In many cases, there are misconceptions about their ability to provide superior results in different kinds of market conditions. Yet, there are times, when these tools have been successful in helping investment managers and professionals to exploit these disparities. In this case, more research is needed to show why so many investors believe. That hedging and derivatives are important tools in providing superior returns.
However, Qiao (2012) found that hedging strategies will vary depending upon the levels of risk investors are seeking out. This means that they will more than likely will use derivatives to reduce threats in areas such as equity securities. Whereas, those who want to obtain higher returns will utilize derivates to increase their percentage gains. (Qiao, 2012)
The information from this source is useful in demonstrating how different classes of investors' will have contrasting attitudes and uses for derivates in relation to hedging. However, to provide more…...
mlaReferences
Aabo, T. (2011). Founder Family Influence and Foreign Exchange Risk. International Journal of Finance, 7 (1), 33 -- 67.
Bezzina, F. (2012). Exploring Factors Affecting the Proper Use of Derivatives. Managerial Finance, 38 (4), 414 -- 435.
Brown, G. (2001). Are Firms Successful at Select Hedging? The Journal of Business, 79 (6), 2925 -- 2949.
Khediri, K. (2010). Do Investors Really use Derivatives? Journal of Risk Finance, 11 (1), 62 -- 74.
Investor Satisfaction Case
A Business eport
INVESTO SATISFACTION EPOT
As requested, here are my findings on the investor satisfaction report as collated by our analysis department. Our investment brokerage firm is advised to follow up on the results to improve brokerage performance based on type of investment product purchased.
100 clients were randomly selected and asked a series of questions, the criteria being they must have purchased shares in any one of the funds. Investment counselors personally ask the client to rate their level of satisfaction with the product as high medium or low.
30% of our investors have invested in bond fund, 30% in the stock fund and 40% have invested in the tax-deferred annuity. We can deduce from the total population data that 40% of all clients displayed high satisfaction, 40% displayed medium satisfaction and 20% displayed low satisfaction (Table 2.17).
Stock fund clients report high satisfaction generally across our tabulation results, bond fund…...
mlaReferences
C. Blake. "The Performance of Bond Mutual Funds." Journal of Business 66 (2005), 371403.
J. Clements. "Risk-Takers Believe Leveraged Muni Funds May Provide Quick Score if Interest Rates Fall." Wall Street Journal (September 26, 2004), C2.
S. Collins and P. Mack. "The Optimal Amount of Assets under Management in the Mutual Fund Industry." Financial Analysts Journal 53 (September / October 2007), 67-73.
K. Damato. "Grenfell Funds' Woes Aren't Uncommon." Wall Street Journal (September 5, 1996), C1.
Investor Soft
Before starting a new business venture, it is important to take into account the both the potential benefits and possible drawbacks of the new venture. The opportunities and challenges should be in appropriate balance for the business venture to be viable in terms of the future. When considering the InvestorSoft opportunity, a number of things present both opportunities and challenges. InvestorSoft offers many benefits that can be set in contrast to its competitors.
The greatest benefit that the venture might offer its clients is time savings. The service would, for example, offer significant time savings in terms of managing technical problems and waiting for IT revisions by professionals in the field. Investor relations professionals would be able to use the software to update their investor relations website without waiting for third parties to do so for them. The elimination of the wait time invested in this would then also result…...
mlaReferences
Kalyanaram, G. And Gurumurthy, R. (n.d.) Market Entry Strategies: Pioneers vs. Late Arrivals. Best Practice. Retrieved from: http://www.wright.edu/~tdung/entry.pdf
Market Segmentation and Positioning. (n.d.) Retrieved from: http://www.oup.com/uk/orc/bin/9780199290437/baines_ch06.pdf
The ScenarioAn investor is buying a house and the bank offers them a point equal to 1 percent of the loan amount to reduce the APR from 6.5 percent to 6.25 percent on their $400,000 30-year mortgage. This assignment seeks to determine when the investor should and should not buy the point if they:a) Plan to be in the house for less than five yearsA point equal to 1 percent of the loan amount would be 1% of $400,000 = $4,000Further, we need to convert the APR to the effective annual rate (EAR) at which the bank will charge interest.Most mortgage loans are compounded monthly. Assuming a monthly compounding, we can obtain the EAR as follows (Berk et al., 2021):EAR = (1 + APR/k)k where k is the number of compounding periods, which is 12 monthsIf APR = 6.5%; EAR = (1 + 0.065/12)1/12 = 0.045%If APR = 6.25%, EAR…...
mlaReference
Berk, J., DeMarzo, P., & Harfod, J. (2021). Fundamentals of corporate finance (5th ed.). Pearson.
Siegel, C. (2022). More work or more free time: The crucial political issue that no one is talking about. Omo Press.
