...Markets have been around for a really long time. No not the markets your parents go to so they can get groceries this kind of market is where the supply and demand of items are measured called the stock market. The stock market crashed on September 29, 2008. The Dow Jones Industrial Average fell 777.68 points in intraday trading. That was the largest point drop in any single day in history. It plummeted because Congress rejected the bank bailout bill. A stock market crash is a rapid and often unexpected drop is stock rates. When the stock market crashes it causes the world to worry especially when the stock market crashes in a major time period such as a war. the supply of the product is rapidly decreasing while the demand stays the same or...
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...THE JOURNAL OF FINANCE • VOL. LVI, NO. 6 • DEC. 2001 The Stock Market Valuation of Research and Development Expenditures LOUIS K. C. CHAN, JOSEF LAKONISHOK, and THEODORE SOUGIANNIS* ABSTRACT We examine whether stock prices fully value firms’ intangible assets, specifically research and development ~R&D!. Under current U.S. accounting standards, financial statements do not report intangible assets and R&D spending is expensed. Nonetheless, the average historical stock returns of firms doing R&D matches the returns of firms without R&D. However, the market is apparently too pessimistic about beaten-down R&D-intensive technology stocks’ prospects. Companies with high R&D to equity market value ~which tend to have poor past returns! earn large excess returns. A similar relation exists between advertising and stock returns. R&D intensity is positively associated with return volatility. THE MARKET VALUE OF A F IRM’S SHARES ultimately ref lects the value of all its net assets. When most of the assets are physical, such as plant and equipment, the link between asset values and stock prices is relatively apparent. In modern economies, however, a large part of a firm’s value may ref lect its intangible assets, such as brand names. Under generally accepted U.S. accounting principles, many types of intangible assets are not reported in firms’ financial statements. When a firm has large amounts of such intangibles, the lack of accounting information generally complicates the task of...
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...Finance 金融, 2012, 2, 151-154 http://dx.doi.org/10.12677/fin.2012.23017 Published Online July 2012 (http://www.hanspub.org/journal/fin) The Empirical Research on the Effect of Investor Sentiment for the Stock Market of China Based on Stock Index Futures Yongquan Pan, Zi Lin Dongling School of Economics and Management, University of Science and Technology Beijing, Beijing Email: yqpan@ustb.edu.cn, linziliz@sina.com Received: Feb. 6th, 2012; revised: Feb. 26th, 2012; accepted: Mar. 4th, 2012 Abstract: This paper discusses the affect of stock index futures for investor sentiment’s measure and study if the new indicator has better interpretation to stock returns than before. Finally, the reflection of the negative emotions on the market is studied by this indicator. Keywords: Investor Sentiment; Stock Index Futures; Stock Return 基于股指期货的投资者情绪对中国股市 影响的实证研究 潘永泉，林 梓 北京科技大学，东凌经济管理学院金融工程系，北京 Email: yqpan@ustb.edu.cn, linziliz@sina.com 收稿日期：2012 年 2 月 6 日；修回日期：2012 年 2 月 26 日；录用日期：2012 年 3 月 4 日 摘 要：本文将股指期货合约作为投资者情绪的度量指标，研究在此基础上构建的投资者情绪指标是 否对于股票收益率有更强的解释能力，并以此研究其对股票市场的消极情绪是否反映的更为充分。 关键词：投资者情绪；股指期货；股票收益率 1. 引言 在之前的研究中，由于我国实际上没有做空机 投资者非理性行为是否会影响股票价格和收益 制，所以在测度投资者情绪时经常采用市场换手率、 是现代金融理论和行为金融理论争论的焦点。现代金 封闭式基金折价和投资者开户增长率等指标，但是， 融理论认为，在某种程度上某些投资者可能并非理 自从 2010 年以来，股指期货市场出现，投资者可以 性，但由于他们之间的交易是随机进行的，所以他们 利用股指期货来做空股票，因此之前的测度中，市场 的非理性会相互抵消， 股票价格不会受到影响。 因此， 的消极情绪反映的不够充分， 但是， 有了做空机制后， 股票的价格等于其基础价值，股票的预期收益由其基 市场的消极情绪得以反映。 ...
