...The Importance of Investing The topic that I will focus on is the importance of investing. To begin investing is the act of laying out money to make a profit in the future. It is important to make your money grow than to let it shrink. There are several ways to invest your money today. Some ways include investing in stocks, bonds, mutual funds, annuities, and treasuries. The importance of investing is an interesting topic because it is essential for everyone to make money. Investing is beneficial in the present and is also extremely beneficial in the future. Investing is also important because investments must be made in order for people to establish a profitable life and future. Furthermore, everyone young and old will be able to benefit from reading this research paper. Since the economy is in such a terrible condition, many people are looking for different ways to invest and increase their incomes. However, I feel like younger and middle age people will benefit the most by learning how to invest earlier in their lifetime. Moreover, the primary data in the research paper will be obtained by a survey taken by young to older adults. I will focus primarily on people that would like to invest their money and also focus on types of ways that interest them about investing. This target market will help define how people will actually benefit from this research project. I will conduct these surveys at work, church, school, and various places around the...
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...Record: 1 Title: Investing is like dieting Authors: Trish Crawford Toronto Startcrawford@thestar.ca Source: Toronto Star (Canada), 10/09/2010; ISSN: 0319-0781 Accession Number: 6FP2287240844 Persistent link to this record (Permalink): http://proxy.devry.edu/login?url= Cut and Paste: <A href="http://proxy.devry.edu/login?url=">Investing is like dieting</A> Database: Newspaper Source Plus Investing is like dieting Financial expert and author gives women the tools to help them save and invest their money Section: Zoned Living, pg. L15 If you've ever been on a diet, then you know how to save money, says author Susan Hirshman. The former investment manager with global financial management firm J.P. Morgan in New York, has written a book Does this Make My Assets Look Fat? (St. Martin's Press) geared toward women. Using the analogy of going on a diet, the CPA divides investments into four basic "food groups,"stocks, cash, bonds and alternative investments. Diet tricks, from counting calories to having a buddy, can be easily transferred to money management, she says. Her motto is, "A man is not a financial plan; the only person responsible for you is you." Do women lack money management skills? It's not just a problem with women but both women and men. The issue is, where are we supposed to learn this? No one teaches us this in school. What happens when we don't have this knowledge? We fall into four types. The Princess is the person who...
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...THE ACCIDENTAL INVESTMENT BANKER This page intentionally left blank THE ACCIDENTAL INVESTMENT BANKER · Inside the Decade That Transformed Wall Street · JONATHAN A. KNEE 1 2006 1 Oxford University Press, Inc., publishes works that further Oxford University’s objective of excellence in research, scholarship, and education. Oxford New York Auckland Cape Town Dar es Salaam Hong Kong Karachi Kuala Lumpur Madrid Melbourne Mexico City Nairobi New Delhi Shanghai Taipei Toronto With offices in Argentina Austria Brazil Chile Czech Republic France Greece Guatemala Hungary Italy Japan Poland Portugal Singapore South Korea Switzerland Thailand Turkey Ukraine Vietnam Copyright © 2006 by Jonathan A. Knee Published by Oxford University Press, Inc. 198 Madison Avenue, New York, NY 10016 www.oup.com Oxford is a registered trademark of Oxford University Press All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Oxford University Press. Library of Congress Cataloging-in-Publication Data is available ISBN-13: 978-0-19-530792-4 ISBN-10: 0-19-530792-5 1 3 5 7 9 8 6 4 2 Printed in the United States of America on acid-free paper For Chaille Bianca and Vivienne Lael and William Grant who says he wants to be an investment banker ACKNOWLEDGEMENTS As a f i r s t - t i m e au t h o r ...
