Goals Information and Trading
|
|
- Stephanie Page
- 8 years ago
- Views:
Transcription
1 Information and Trading Economics 71a Gitman/Madura Chapter 16 Lecture notes 9 Information sources Information Sources Web Private Free and subscription Government Federal Reserve Information Sources Key publications Economic information Federal reserve bulletins (economic info) Firm/investment data Value Line Survey Standard and Poor s Handbook Security firm reports Firm annual reports
2 Value Line Investment Survey Subscription information service Very complete Both financial data, and proprietary estimates See both page 503 and the value line website Insider Trading Information Inside Information Information about a firm not provided to the public Insiders (managers) are not supposed to trade on inside information Must reveal trades to Securities and Exchange Commission These trades then are made public Might still signal confidence or lack of confidence by management team Analyst Information Firms reveal information to analysts Analysts recommend (buy, sell, hold) Problems: Firms often are biased in what they tell analysts Other Information Events Dividends Earnings surprises Acquisitions Secondary stock offerings Often negative reaction Firm thinks price high Dilutes current share holders Stock repurchases Often positive Firm thinks stock overvalued
3 Information sources Securities Exchanges NYSE AMEX/NASDAQ Floor (AMEX) Electronic dealers (NASDAQ) Foreign markets Foreign investments in US ADR s (American depositary receipts) WEBS (World equity benchmarks) Information sources Market Orders Limit Orders Stop Orders Transactions
4 Market Order Buy or sell at the current market price No restrictions Buy 50 shares at market Limit Orders Buy when price drops below a limit Sell when price moves above a limit Example Limit buy at 50 (price at 60) Stock moves to 55 (nothing happens) Stock moves to 49 (order executed) Advantage Might end up with a better price Disadvantage Order might end up unfilled Stop Orders Buy if price reaches a certain level Going up Sell if price reaches a certain level Going down Kind of reverse of limit orders Costs of Trading Commissions Electronic trading cheap/simple Ameritrade /Etrade ($8) Discount brokers Full service brokers Bid/ask spread Buy at the ask Sell at the bid
5 Example: Ask 88.5, Bid = 88 Spreads may change Bid/ask Spread Over time Over stocks Reveal the ease of trading a stock Margins Short Sales Other Transactions Margins Borrowing money to buy stock, price = $5 Example: 50% margin, 10% interest Own funds = 100, borrowed = 100 Total shares = 200/5 = 40 Case A: Stock goes to $10 Sell for $400 Pay back loan -$110 Value at end = $290 = (more than doubled) Case B: Stock goes to $4 Sell for $160 Pay back loan $-110 Value at end = = 50 Margins Magnify gains and losses Can get in big trouble with losses Lose more than 100% of your starting value Previous example: price = $1 Ending value = -70
6 Short Sales Holding negative stock Sell stock you don t have Buy it back later Pay dividends yourself in between Key issue Make money on a price fall Lose money on a rise Betting against a stock The Mechanics of a Short Tell broker you want to sell 100 shares of IBM short (price = $50) Broker borrows shares of 100 shares of IBM owned by another client (Sam) Sells it to someone for 50*100=5000, and pays this to you When dividends are to be paid, you pay broker, and broker pays Sam The Mechanics of a Short Oddities About Shorts IBM goes down to $40 per share You buy your 100 shares to take you back to zero, pay broker 40*100=4000. Broker buys at market, and puts the shares back in Sam s account You make = 1000 (less dividends) Make money when price falls Lose money when prices rises Can lose unbounded amounts of money Normally only lose what you put in With short price can go up forever, and your losses keep increases Also, broker can get in trouble if you default Other customer could lose original shares Often insured for this Amount of shorts is interesting information on a stock (How many pessimists?)
