes participate in the Forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower the price, or conversely buying in order to raise the price. This is known as Central Bank intervention. However, the size and volume of the Forex market makes it impossible for any one entity to "drive" the market for any length of time.
How do you explain the Black-Scholes formula?
Well...the way I'd explain it is as "the worst atrocity ever inflicted on the financial world." Which may not be specifically true, but it's not far off.
Black-Scholes is a neat schoolhouse formula for determining The Proper Price To Trade Options At.
Here's the problem: Black and Scholes assume there's only one risky item in an options transaction, and it's the stock. The money you use to buy it is considered riskless, and you can borrow as much as you want at a low interest rate. There are no transaction fees, and you can sell even a fraction of a share of stock. Unfortunately, none of those things are actually true.
Those who believe in Black-Scholes believe you can put hard, scientifically-valid formulas to work to determine the price of something which can't actually be priced out that way, and they've cost people a LOT of money by doing it.
One View...well maybe you could........
have a lemonade stand
have a car wash
baby sit
walk dogs
pet sitter
garage sale
bake sale
or anything you could think of would be great
Another View...there are many legit ways to make money that some people don't even know about. Did you know that you could make money by just filling out surveys online? All you need is Internet access an a computer. You don't even have to pay to take the surveys you just sign up. Just make sure you have enough time on your hands because it can be time consuming but the cash you can make is definely worth it. Check out the related links to this answer if you're interested!
How does the dupont system break down return on assets?
The Du Pont System The returns on investment ratios give us a "bottom line" on the performance of a company, but don't tell us anything about the "why" behind this performance. For an understanding of the "why," the analyst must dig a bit deeper into the financial statements. A method that is useful in examining the source of performance is the Du Pont system. The DuPont system is a method of breaking down return ratios into their components to determine which areas are responsible for a firm's performance. To see how it's used, let's take a closer look at the first definition of the return on assets: Basic Earning Power =EBIT / Total Assets Suppose the return on assets changes from 20% in one period to 10% the next period. We do not know whether this decreased return is due to a less efficient use of the firm's assets-that is, lower activity-or to less effective management of expenses (i.e., lower profit margins). A lower return on assets could be due to lower activity, lower margins, or both. Because we are interested in evaluating past operating performance to evaluate different aspects of the management of the firm and to predict future performance, knowing the source of these returns is valuable. Let's take a closer look at the return on assets and break it down into its components: measures of activity and profit margin. We do this by relating both the numerator and the denominator to sales activity. Divide both the numerator and the denominator of the basic earning power by sales: Basic Earning power = (EBIT / Sales)(Sales/Total Assets) This says that the earning power of the company is related to profitability (in this case, operating profit) and a measure of activity (total asset turnover). Basic earning power = (Operating profit margin) (Total asset turnover) If we are analyzing a change in basic earning power, we therefore know that we could look at this breakdown to see the change in its components: operating profit margin and total asset turnover. This method of analyzing return ratios in terms of profit margin and turnover ratios, referred to as the Du Pont System, is credited to the E.I. Du Pont Corporation, whose management developed a system of breaking down return ratios into their components.
Where is smart money investing now?
By way of analogy, you could ask... how do "Fitness Experts" exercise? Or how do "Health Conscious" people eat? Answer= regular balanced exercise, or regular balanced meals.
Smart investors invest regularly (Monthly) into conservative broad based investments , an example would be into very low cost index trackers
Smart investors don't buy heavily into any one sector or company, any more than smart exercisers exercise only biceps (For example).
If an investor wants to buy heavily into (lets say) gold, then go for it. But don't call it investing. Call it by the proper term... Gambling. Who knows, you might get lucky. Don't most gamblers?
Cheers
How do you calculate net open position in financial market?
Net spot position: all assets (gross of provisions for bad and doubtful debts) less all liabilities, including accrued interest, in the currency in question;
+ Net forward position, all amounts to be received less all amounts to be paid under forward exchange transactions, including currency futures and the principal on currency swaps not included in the spot position;
+ Irrevocable guarantees (and similar instruments) which are certain to be called;
+ Net future income/expenses not yet accrued but already fully hedged;
+ Profits (net value of income and expense accounts) held in the currency in question;
+ Specific provisions held in the currency in question where the underlying asset is in a different currency;
- Assets held in currency in question where a specific provision is held in a different currency;
+ The net delta (or delta-based) equivalent of options book, if this is the approach taken to
measurement of option risk (this method needs the authority's approval).
= Net open position (As indicated by Appendix I - C, for supervisory reporting purposes, separate
returns of long and short positions must be submitted to the authority).
Why are repossessed cars so cheap and what is wrong with them?
Watch out for 'flooded' cars from down south!
They were repossessed, which means the individuals did not make payments on them. Which means they probably didn't bother with routine maintenance, such as oil changes. There is no telling what condition they are in.
How do I take the stock deck out of my 2000 grand am so I can put an after market deck in there?
It should be very simple. The trim around the deck should snap off pretty easily. Then there should be 4 7millimeter screw securing it in the dash, removie those. Unplug the harness, DO NOT CUT IT OFF!! I cant stress this enough. Youll need to buy a dash kit to make it fit correctly, a harness for the wiring, and a GM antenna adapter. You can go without the antenna adapter if you dont listen to radio, but if you do you absolutely need it. Get a harness that plugs into the stock wiring harness, it makes it really easy to install plus if you ever sell the car the factory radio plugs right in. The harness is color coded so you just match color to color basically with the deck harness. Just shell out the 53 bucks its gonna cost you for the parts or youll turn a hour job into a day job.
And this would happen: While the bank with 5.5 interest would experience a demand for loans, the bank with 6 percent interest would experience a surge in deposits. As a result, the interest rate at the first bank would increase while the interest rate at the second bank would decrease.
Why should you invest overseas during a recession?
I'll get it started, investing overseas can be considered diversification of your portfolio. An account investing overseas is not as susceptible to US market fluctuations and gives you a chance to have stock in companies in other markets. While this is all true, it turns out as we've seen in the recent financial crisis that the US market can have much effect on other markets.