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...An research of the seasonalities in the Pakistan’s Stock Market: Monday, January and the Ramadan Effect . Hanan Abdul Razaq 10th March 2009 Acknowledgements I am indebted to my dissertation lecturer for his help and guidance throughout the project. I would also like to thank my family and friends for their unconditional support and understanding throughout the year specially during the crucial times when my head Was down but they gave me that extra strength and support to push forward and Complete this project on time. Abstract In recent years, we have observed an increase in interest from both individuals’ institutions and investors in emerging markets. It’s important for the investors to know whether the market is efficient, inefficient or neutral. This study wishes to document the Pakistani market and their Stock Exchange by looking at the existence of Calendar Anomalies such Monday effect and the January effect. Secondly this study investigates the presence of the so-called Moving Calendar anomaly, the “Ramadan Effect”. The following three indices are used: KSE-100, LSE-25 and ISE-10. An OLS regression and a GARCH (1,1) methodology will be used for the testing daily, weekly and monthly returns. The findings of this study shows the existence of Monday effect in ISE-10 index using...
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...SAMPLE COPY RESEARCH PROPOSAL PROPOSED RESEARCH TITLE: AN INVESTIGATION INTO THE DOWNWARD TREND IN GLOBAL STOCK MARKETS: A CASE STUDY OF THE NIGERIAN STOCK MARKET RESEARCH BRIEF The history of stock trading and trading associations can be traced as far back as the 11th century when Jewish and Muslim merchants set up trade associations. After centuries of evolution, stock markets have become the symbol of commerce in the modern world. It operates in various countries and trades a range of securities. The world stock market capitalisation is estimated to be about $ 36.6 Trillion. The stock market has various functions such as capital mobilisation, investing opportunities, risk distribution etc. The major stock exchanges in the world today include New York Stock Exchange, London Stock Exchange, Frankfurt Stock Exchange, Italian Stock Exchange, Hong Kong Stock Exchange and Tokyo Stock Exchange. There have been various stock market crashes in the past such as the Wall Street crash of 1929, the crash of 1973/74, the 1987 crash; called black Monday, the dotcom bubble of 2000 and the more recent crash in 2008 caused by the subprime mortgage crisis in America. The economic crisis of 2008 which originated in America spread to various economies in the world and their stock markets were affected. It reduced the value of stocks around the world by as much as 41% and affected both major and emerging stock markets. The Nigerian stock market is an emerging market in Africa. After...
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...SAMPLE COPY RESEARCH PROPOSAL PROPOSED RESEARCH TITLE: AN INVESTIGATION INTO THE DOWNWARD TREND IN GLOBAL STOCK MARKETS: A CASE STUDY OF THE NIGERIAN STOCK MARKET RESEARCH BRIEF The history of stock trading and trading associations can be traced as far back as the 11th century when Jewish and Muslim merchants set up trade associations. After centuries of evolution, stock markets have become the symbol of commerce in the modern world. It operates in various countries and trades a range of securities. The world stock market capitalisation is estimated to be about $ 36.6 Trillion. The stock market has various functions such as capital mobilisation, investing opportunities, risk distribution etc. The major stock exchanges in the world today include New York Stock Exchange, London Stock Exchange, Frankfurt Stock Exchange, Italian Stock Exchange, Hong Kong Stock Exchange and Tokyo Stock Exchange. There have been various stock market crashes in the past such as the Wall Street crash of 1929, the crash of 1973/74, the 1987 crash; called black Monday, the dotcom bubble of 2000 and the more recent crash in 2008 caused by the subprime mortgage crisis in America. The economic crisis of 2008 which originated in America spread to various economies in the world and their stock markets were affected. It reduced the value of stocks around the world by as much as 41% and affected both major and emerging stock markets. The Nigerian stock market is an emerging market in Africa. After attaining...
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...RESEARCH SYNOPSIS/PROPOSAL Relation between the stock market and GDP Submitted by: Abstract: This research will analyze the stock market earnings impact on the GDP growth of a developing country i.e. Pakistan. This study will help to establish a relationship between stock market earnings and economic (GDP) growth of the country, basically it will answer this question, “How the stock market earnings affect the GDP?” In this research, I shall apply the co integration and error correction model to the stock market performance and GDP and shall try to segregate the role of primary from secondary market and find out linkages between secondary market and growth that may impact on GDP of Pakistan. I shall make an effort to find indicators that lead to growth by having stock market earnings at the back. Table of Contents with List of Tables and/or Illustrations Serial number|Description|Page numbers| 1|Title|i| 2|Abstract|ii| 3|Table of contents|1| 4|Introduction|2| 5|Research Question|3| 6|Research Objective|3| 7|Literature Review|4| 8|Significance|5| 9|Research Methodology|6| 10|Data Collection Sources|6| 11|Data Collection Tools|6| 12|Hypothesis|6| 13|Research Model|7| 14|Theoretical Framework|7| 15|Type of research|8| 16|Sampling technique|8| 17|Data processing, analysis and statistical tools|8| 18|Reference|9| Theoretical framework Illustration…………………………………….7 Introduction: GDP is the key indicator of the economic growth of a developing country...