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...Yahoo, Warren Buffett and $1 Billion Contest Eric J. McGlashing Feb 10, 2014 TOPICS: Insurance, Risk and uncertainty SUMMARY: A lawsuit involving Yahoo sheds light on the insurance policies that enable contest prizes like the $1 billion Warren Buffett is offering to anybody who predicts the winner of every March Madness basketball game. CLASSROOM APPLICATION: Students can struggle with framing the problem of the uncertainty involved in calculating expected payment and the risk involved in offering a prize for correctly picking the NCAA basket tournament bracket winners. Students can work on a simplified problem of a four-team tournament (as opposed to a 64-plus team tournament) and a small number of fans choosing the winners. Students should be forced to think about the distributions of the fans' probabilistic beliefs about the game winners. QUESTIONS: 1. (Advanced) Suppose in a tournament game between teams i and j that team i is expected to beat team j with probability p. What is the value of p for each of the tournament's games that make it least likely that a gambler can correctly pick of the tournament's winners? 2. (Introductory) Suppose in round 1 of the tournament that one and only one lower-seeded team is going to win a game. What is the probability that a gambler will correctly pick the one team? 3. (Advanced) What is the probability that any one fan will correctly pick all bracket winners? What is the probability that at least one of four fans...
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...POLAND The cliched western view of Poland – bogged down by communist inefficiency and rusting tractors – is long gone. This was the only EU economy ( It joined EU in 2004) to avoid contraction in the dark days of 2009, leading the prime minister to describe Polish economic growth (albeit at a modest 1.6%) as a "green island" amid the red sea of recession elsewhere in the union. There has been massive public investment due to the European football championship (UEFA Euro 2012) that Poland co-hosted. And the weakening Złoty., which suffered when traders became increasingly nervous about the worsening debt situation in Greece and other eurozone members, has helped to keep exports ticking over. “The biggest threat to the security and prosperity of Poland would be the collapse of the eurozone” - Radek Sikorski, Poland's foreign minister. Krzysztof Rybinski, a Polish government critic has said that 2011 was the last good year for the Polish economy and that things will go downhill from the second half of 2012, for want of decent reforms in the face of an economic slowdown, an ageing population and a looming energy crisis. As a party to 89 Double Taxation Treaties throughout the world, Poland is indeed open for international business. Offering a large domestic market coupled with political and economic stability and various government incentives for investors, Poland is placed by the United Nations Conference on Trade and Development (UNCTAD) among the top countries to attract...
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...Financing and Investing By: Marissa Woodring Introduction to Accounting Professor Genet August 12, 2009 Abstract I will be explaining what is important for each company to know about our financial statements here at Target. This way, my supervisor knows what to prepare for in an upcoming meeting with two companies that are willing to invest and finance with the Target Corporation. Financing and Investing Two companies are looking into working with the Target Corporation. One company is looking to invest and take part ownership over the company. The other company is willing to give out a loan for Target to expand its operations. My supervisor will soon be meeting with these companies separately and needs to know what he will need to convince the companies to make the right decision. I have looked over our financial documents and highlighted the important information needed for my supervisor in his upcoming meetings. Company #1 This company is willing to take part ownership and invest in our Corporation. The first thing the company is going to want to know is where our cash is coming from. For this, we are going to look at our statement of cash flow. If we have operating activities it is a good sign for these companies, investing activities are a bad sign, and financing activities are an okay sign. Next, they will want to know if our high sales and profits are translating into more cash. We will also look at the statement of cash flow to figure this out. The...
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...Saving or Investing How do you decide where to put your money? People are well aware that they need to save money. That being said saving in itself is not really going to help you; you have to do something with the money. That means that you will need to invest your money. A lot of people are afraid to do this but there is really no reason to be afraid if you know what you are doing. What are the differences between saving and investing? Your "savings" are usually put into the safest places or products that allow you access to your money at any time. Examples include savings accounts, checking accounts, and certificates of deposit. When you "invest," you have a greater chance of losing your money than when you "save." But when you invest, you also have the opportunity to earn more money than when you save. Investing is, well, everything else. Instead of putting your cash in a savings account, when you invest you are generally putting your money into company shares, government or corporate bonds or property – either directly or through a fund. This involves accepting the risk you may get back less than you put in, which is why the rewards – when they do come – are higher. Done well, investing should protect your money against the effects of inflation and give you a stronger return, compounded over time. Of course investment and saving are not separate things; in order to have money to invest you will need to save it. The important point is that you are better off investing...