7 Information sources Day trading Day Trading Trade by computer Trade at high frequency Several to many times per day Hope to make money off short term trends and patterns in prices Similar to other trading behavior, but now more generally available Day Trading (SEC report) May incur large losses High costs from trades Stressful/full-time Lots of margin buying Magnify small gains (and losses) Claims of easy profits exaggerated Don t believe classes Information sources
Outline. Securities Markets. Markets. Money and Capital Markets. Markets Orders Positions Information
Outline Securities Markets Economics 71a Spring 2007 Mayo, Chapter 3 Lecture notes 2.3 Markets Orders Positions Information Primary markets Markets New issues (IPO s, corporate and public debt) Secondary
More informationFinancial Markets And Financial Instruments - Part II. How Securities are Traded? Spread. Brokerage Accounts. Commissions. Commissions: Online Brokers
Financial Markets And Financial Instruments - Part II How Securities are Traded? Brokerage Accounts You can choose from two types of accounts to open To open an account, you need to choose a broker Commissions
More informationAnswers to Concepts in Review
Answers to Concepts in Review 1. (a) In the money market, short-term securities such as CDs, T-bills, and banker s acceptances are traded. Long-term securities such as stocks and bonds are traded in the
More informationHow Securities Are Traded. Chapter 3
How Securities Are Traded Chapter 3 Primary vs. Secondary Security Sales Primary new issue issuer receives the proceeds from the sale first-time issue: IPO = issuer sells stock for the first time seasoned
More informationInvestment Analysis (FIN 383) Fall 2009. Homework 2
Investment Analysis (FIN 383) Fall 2009 Homework 2 Instructions: please read carefully You should show your work how to get the answer for each calculation question to get full credit The due date is Thu,
More informationChapter 3. How Securities are Traded
Chapter 3 How Securities are Traded Primary vs. Secondary Security Sales Primary: When firms need to raise capital, they may choose to sell (or float) new securities. These new issues typically are marketed
More informationCHAPTER 3: ANSWERS OF HOW SECURITIES ARE TRADED
CHAPTER 3: ANSWERS OF HOW SECURITIES ARE TRADED PROBLEM SETS 1. Answers to this problem will vary. 2. The dealer sets the bid and asked price. Spreads should be higher on inactively traded stocks and lower
More informationInvestment Analysis (FIN 670) Fall 2009. Homework 2
Investment Analysis (FIN 670) Fall 2009 Homework 2 Instructions: please read carefully You should show your work how to get the answer for each calculation question to get full credit The due date is Tue,
More informationA stock is a share in the ownership of a company. Stock represents a claim on the company s assets and earnings.
Stock Market Basics What are stocks? A stock is a share in the ownership of a company. Stock represents a claim on the company s assets and earnings. As an owner (shareholder), you are entitled to your
More informationHow Securities Are Traded
How Securities Are Traded Chapter 3 Primary vs. Secondary Security Sales Primary new issue issuer receives the proceeds from the sale first-time issue: IPO = issuer sells stock for the first time seasoned
More informationWhen firms need to raise capital, they may issue securities to the public by investment bankers.
CHAPTER 3. HOW SECURITIES ARE TRADED When firms need to raise capital, they may issue securities to the public by investment bankers. Primary market is a market for new securities. Secondary market is
More informationMargin Requirements & Margin Calls
Margin Requirements & Margin Calls Dr. Patrick Toche References : Zvi Bodie, Alex Kane, Alan J. Marcus. Essentials of Investment. McGraw- Hill Irwin. Chapter 3 of the Bodie-Kane-Marcus textbook will be
More informationHow To Invest In Stocks And Bonds
Review for Exam 1 Instructions: Please read carefully The exam will have 21 multiple choice questions and 5 work problems. Questions in the multiple choice section will be either concept or calculation
More informationTrading Costs. Characteristics of well-functioning markets
Trading Costs Commission: fee paid to broker for making the transaction Spread: cost of trading with dealer Bid: price dealer will buy from you Ask: price dealer will sell to you Spread: ask - bid Combination:
More information3. If an individual investor buys or sells a currently owned stock through a broker, this is a primary market transaction.
Spring 2012 Finance 3130 Sample Exam 1A Questions for Review 1. The form of organization for a business is an important issue, as this decision has very significant effect on the income and wealth of the
More informationMargin Requirements & Margin Calls
Margin Requirements & Margin Calls Dr. Patrick Toche References : Zvi Bodie, Alex Kane, Alan J. Marcus. Essentials of Investment. McGraw- Hill Irwin. Chapter 3 of the Bodie-Kane-Marcus textbook will be
More informationCHAPTER 16. Stocks and Bonds
CHAPTER 16 Stocks and Bonds SECTION 1: Stocks Financial Markets Stocks and bonds are bought and sold in a financial market. Financial markets channel money from some people to other people. They bring
More informationC H A P T E R Investing in Stocks 421
Investing in Stocks C H A P T E R 15 Walter Woodward owned 500 shares of a stock that he bought at $40 per share. As the price rose steadily over the course of several months to over $48, Walter decided
More informationCOOLTRADE PERFROMANCE TIPS By Regina Guinn. Here are some things that subscribers should be aware of when running an automated trading platform.