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...SAMPLE COPY RESEARCH PROPOSAL PROPOSED RESEARCH TITLE: AN INVESTIGATION INTO THE DOWNWARD TREND IN GLOBAL STOCK MARKETS: A CASE STUDY OF THE NIGERIAN STOCK MARKET RESEARCH BRIEF The history of stock trading and trading associations can be traced as far back as the 11th century when Jewish and Muslim merchants set up trade associations. After centuries of evolution, stock markets have become the symbol of commerce in the modern world. It operates in various countries and trades a range of securities. The world stock market capitalisation is estimated to be about $ 36.6 Trillion. The stock market has various functions such as capital mobilisation, investing opportunities, risk distribution etc. The major stock exchanges in the world today include New York Stock Exchange, London Stock Exchange, Frankfurt Stock Exchange, Italian Stock Exchange, Hong Kong Stock Exchange and Tokyo Stock Exchange. There have been various stock market crashes in the past such as the Wall Street crash of 1929, the crash of 1973/74, the 1987 crash; called black Monday, the dotcom bubble of 2000 and the more recent crash in 2008 caused by the subprime mortgage crisis in America. The economic crisis of 2008 which originated in America spread to various economies in the world and their stock markets were affected. It reduced the value of stocks around the world by as much as 41% and affected both major and emerging stock markets. The Nigerian stock market is an emerging market in Africa. After...
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...THE RELATIONSHIP BETWEEN STOCK MARKET AND ECONOMIC GROWTH IN ASEAN COUNTRIES BY KOH YONG HONG CHOONG PIK SIN LEE SOCK MEI NG HON MENG LEONG MUN HONG A research project submitted in partial fulfillment of the requirement for the degree of BACHELOR OF BUSINESS ADMINISTRATION (HONS) BANKING AND FINANCE UNIVERSITI TUNKU ABDUL RAHMAN FACULTY OF BUSINESS AND FINANCE DEPARTMENT OF FINANCE MARCH 2016 Copyright @ 2016 ALL RIGHTS RESERVED. No part of this paper may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, graphic, electronic, mechanical, photocopying, recording, scanning, or otherwise, without the prior consent of the authors. DECLARATION We hereby declare that: (1) This undergraduate research project is the end result of our own work and that due acknowledgement has been given in the references to ALL sources of information be they printed, electronic, or personal. (2) No portion of this research project has been submitted in support of any application for any other degree or qualification of this or any other university, or other institutes of learning. (3) Equal contribution has been made by each group member in completing the research project. (4) The word count of this research report is 10,786 words. Name of Student: Student ID: Signature: 1. KOH YONG HONG 11ABB02521 2. CHOONG PIK...
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...1 STOCK & EQUITY MARKET GLOBAL INSTITUTE OF MANAGEMENT | 1 INTRODUCTION ABOUT STOCK AND EQUITY MARKET GLOBAL INSTITUTE OF MANAGEMENT | 2 1.1 What is Stock ? In finance, a stock represents a share in the ownership of an incorporated company. In Industrial societies wealth used in production is owned in the aggregate mostly by Corporations rather than by individuals because of the huge investments required. This trend began in 17th-century England when merchants formed JOINT-STOCK COMAPNIES, pooling capital to be used jointly in trading and manufacturing. Participants then received dividends, shares of the common PROFIT proportionate to their original investments. The Definition of a Stock : Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing. The wealth of individuals includes claims against, or investments in, corporations. These are called securities, the two most common being bonds and stocks. Corporate bonds are evidences of corporate debt to the bondholder. Stocks are evidences of ownership, or equity. GLOBAL INSTITUTE OF MANAGEMENT | 3 Investors buy stock in the hope that it will yield income from dividends and appreciate, or grow, in value. 1.2 History of Stock Market Indian Stock Markets are...