Tan, S. T. (2012). Applied mathematics for the managerial, life, and social sciences (6th ed.(. Cengage Learning.
Economic Impact of Cannabis
The economic-themed article chosen for this paper is from Forbes, and it takes a position that would have been considered controversial, even outrageous, just a few years ago. The writer asserts that marijuana is considered the "best start-up opportunity" for entrepreneurs in 2015. This paper will present a review and critique of the article. At the end of the bibliography the link to the story is provided. Marijuana can become a huge boost to state's economies, and in time, according to the article, many states will benefit economically.
hy Legal Cannabis Is 2015's Best Startup Opportunity
Journalist Carol Tice, who covers entrepreneurship issues and startups for Forbes, explains that helping develop the legal marijuana industry is a smart way to launch a business in 2015. Twenty-three states now have legal marijuana for medical purposes, which means with a doctor's prescription (and a state ID in many cases) a person…...
mlaWorks Cited
Tice, C. (2015). Why Legal Cannabis Is 2015's Best Startup Opportunity. Forbes. Retrieved February 9, 2015, from Forbes.com.
Below is the link to this story -- not the link to Forbes per se.
The following hypotheses are proposed to focus the research:
Ho: There is no relation between investors' level of knowledge of derivatives hedging and their perceptions of asset managers' strategies.
H1: Investors with high levels of knowledge of derivatives hedging perceive their asset managers' strategies more positively than do investors with lower levels of knowledge about derivatives hedging.
Ho: There is no relation between variation in managerial disclosure parameters and the reactions of investors to earnings surprises.
H1 Increases in the frequency or duration of managerial disclosure parameters are associated with greater levels of acceptance and positive perception of earnings surprises by investors.
Methodology
Data Collection
In order to gather information about how research participants perceive derivatives hedging, the sample population will be asked to respond to a survey. Both active and non-active users of derivatives will respond to a semi-structured questionnaire. The questionnaire items will be designed to measure the aspects of investing that affect the…...
mlaReferences
Afifi, A., Clark, V. And May, S. (2004). Computer-Aided Multivariate Analysis. 4th ed. Boca Raton, FL: Chapman & Hall/CRC.
Bezzina, F. And Grima, S. (2012). Exploring factors affecting the proper use of derivatives: An empirical study with active users and controllers of derivatives. Managerial Finance, 38(4), 414-434. (Emerald Group Publishing Ltd.).
Reynolds-Moehrle, J. (2005). Management's disclosure of hedging activity: An empirical investigation of analysts' and investors' reactions. International Journal of Managerial Finance, 1(2), 108-122.
Saunders, M. (2003) Research Methods for Business Students. New York, NY: Pearson Education.
Customer vs. Investors.
To begin, customers are the central component of any successful business. A relentless approach to customer satisfaction is what has created some of the world's greatest companies. To be successful, corporations must address a specific need by a customer, and satisfy that need better than the competition. As such, investors prosper as the companies they own perform well for the customer. This is the only manner in which investors can prosper. If customer needs are not being adequately addressed, the investor suffers as consumers leave to a competing firm. Therefore, it is my belief that John McKay is correct in his assertion that companies must put customers ahead of investors (Pride, 2008).
Investors exist only because there is a viable market for the goods and services their companies provide. If no demand for these services existed, investors would subsequently not exist. By providing these services investors deserve to obtain…...
mlaReferences
1. Kali-ski, B. (Ed.). Ethics in Management. (2001). Encyclopedia of Business and Finance (2nd ed., Vol. 1). New York: Macmillan Reference.p.2. Swire, 1997
2. Armstrong, Scott (1977). "Social Irresponsibility in Management." Journal of Business Research (Elsevier North-Holland Inc.) 15: 185 -- 213.
3. Carpenter, M., Bauer, T. & Eiderdown, B. (2010). Principles of Management v1.1. Arlington, NY: Flat World Knowledge.p.3.
4. Pride, William M., Hughes, Robert James, & Kickapoo, Jack R. (2008). Business (9th ed.) Boston, MA: Hough-ton McFarland Company. ISBN 0-618-77091-7
Satisfy Its Investors, Cash-ich Apple Borrows Money, authors Peter Lattman and Peter Eavis provide insights into why Apple senior management chose to initiate and complete a record-sized bond deal of $17B. One of the primary motivations for amount of bond debt taken on by Apple is to stabilizing their continually dropping stock price, a concern of public and private or institutional investors alike (Mackenzie, odrigues, 2013). Apple has said that this bond issue is part of a planned $100B payout to investors by 2015, which is a core part of their strategy to retain institutional investors as the largest percentage of their stock ownership (Seitz, 2013). The intent of this analysis is to provide an overview of the article To Satisfy Its Investors, Cash-ich Apple Borrows Money followed by an analysis of the article and discussion of its relevance to financial management.