COOLTRADE PERFROMANCE TIPS By Regina Guinn Here are some things that subscribers should be aware of when running an automated trading platform. Run Long and Short Strategies The markets go down, often
More informationGoing Public: Go Public Services, Reverse Merger and The Public Shell Information
Going Public: Go Public Services, Reverse Merger and The Public Shell Information Welcome to the Go Public Supersite & Going Public Portal offering information about reverse mergers, public shell corporations,
More informationLecture Two Essentials of Trading. Andy Bower www.alchemetrics.org
Lecture Two Essentials of Trading Andy Bower www.alchemetrics.org Essentials of Trading Why People Trade Money What People Trade Market Where People Trade Exchanges How People Trade Brokers Orders Margin
More informationPFIN 12: Buying and Selling Investments 78
PFIN 12: Buying and Selling Investments 78 12-1 Researching Investments OBJECTIVES Describe the types of financial information found in magazines, newspapers, and newsletters. Describe the type of data
More informationHow To Understand The Stock Market
We b E x t e n s i o n 1 C A Closer Look at the Stock Markets This Web Extension provides additional discussion of stock markets and trading, beginning with stock indexes. Stock Indexes Stock indexes try
More informationFinancial Markets and Institutions Abridged 10 th Edition
Financial Markets and Institutions Abridged 10 th Edition by Jeff Madura 1 12 Market Microstructure and Strategies Chapter Objectives describe the common types of stock transactions explain how stock transactions
More informationTypes of Stock. Common Stock most common form of stock. Preferred Stock. Companies may customize other classes of stock.
Stock Market Basics What are Stocks? Stock is ownership in a publicly traded company. Stock is a claim on the company s assets and earnings. The more stock you have, the greater your claim as an owner.
More informationXIV. Additional risk information on forward transactions in CFDs
XIV. Additional risk information on forward transactions in CFDs The following information is given in addition to the general risks associated with forward transactions. Please read the following information
More informationACTIVITY 20.1 THE LANGUAGE OF FINANCIAL MARKETS: DEFINITIONS
ACTIVITY 20.1 THE LANGUAGE OF FINANCIAL MARKETS: DEFINITIONS AMEX: The acronym stands for American Stock Exchange, formerly an independent market but now part of the New York Stock Exchange; the AMEX s
More informationInvestment Finance 421-002 Prototype Midterm I
Investment Finance 421-002 Prototype Midterm I The correct answer is highlighted by a *. Also, a concise reasoning is provided in Italics. 1. are an indirect way U. S. investor can invest in foreign companies.
More informationFinancial Markets And Financial Instruments - Part I
Financial Markets And Financial Instruments - Part I Financial Assets Real assets are things such as land, buildings, machinery, and knowledge that are used to produce goods and services. Financial assets
More informationStock Market -Trading and market participants
Stock Market -Trading and market participants Ruichang LU ( 卢 瑞 昌 ) Department of Finance Guanghua School of Management Peking University Overview Trading Stock Understand trading order Trading cost Margin
More informationThe Young Investor s Guide To Understanding The Terms Used In Investing.
The Young Investor s Guide To Understanding The Terms Used In Investing. The Young Investor Dictionary compliments of Integrity Mutual Funds. YOUNG INVESTOR DICTIONARY Asset Something of value. The property
More informationDetermination of Forward and Futures Prices
Determination of Forward and Futures Prices Options, Futures, and Other Derivatives, 8th Edition, Copyright John C. Hull 2012 Short selling A popular trading (arbitrage) strategy is the shortselling or
More informationEquities 2: The Stock Market
Equities 2: The Stock Market Jan 2016 Week 3, FNCE102 R. Loh Raising Stock Stock 1 Equities 2 overview Raising Stock Initial public offering Understanding IPO tombstone ads IPO underpricing offering Pricing
More informationUnderstanding Margin and Its Risks
Understanding Margin and Its Risks www.siebertnet.com Before opening a margin account, you should have a clear understanding of the basic facts about margin and the risks of trading securities on margin.