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...How does it add value to investors? What are the Pros and Cons of Passive Approach? 1. The DFA Company is a type of broker investment company that invest in Small stock. This focus is on a small niche that fits within the realms of the company. This provide limitations to the company about the type of stock they will invest in. However it provides an academic understanding as to which stock the company should select based on the formulations. The company’s growth and profit continued to grow with their academic approaches. The company’s management never set the goal to maximize assets. DFA based their approach on academic research and skilled traders. This create a essential formula for the company to create a list of possible investments that fit within the company’s ideal portfolio. DFA used a strategy to decrease the costs between the client and DFA as well as create value. DFA additionally used a value proposition of DFA by using the academic research to create specialized portfolios focusing on the small cap companies (small cap = 300 mil- 2 bill range). This investment approach focused on the Fama and French model. Their research demonstrated the small cap companies tended to outperform the large cap companies. DFA also added trading capabilities to increase variety among the competitive market while decreasing transaction costs. Passive Approach - Pros the company created low operating expenses, no initial decision making from managers or the investors. Relied...
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...Study the Role of Hedging to Reduce Exchange Risks on Investments in Global Stock Market Executive Summary In this global business environment, organizations are engaged to perform business activities across the countries. In order to execute international activities, they are tended to receive and make payment in different currencies. Currency value of country tends to change due to several economic aspects such as government decisions, stability, GDP and BOP rate etc. Changes in such factors are tended to increase vulnerability of currency value that is responsible for creating exchange risk. Exchange of currencies among the business organizations and corresponding changes in their values creates variation in their positions of cash flow, balance sheet and future profitability. An adverse effect of firm’s profitability leads significant decrement in the value and performance of respective stock. Due to this, exchange risk is needed to be addressed with use of risk management strategy. The research is designed to Study the role of hedging to reduce exchange risks on investments in global stock market. Research objective will contribute to determine hedging strategy role in reducing exchange risk from stock market investment. By using inductive approach, interpretive philosophy, mixed design and non-probability sampling method, objectives of this research will be achieved by the researcher. Both primary and secondary data sources will be used to obtain information. An...
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...the philosophy of DFA. What sort of market behavior are they counting on? * DFA believes in three principles: 1. The Efficient Market Theory. That is, the stock market is efficient and no one has the ability to consistently pick stocks that will beat the market. Over any given period, some lucky investors will outperform the market while others will underperform. DFA felt that the market price of any firm’s stock incorporated all public information and therefore did not do any fundamental analysis on the firm in question. 2. The value of sound academic research. For example, DFA’s founders believed that small-stock investing could yield high returns to investors. They formulated this belief on the Ph.D. dissertation research of Rolf Banz of the University of Chicago, which showed that small stocks had consistently outperformed large stocks between 1926 and the late 1970s. 3. The ability of skilled traders to contribute to a fund’s profits even when the investment is inherently passive. DFA’s investment fund had a semi-active strategy between those of actively managed funds and those of pure index funds. * DFA counts on market behavior that reflects the following concepts: 1. The Beta is Dead. Stocks with high-beta do not have consistently higher returns than low-beta stocks. That is, greater risk does not guarantee greater reward. 2. The Size Effect (Small Minus Big). Based on the research that small stocks historically outperform large ones, DFA...
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...Testing the weak form efficiency of Islamabad Stock exchange (ISE) Syed Tauseef Raza Gilani Department of Management Sciences, The Islamia University of Bahawalpur, Pakistan Email: tosif399@gmail.com, Tel: +00923006327270 Abstract The characteristics of stock prices reflect the all available information in market. This study explored the weak form efficiency of Islamabad Stock Exchange (ISE). In this research paper, we have also revealed the behavior of prices traded in Islamabad Stock Exchange, and how it behaves in different unusual events. Stock markets are the major contributor to economy. To test the weak form efficiency of Islamabad Stock exchange, we have tested Efficient Market Hypothesis. EMH is method to measure the stock prices trends in the market. Efficient market hypothesis also helps for making the right investment decisions. From two of decades, EMH has obtained much great importance in the field of finance. So it has attracted many researchers to explore the anomalous behavior of efficient stock market. Efficient market hypothesis has three main categories: 1. Weak form 2. Semi-strong form 3. Strong form. We will focus only weak form of market efficiency in ISE. Focus of the study is to analyze the weak form of ISE-10 in the stock market. For this purpose we have used different statistical technique for analyzing the data that is collected from the official website of ISE. Data will be in the form of weekly ISE-10 share index. Time period of data is From...
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..., named “Past and Present of Capital Market” it has been mentioned that the Indian stock markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only few brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States to Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as “The Stock Exchange“). Trading was at that time limited to a dozen brokers. These stock brokers organized an informal association...
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