Article Summary
The article provides a synopsis of the…...
mlaReferences
Burne, K., & Cherney, M. (2013, May 01). Apple's record plunge into debt pool. Wall Street Journal.
Mackenzie, M., & Rodrigues, V. (2013). Apple cleans up with $17bn U.S. bond issue. FT.Com,
Seitz, P. (2013, Apr 30). Apple sells $17 billion in bonds in historic offering. Investor's Business Daily.
Anti-Trust
Are investors' legal remedies enough?
During the 1990s, a wave of legislation substantially deregulated the financial industry, effectively limiting the ability of investors to seek legal remedies in the wake of corporate fraud, and freeing corporations to take greater risks with 'other people's money.' The Private Securities Litigation eform Act of 1995 (PSLA) overturned the protections once provided by the 1934 Securities Exchange Act (Nations 2012). Then-President Clinton vetoed PSLA, and as predicted, since its passage, "many citizens seeking redress for losses as a result of negligent or intentional misrepresentation, fraud, breach of fiduciary duty, or other misconduct in the purchase, sale, or offer for purchase or sale of securities have found their federal rights substantially reduced and have been forced to seek redress under state rather than federal law" (Nations 2012). PSLA allowed corporations greater legal protection if they inserted a disclaimer that projected future profits were uncertain, increased investor's…...
mlaReferences
Hiltzik, Michael. (2012). We need a stronger Glass-Steagall Act to regulate financial firms.
LA Times. Retrieved: http://articles.latimes.com/2012/may/30/business/la-fi-hiltzik-20120530
Nations, Howard. (2012). Remedies for wronged investors. The Nation Blog. Retrieved:
This is because the majority of investors will more than likely focus on analysts' forecasts and remaining to close company estimates. This is problematic, because it means that investors and traders will tend to under react in the stock. Where, the philosophy that is used by Numeric Investors can spot when changes that are taking place in the momentum of the company early. At which point, they can either go: long or short and then ride the stock all the way up / down. Once this occurs, it means that the overall return is greater, by taking advantage of the different anomalies. ("Numeric Investors," 1997)
The Value Strategy
Over the years, Numeric Investors also discovered that many of different momentum and value orientated stocks moved in a similar fashion. As the strategy could identify what specific stocks would be the best candidates to realize the projected price targets, while ignoring companies…...
mlaBibliography
Numeric Investors. (1997). Harvard Business School.
Accounting
From an investor's perspective, what is the most important information on the income statement? Why? From management's perspective, what is the most important information on the income statement? Why?
The income statement, also called the profit and loss statement is the financial statement that details a company's sales and earnings. When evaluating an income statement, the savvy investor usually wishes to maximize his or her immediate or long-term ability to make a profit on a stock. Thus, conventional wisdom holds that investors should buy when a stock's price to earnings ratios are low and sell when these ratios are high. In other words, if a stock stands to earn a great deal and has a strong track record of doing so, yet is priced relatively cheaply in relation to those future earnings, it is wise for an investor to buy that stock. The reverse is true as well, though -- if…...
Exchange Traded Funds offer market participants with a low-cost alternative to mutual funds and other portfolio management tools. Exchange Traded Funds are primarily used by investors to gain exposer to a particular industry, market, or product category. Funds can range from the highly popular S&P index offered by Vanguard to the more esoteric funds such as the 3x Leverage Dow Funds. Generally speaking, ETFs can lower investor risk by providing then with a security that is diversified such as the Nasdaq ETF or the S&P 500 ETFs. Here investor hold a subset of American business and benefit in proportion to their respective indexs performance over time.However, of late, investors are using ETF not as an investment vehicle but as a gambling or speculative investment. Here, the risk is much higher as many investors do not take the time to read the prospectus to properly ascertain what they are holding. In…...
mlaReferences
1. Ackert, L. F., & Tian, Y. S. (2008). Arbitrage, liquidity, and the valuation of exchange traded funds. Financial markets, institutions & instruments, 17(5), 331-362
2. Avellaneda, M., & Zhang, S. (2010). Path-dependence of leveraged ETF returns.SIAM Journal on Financial Mathematics, 1(1), 586-603.
Shark Tank
The type of business that Jake is pitching to the sharks is a restaurant business that is a cultural blend of Asian (Korean) and Mexican food: Jake calls it Chi’Lantro and it serves Korean BBQ tacos out of food trucks and restaurants. The entrepreneur’s offer is 15% of his business for $600,000.
4 of the 5 sharks passed on the offer. One said that he was not into growth capital but rather was into helping to launch a new idea: he did not see Chi’Lantro as really being a new idea, so he passed. Another said he did not like investing in restaurants because of the constraints on the business model—such as location (if location is not good, the business suffers and that eats at the investment). Two others said they did not like investing in restaurants because there is too much risk, too much involvement that is required, and…...