More informationAnswers to Concepts in Review
Answers to Concepts in Review 1. Puts and calls are negotiable options issued in bearer form that allow the holder to sell (put) or buy (call) a stipulated amount of a specific security/financial asset,
More informationFRIEDLAND CAPITAL INC. GUIDE TO AMERICAN DEPOSITARY RECEIPTS
FRIEDLAND CAPITAL INC. GUIDE TO AMERICAN DEPOSITARY RECEIPTS With global economies increasingly intertwined, it shouldn t come as a surprise that large numbers of non-us corporations have sought access
More informationHomework Margin Purchases. Dr. Patrick Toche
Homework Margin Purchases Dr. Patrick Toche A dagger indicates a possibly more challenging question. Maintenance Margin 1. You are bullish on Telecom stock. The current market price is $50 per share, and
More informationBEAR: A person who believes that the price of a particular security or the market as a whole will go lower.
Trading Terms ARBITRAGE: The simultaneous purchase and sale of identical or equivalent financial instruments in order to benefit from a discrepancy in their price relationship. More generally, it refers
More informationMarket Microstructure: An Interactive Exercise
Market Microstructure: An Interactive Exercise Jeff Donaldson, University of Tampa Donald Flagg, University of Tampa ABSTRACT Although a lecture on microstructure serves to initiate the inspiration of
More informationrrading Costs Buying on Margin 76 PART I Introduction
76 PART I Introduction E rrading Costs Part of the cost of trading a security is obvious and explicit. Your broker must be paid a commission. Individuals may choose from two kinds of brokers: full-service
More informationProblem Set 1 Foundations of Financial Markets Instructor: Erin Smith Summer 2011 Due date: Beginning of class, May 31
Problem Set Foundations of Financial Markets Instructor: Erin Smith Summer 20 Due date: Beginning of class, May 3. Suppose the debt holders of a cosmetics firm hold debt with a face value of $500,000.
More informationUnderstanding your account situation
Understanding your account situation This guide helps you to understand your account situation on Penson s intranet web site The first section describes what we think are the most useful pages of Penson
More informationI. Introduction. II. Financial Markets (Direct Finance) A. How the Financial Market Works. B. The Debt Market (Bond Market)
University of California, Merced EC 121-Money and Banking Chapter 2 Lecture otes Professor Jason Lee I. Introduction In economics, investment is defined as an increase in the capital stock. This is important
More informationTHE STOCK MARKET GAME GLOSSARY
THE STOCK MARKET GAME GLOSSARY Accounting: A method of recording a company s financial activity and arranging the information in reports that make the information understandable. Accounts payable: The
More informationJPMORGAN CHASE & CO FORM FWP. (Free Writing Prospectus - Filing under Securities Act Rules 163/433) Filed 07/16/14
JPMORGAN CHASE & CO FORM FWP (Free Writing Prospectus - Filing under Securities Act Rules 163/433) Filed 07/16/14 Address 270 PARK AVE 38TH FL NEW YORK, NY 10017 Telephone 2122706000 CIK 0000019617 Symbol
More informationShort Sale. Dr. Patrick Toche
Short Sale Dr. Patrick Toche References : Zvi Bodie, Alex Kane, Alan J. Marcus. Essentials of Investment. McGraw- Hill Irwin. Chapter 3 of the Bodie-Kane-Marcus textbook will be followed closely. Other
More informationBARUCH COLLEGE DEPARTMENT OF ECONOMICS & FINANCE Professor Chris Droussiotis LECTURE 2. Chapter 3 SECURITIES MARKETS
LECTURE 2 Chapter 3 SECURITIES MARKETS IPO Required Docs: Amendment to the certificate of incorporation Corporate Governance (Private are far less formal responsibility) Recruit Independent Board Members
More informationIntroduction to Investments FINAN 3050
Introduction to Investments FINAN 3050 : Introduction (Syllabus) Investments Background and Issues (Chapter 1) Financial Securities (Chapter 2) Syllabus General Information The course is going to be organized
More informationReview for Exam 1. Instructions: Please read carefully
Review for Exam 1 Instructions: Please read carefully The exam will have 20 multiple choice questions and 5 work problems. Questions in the multiple choice section will be either concept or calculation
More informationVirtual Stock Market Game Glossary
Virtual Stock Market Game Glossary American Stock Exchange-AMEX An open auction market similar to the NYSE where buyers and sellers compete in a centralized marketplace. The AMEX typically lists small
More informationUnderstanding Regulation U
Understanding Regulation U What every deal lawyer needs to know about the margin regulations November 17, 2011 Craig Unterberg David Aman Federal Margin Regulations Background Authorized under Section
More informationLecture 15: Final Topics on CAPM
Lecture 15: Final Topics on CAPM Final topics on estimating and using beta: the market risk premium putting it all together Final topics on CAPM: Examples of firm and market risk Shorting Stocks and other
More informationShort Selling Tutorial
Short Selling Tutorial http://www.investopedia.com/university/shortselling/ Thanks very much for downloading the printable version of this tutorial. As always, we welcome any feedback or suggestions. http://www.investopedia.com/investopedia/contact.asp
More informationLearn about exchange-traded funds. Investor education
Learn about exchange-traded funds Investor education Become a more knowledgeable exchange-traded funds investor In this education guide, you ll get answers to common questions about exchange-traded funds,
More informationSession IX: Lecturer: Dr. Jose Olmo. Module: Economics of Financial Markets. MSc. Financial Economics
Session IX: Stock Options: Properties, Mechanics and Valuation Lecturer: Dr. Jose Olmo Module: Economics of Financial Markets MSc. Financial Economics Department of Economics, City University, London Stock
More informationTrading Costs and Taxes!