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...In the United States, a society plagued by capitalism, investing has become a way of life. To most Americans it begins with opening a savings account and slowly allowing that money to grow through the compounded interest rate over the years. While it may not seem like a big step in generating more income, nonetheless, this is a positive movement in the market of investments. With the many types of investments available knowing which are reliable, or safe, or yield good returns, are just some of the questions on the investors mind. Within each asset class there are investments to suit different kinds of risk, duration, returns and liquidity. Bank savings account, as stated before, is the simplest kind of short-term investment. The returns on savings account are low when compared to other investments, but the returns are guaranteed by the supplier, in this case the bank. Banks offer security meaning if a bank was to go broke the federal government through the FDIC (Federal Deposit Insurance Corporation) insures your bank deposits of up to $100,000. Having guaranteed returns means an investment will not lose its value in the short term unlike other investments. The bank pays interest to you account for saving your money with them. Bank fixed term investment also known as certificate of deposit is when you deposit a sum amount of money for a set period usually three, six or twelve months. The money becomes locked away for the fixed term but, in return, you get a higher interest...
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...potato chips, Gatorade sports drinks, Quaker Oats, Tropicana, and many more for a total of twenty-two well known brands across the world. Pepsico is part of an oligopoly market, which means it’s “an industry that contains two or more firms, at least one of which produces a significant portion of the industry’s total output” (Ragan, 2013). Company’s that are in an oligopoly competition market can use either high-price or low-price strategy to maximize their revenue and profits. Because Pepsico is in an oligopoly market, their products are substitutes for other company’s products, therefore their products have a high and positive cross elasticity of demand. Price elasticity of demand is another component you must understand when considering investing in Pepsico. Price elasticity “is the measure of responsiveness of the quantity of a product demanded to a change in that product’s price” (Ragan, 2013). In order to properly identify whether a...
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...Abstract This paper will explain investing in products and services within my own organization and how they produce returns so that stockholders, stakeholders, and others are interested in the organization. In the most recent economic downward spiral many have turned to areas of opportunity to invest back in themselves via education in hopes when the economy turns around they are the cream of the crop and ready for the new employment opportunities. Online education providers are in need of the same mind set to which they must find ways to invest in the student via products or services. These types of investments in my current organization of education is label as student success; not only driving profit by accepting the student in class but over time providing services that will prompt the overall success of the student until graduation. “Most Americans, I believe, would define student success as the ability of a student to support themselves in society after completing the educational process. Our value and belief systems are strongly based on economics and accumulation of material wealth. How often do you hear parents say, “I don’t want my children to have to come home to live with me after completing their education” (Edutopia, 2012)? Online education is simply online education unless the provider is doing something different to give the student a better experience than the market of profit schools. Currently my university has not only grown with more ground campus but...
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...Investing in Ford MGT/521 August 18, 2011 Abstract Choosing the right company to invest, where our money is not only safe, but also multiplies, is one of the toughest challenges for an investor. The potential benefits should outweigh the risks involved. The following is an attempt to put the pros and cons in perspective on why “Ford” is a good choice for a discerning investor. Investing in Ford Ford is an American multinational auto company head quartered in Dearborn, Michigan, that was founded in 1903. Fortune favors the brave. Fortune 500 has placed Ford in the tenth position in the list of the largest American corporations (CNN Money, 2011). A net income of $383 million was reported in the second quarter of 2011, with a pre-tax income of $604 million. (Ford Media, July). But the numbers themselves do not mean much unless there is a comparison with the size of the company. To understand the progress made by Ford, we need to examine the stock price – Today, Ford closed at $11.11 (Yahoo! Finance, August). This figure may not look competitive, when seen in isolation. But when compared to how things were four years back, the progress in phenomenal. In 2008, the shares were as low as $1.01. When placed in this perspective, this is a giant leap for this automobile empire. These statistics show that there has been significant revamping done. In 2010, the company posted its highest net income in more than ten years, the full year net income being $6.6 billion, or $1...