High liability balances might indicate that a company is not in a very secure position going forward; however, it depends on what kind of company it is. If it is a growth company, which is projected to grow earnings exponentially in the coming years, high liability balances might not be a bad sign. For example, Netflix had high liability balances for many of its early years, and many were skeptical of its growth potential, particularly because it failed to show much revenue. However, it continued to grow subscribers and put its competition out of business by killing off Blockbuster. On the contrary, it could indicate that lenders and investors are satisfied with the company’s business plan and thus do not see the liabilities as a problem. However, if the company is in the decline phase of its life cycle, high liability balances could mean that bankruptcy is imminent, especially if…...
mlaReferences
Hama, A., & Santosa, H. P. (2018). Effect Of Working Capital, Company Size, And Company Growth On Profitability And Company Value. PEOPLE: International Journal of Social Sciences, 4(2).
Investor Information
Financial statements are the primary way for an investor, creditor, and other financial statement users to evaluate a company's financial performance, financial stability, profitability, and net worth to determine whether putting investments in the company would provide profitability and adequate return on investments (Way, 2013). Financial statements are also a way for managers to communicate achievements in performance to potential investors and creditors. The various statements brings various information components in the determination of evaluating companies for potential investments.
In evaluating Apple, Inc., the Income Statement shows net income for 2012 at $41,733 million (Form 10-K, 2012), up from $25,922 million in 2011. The income statement reports sales, expenses, and profits or losses. This is important to an investor because it shows results from operations in how profitable a company has been for the particular period. y evaluating present results against past performance, investors can assess for uncertainty in cash…...
mlaBibliography
Form 10-K. (2012, Sept 29). Retrieved from Apple, Inc.: http://files.shareholder.com/downloads/AAPL/25...21359901x0xS1193125-12-444068/320193/filing.pdf
Way, J. (2013). What is the importance of a company's financial statements? Retrieved from Chron: http://smallbusiness.chron.com/importance-companys-financial-statements-21332.html
Right now, it is impossible to discuss the financial markets without looking at what happened with GameStop stock, so we are going to focus our example essay outline on this event. To understand how a bunch of small investors organizing on social media were able to disrupt hedge fund managers and traditional ways that they profit off of failing companies, it is important to understand the concept of shorting stocks.
I. Introduction
A. Stock shorting
B. Why businesses fail from stock shorting
C. Why GameStop was vulnerable
D. The impact of purchasing GameStop....
1. The impact of social media sentiment on cryptocurrency prices
2. The role of government regulation in shaping the crypto market
3. Cryptocurrency adoption in developing countries
4. The potential for decentralized finance (DeFi) to revolutionize traditional financial systems
5. Cryptocurrency market manipulation and its implications
6. The environmental implications of cryptocurrency mining
7. The future of stablecoins and their role in the crypto market
8. The rise of non-fungible tokens (NFTs) and their impact on the art market
9. The influence of institutional investors on the cryptocurrency market
10. The challenges and opportunities for mainstream adoption of cryptocurrencies
11. The psychological factors influencing investor behavior in the crypto market
12.....
## Crypto Market Dynamics and Emerging Trends
### 1. Decentralized Finance (DeFi)
- Growth and Innovation: DeFi protocols offer a range of financial services, such as lending, borrowing, and trading, without the need for intermediaries.
- New Tokenomics: DeFi introduces innovative token designs that reward liquidity providers and community members.
- Interoperability: Cross-chain bridges allow users to transfer assets across different blockchains, facilitating DeFi activities.
### 2. Non-Fungible Tokens (NFTs)
- Digital Collectibles and Art: NFTs represent unique and verifiable digital assets, enabling the ownership and trading of digital art, collectibles, and other items.
- New Markets: NFTs create new markets for digital creators, artists, and collectors.
-....
1. Unethical Practices: A Scrutiny of Corporate Greed and Moral Decay
2. The Shadow of Unethicality: Unveiling the Perils of Unprincipled Behavior in Business
3. The Moral Compass in the Marketplace: Reorienting Ethical Standards in Corporate Decision-Making
4. A Path to Perdition: The Consequences of Unethical Practices in the Business World
5. Deconstructing Unethicality: Exploring the Motives and Manifestations of Corporate Malfeasance
6. The Corrosion of Trust: How Unethical Practices Undermine Business Integrity and Public Confidence
7. Ethical Erosion: A Systemic Analysis of the Factors Contributing to Unethical Behavior in the Workplace
8. The Triple Bottom Line of Unethicality: Impacts on the Economy, Environment, and Social Well-being
9.....
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