Trading Costs and Taxes! Aswath Damodaran Aswath Damodaran! 1! The Components of Trading Costs! Brokerage Cost: This is the most explicit of the costs that any investor pays but it is usually the smallest
More informationHow Wall Street Works Nightly Business Report
Notes from the PBS video How Wall Street Works Nightly Business Report The New York Stock Exchange located on Wall Street in New York City, is traders can buy and sell stocks and bonds. Two major types
More informationChapter 2. Practice Problems. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Chapter 2 Practice Problems MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Assume that you borrow $2000 at 10% annual interest to finance a new
More informationMargin and Exposure 14878.0351 348939.487 34598.6325 66875.0449
14878.0351 348939.487 34598.6325 66875.0449 34838.0371 34898.5321 94898.6327 54798.0321 44898.0324 54695.3522 96898.0321 24848.6323 44898.0321 34898.0328 14878.0351 348939.487 34598.6325 66875.0449 34838.0371
More informationProducer Price Indexes for Stockbrokers, Dealers and Investment Banking Companies
Producer Price Indexes for Stockbrokers, Dealers and Investment Banking Companies Shelley Winston Producer Price Index Program U.S. Bureau of Labor Statistics Producer Price Index for Stockbrokers, Dealers
More informationNEW MARGIN REQUIREMENTS FOR DAY TRADING
CLIENT MEMORANDUM NEW MARGIN REQUIREMENTS FOR DAY TRADING The regulation of securities credit as it applies to day trading will change substantially in August and September of this year as a result of
More informationRisk Warning Notice. Introduction
First Equity Limited Salisbury House London Wall London EC2M 5QQ Tel 020 7374 2212 Fax 020 7374 2336 www.firstequity.ltd.uk Risk Warning Notice Introduction You should not invest in any investment product
More informationOften stock is split to lower the price per share so it is more accessible to investors. The stock split is not taxable.
Reading: Chapter 8 Chapter 8. Stock: Introduction 1. Rights of stockholders 2. Cash dividends 3. Stock dividends 4. The stock split 5. Stock repurchases and liquidations 6. Preferred stock 7. Analysis
More informationMastering the Markets
www.mastermindtraders.com Presents Mastering the Markets Your Path to Financial Freedom DISCLAIMER Neither MasterMind Traders or any of its personnel are registered broker-dealers or investment advisors.