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...1. Define investing and speculating. The main difference between speculating and investing is the amount of risk undertaken in the trade. Typically, high-risk trades that are almost akin to gambling fall under the umbrella of speculation, whereas lower-risk investments based on fundamentals and analysis fall into the category of investing. Investors seek to generate a satisfactory return on their capital by taking on an average or below-average amount of risk. On the other hand, speculators are seeking to make abnormally high returns from bets that can go one way or the other. It should be noted that speculation is not exactly like gambling because speculators do try to make an educated decision on the direction of the trade, but the risk inherent in the trade tends to be significantly above average. As an example of a speculative trade, consider a volatile junior gold mining company that has an equal chance over the near term of skyrocketing from a new gold mine discovery or going bankrupt. With no news from the company, investors would tend to shy away from such a risky trade, but some speculators may believe that the junior gold mining company is going to strike gold and may buy its stock on a hunch. This would be speculation. As an example of investing, consider a large stable multinational company. The company may pay a consistent dividend that increases annually, and its business risk is low. An investor may choose to invest in this company over the long-term to make a...
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...Mantra for 2012: Keep it simple About how investments will do in 2012, frankly, I don’t think it’s possible to make a prediction with any degree of precision. To anyone who is a knowledgeable and aware, and that would definitely include readers of this newspaper, the business and investment landscape would be familiar. Indian equities are looking decidedly downtrodden, but that’s not to say that they can’t be trodden upon even more. Declining corporate profits, worsening government finances, high interest rates and the constant overhang of further drama in Europe could well make things even more difficult. Indeed, the mood d’jour among the investment and business community is one of extraordinary pessimism. However, it’s entirely possible—I would say even probable—that this pessimism has now moved from being a rational response to real problems to being a sort of an irrational melancholy—the opposite of Alan Greenspan’s much maligned irrational exuberance. One can only hope that this pessimism does not become self-fulfilling prophecy, which can easily happen. Among business decision makers as well investors, a widespread expectation of bad news will itself become the cause of bad news. My guess is that sooner rather than later—certainly, long before 2012 ends—there will be a change of perspective. Investors will start paying more attention to reasonably-priced investments. At this juncture, one should step back and take in India’s economic history in large, ten-year swathes...
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...Stock Price Sensitivity to Dividend Changes ∗ Cesare Fracassi Department of Finance - UCLA Anderson School of Management Email Address: cesare.fracassi.2009@anderson.ucla.edu First Draft April 4th , 2007 Current Draft: July 29, 2008 Abstract This paper examines the stock price sensitivity to dividend changes. The Dividend Signaling, the Free-Cash-Flow, the Maturity and the Catering Hypotheses all predict an average positive (negative) reaction to announcement of a dividend increase (decrease). However, these hypotheses have different cross-sectional predictions. This paper documents that the positive stock price response to dividend increases is due primarily to the signaling of higher future earnings, to the managers catering to the time-varying premium assigned by the market to dividend paying stocks, and partially to the reduction of agency problems. On the contrary, the negative price response to dividend decreases is mainly due to the transition from a mature life-cycle stage to a decline stage with higher systematic risk, as maintained by the Maturity Hypothesis. Keywords: Dividend; Signaling; Overinvestment; Life-Cycle. JEL Classification Numbers: G14, G35. ∗ I would like to thank Albert Sheen for his constant support and excellent insights. I would also like to thank Antonio Bernardo, my mentor over the years, and Mark Garmaise and Walter Torous for their helpful comments. All errors are mine. 1 1 Introduction The impact of...
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...Investing in a Company Anthony Romero MGT 521/Management April 16, 2012 Gary Maxa Investing in a Company DirecTV is the leader of providing digital television entertainment services in the United States. The satellite provided service is also available through its subsidiaries in other parts of the world, such as Brazil, Mexico, and Latin American countries. There are 19.88 million DirecTV customers in the United States and about 11.88 million customers in Latin America. DirecTV has been a successful company reporting revenues of $7.46 billion during the fourth quarter of 2011. Being the top provider of television service, DirecTV possesses a large amount of strengths, but there are also a few elements impacting DirecTV’s competiveness (Directv.com, 2012). Strengths DirecTV gets its television signal via satellite. This allows them to expand their service to out of range markets that other television providers cannot reach. According to DirecTV, its company has 28 million customers in Americas. Additionally, it is the largest supplier in the United States of DTH digital television service and the second largest supplier of multi-channel video programming distribution (MVOD) industry. In 2010, the company did a study that determined 95% of television users in the United States were familiar with the DirecTV brand name. This gives the company a big advantage when attracting new customers. Furthermore, it interests...
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