More informationFREQUENTLY ASKED QUESTIONS ABOUT RIGHTS OFFERINGS
FREQUENTLY ASKED QUESTIONS ABOUT RIGHTS OFFERINGS Background What is a rights offering? A rights offering typically provides an issuer s existing shareholders the opportunity to purchase a pro rata portion
More informationNine Questions Every ETF Investor Should Ask Before Investing
Nine Questions Every ETF Investor Should Ask Before Investing UnderstandETFs.org Copyright 2012 by the Investment Company Institute. All rights reserved. ICI permits use of this publication in any way,
More informationReview for Exam 1. Instructions: Please read carefully
Review for Exam 1 Instructions: Please read carefully The exam will have 25 multiple choice questions and 5 work problems covering chapter 1, 2, 3, 4, 14, 16. Questions in the multiple choice section will
More informationA Guide for the Individual Investor TAXES & INVESTING
A Guide for the Individual Investor TAXES & INVESTING The Options Industry Council (OIC) is an industry cooperative created to educate the investing public and brokers about the benefits and risks of exchange-traded
More information1. Overconfidence {health care discussion at JD s} 2. Biased Judgments. 3. Herding. 4. Loss Aversion
In conditions of laissez-faire the avoidance of wide fluctuations in employment may, therefore, prove impossible without a far-reaching change in the psychology of investment markets such as there is no
More informationBUYING STOCKS ON MARGIN
BUYING STOCKS ON MARGIN The Basics BEFORE YOU INVEST, INVESTIGATE TM Securities Industry Association SIA thanks the Discount Brokerage and Investor Education Committees and the public relations executives
More informationHOW TO BUY A STOCK BY KELLY GREEN
HOW TO BUY A STOCK BY KELLY GREEN HOW TO BUY A STOCK WELCOME TO THE WORLD OF STOCK TRADING We understand that buying your first stock can be a daunting process. But if you break it down into smaller steps,
More informationContent Outline for Security Futures Training
10/27/08 Content Outline for Security Futures Training Instructions for NFA Members Current futures registrants may not offer or sell, or supervise persons who offer or sell, security futures until they
More informationLecture 19: Brokers, Dealers, Exchanges & ECNs. Economics 252, Spring 2008 Prof. Robert Shiller, Yale University
Lecture 19: Brokers, Dealers, Exchanges & ECNs Economics 252, Spring 2008 Prof. Robert Shiller, Yale University Brokers, Dealers Exchanges & ECNs Broker-Dealer (BD) is an organization as defined by SEC,
More informationHow CFD Trading Works?
What are CFD s In finance, a contract for difference (CFD) is a contract between two parties, typically described as "buyer" and "seller", stipulating that the seller will pay to the buyer the difference
More informationWhy Learn About Stocks?
Language of the Stock Market Family Economics & Financial Education 1.12.2.F1 Why Learn About Stocks? O ne hears about the stock market on a daily basis. Not necessarily because they want to, but because
More informationEMERGING INVESTMENT PRODUCTS AND THEIR REGULATORY CHALLENGES
2007 FAS ANNUAL CONFERENCE FAIRMONT CHATEAU MONTEBELLO SEPTEMBER 27 30, 2007 EMERGING INVESTMENT PRODUCTS AND THEIR REGULATORY CHALLENGES Louis Piergeti Vice President, Financial Compliance IDA 1 Emerging
More informationPart I: Investment Environment (continued)
Securities & Investments Analysis First few Weeks: Investment Environment Markets and Instruments Weeks 3 & 4: Issuing Securities Part I: Investment Environment (continued) Trading Securities (market microstructure
More informationChapter. 2 Buying and. Selling Securities. McGraw-Hill/Irwin. Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 2 Buying and Selling Securities McGraw-Hill/Irwin Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Buying and Selling Securities Don t Gamble! Take all your savings and buy
More informationPROFUNDS GROUP INVESTOR EDUCATION GUIDE 1 GEARED INVESTING. An introduction to leveraged and inverse funds
PROFUNDS GROUP INVESTOR EDUCATION GUIDE 1 GEARED INVESTING An introduction to leveraged and inverse funds GEARED FUNDS have generated a great deal of interest in recent years. Also known as LEVERAGED AND
More informationHomework Margin Purchases. Dr. Patrick Toche
Homework Margin Purchases Dr. Patrick Toche A dagger indicates a possibly more challenging question. Maintenance Margin 1. You are bullish on Telecom stock. The current market price is $50 per share, and
More informationIntroduction to Mathematical Finance
Introduction to Mathematical Finance Martin Baxter Barcelona 11 December 2007 1 Contents Financial markets and derivatives Basic derivative pricing and hedging Advanced derivatives 2 Banking Retail banking
More informationGeneral Forex Glossary
General Forex Glossary A ADR American Depository Receipt Arbitrage The simultaneous buying and selling of a security at two different prices in two different markets, with the aim of creating profits without
More informationHOW TO SELL A STOCK BY KELLY GREEN
HOW TO SELL A STOCK BY KELLY GREEN HOW TO SELL A STOCK In our first report, How to Buy a Stock, we took you step-by-step through selecting a broker and making your first trade. But we also pointed out
More informationHow to Trade Almost Any Asset in the World from a Single Account Using CFDs
How to Trade Almost Any Asset in the World from a Single Account Using CFDs How to Trade Almost Any Asset in the World from a Single Account Using CFDs Shae Russell, Editor INTRODUCTION TO TRADING CFDS
More informationOverlapping ETF: Pair trading between two gold stocks
MPRA Munich Personal RePEc Archive Overlapping ETF: Pair trading between two gold stocks Peter N Bell and Brian Lui and Alex Brekke University of Victoria 1. April 2012 Online at http://mpra.ub.uni-muenchen.de/39534/
More informationRedemption of Shares Class A Sales Charge Waivers beginning on page 37 of the Fund s Statement of Additional Information.
USA Mutuals Takeover Targets Fund Trading Symbols: Institutional Class Shares (TOTIX) Investor Class Shares (TOTNX) Class A Shares (TOTAX) Class C Shares (TOTCX) Summary Prospectus July 29, 2015 Before
More informationInvestments I HW 2 - Solutions
Investments I HW 2 - Solutions Sailesh Tiwari 26 September, 2008 Problem 1 (BKM Ch3. Ques.3) (a) The Trader buys 300 Internet Dreams shares at $40 per share. Total cost of the shares is 300 $40 = $12000.
More informationHow To Trade On An On Line Trading Platform
CFD Trading You can lose more than your initial investment when trading CFDs A ccendo Markets is a market leader in financial trading services*, providing awardwinning on-line and telephone broking services
More informationTMX TRADING SIMULATOR QUICK GUIDE. Reshaping Canada s Equities Trading Landscape
TMX TRADING SIMULATOR QUICK GUIDE Reshaping Canada s Equities Trading Landscape OCTOBER 2014 Markets Hours All market data in the simulator is delayed by 15 minutes (except in special situations as the
More informationCost of Capital and Project Valuation
Cost of Capital and Project Valuation 1 Background Firm organization There are four types: sole proprietorships partnerships limited liability companies corporations Each organizational form has different
More informationFinancial Markets and Institutions Abridged 10 th Edition
Financial Markets and Institutions Abridged 10 th Edition by Jeff Madura 1 23 Mutual Fund Operations Chapter Objectives provide a background on mutual funds describe the various types of stock and bond
More informationComparing E-minis and ETFs
STOCK INDEXES Comparing E-minis and ETFs SEPTEMBER 15, 2012 John W. Labuszewski Managing Director Research & Product Development 312-466-7469 jlab@cmegroup.com CME Group E-mini stock index futures and
More informationINVESTMENT DICTIONARY
INVESTMENT DICTIONARY Annual Report An annual report is a document that offers information about the company s activities and operations and contains financial details, cash flow statement, profit and
More informationA SIMPLE GUIDE TO CFDS (Contracts For Differences)
A SIMPLE GUIDE TO CFDS (Contracts For Differences) CONTENTS INTRODUCTION 3. INTRODUCTION 4. TERMINOLOGY 5. WHAT IS A CFD 6. ADVANTAGES 8. XTRATA LONG 11. XTRATA TRADE TABLE 12. VODAFONE SHORT 16. RISKS
More informationPureFunds ISE Big Data ETF (BDAT) PureFunds ISE Mobile Payments ETF (IPAY)
PureFunds ISE Big Data ETF (BDAT) PureFunds ISE Mobile Payments ETF (IPAY) Listed on: NYSE Arca PROSPECTUS July 15, 2015 Fund shares are not individually redeemable by the Funds but trade on the NYSE Arca
More informationLoan Disclosure Statement
ab Loan Disclosure Statement Risk Factors You Should Consider Before Using Margin or Other Loans Secured by Your Securities Accounts This brochure is only a summary of certain risk factors you should consider
More informationWhat is stock? What drives stock prices? To introduce what Stock Index CFD is, we d like to introduce to you what stock. trading is first.
To introduce what Stock Index CFD is, we d like to introduce to you what stock trading is first. What is stock? our private enterprise system. They spur job creation and economic growth while creating
More informationSHORT INTRODUCTION OF SHORT SELLING
Financial Assets and Investing SHORT INTRODUCTION OF SHORT SELLING Dagmar Linnertová Faculty of Economics and Administration, Masaryk University, Lipová 41a, 602 00 Brno, e-mail: Dagmar.Linnertova@mail.muni.cz
More informationPUTS AND CALLS FOR THE CONSERVATIVE INVESTOR Common Sense Strategies
PUTS AND CALLS FOR THE CONSERVATIVE INVESTOR Common Sense Strategies By Edward M. Wolpert Oconee Financial Planning Services www.oconeefps.com Conservative investors can enhance their earnings or reduce
More information