2.2.2 How the bubble engorged
The booming market formed a strong belief that there existed a strong new economy which was untouched by instabilities and crisis so that analysis of financial data was irrelevant. “Dot-com” business were flooded, many of which were start-ups by new grads and inexperienced entrepreneurs, who did not have a clear vision, strategy, knowledge, earnings or financial planning. A clear indication of the bubble was NASDAQ index, which had skyrocketed from 600 points in 1995 to 5048 points in 2000.
2.2.3 How the bubble exploded
The ruling on the antitrust case against Microsoft, which was declared a supremacy in early April, 2000 is considered as the point where the bubble bust started. Consequently, the NASDAQ lost …show more content…
Their activities can assist in the effectual distribution of assets, increased market liquidity, enriched market confidence and helping shape the corporate information environment. A skilful financial analyst will be an incredible asset to any organization or individual. Below listed are a few characteristics we can expect from an efficient financial analyst who can help making better financial decisions: [5]
• Should necessitate proactive curiosity in the specialist market where the employer operates. This will likely aid to realise how the industry operates, the competitors and the impacts, and the long run opportunities.
• Should be aware of the various regulations – internal as well as government – under which the organization operates.
• Should have commercial awareness and the ability to spot areas where new revenue streams or higher margins perhaps achieved. It is natural that financial analysts usually pay attention to domains where their employer specializes in. It will be an added advantage if they intently watch what is happening in other industries which may have a direct or indirect impact on the economic …show more content…
This type of analysis is critical for IPOs or mergers and acquisitions. An expert Analyst could weigh current financial conditions as well as rely heavily on modeling and forecasting to make recommendations to senior partners as to whether or not a certain merger is appropriate for that investment bank 's client or whether another client of the investment bank should invest venture capital in a particular company.
3.2.4 Financial Analyst for Individual/Public
During the dot-com bubble, individuals or group of people (both we can refer to as public) have jumped into the market hastily. The initial luck stimulated the public to invest as much as they can so that to earn the most. All these happened without any expert judgment. And, when the bubble burst, almost all of them have lost their money.
Having a financial analyst (sometimes called a financial advisor) involved in the investment decision-making process could have made a different outcome. The financial analyst could keep his fingers on the beat of the market and track the efficiency of a variety of investments. He could have given input on where a client should place his money based on the client 's goals, needs and distinctive circumstances. This expertise could have helped many from losing their valuable money from mistaken investment
The booming market formed a strong belief that there existed a strong new economy which was untouched by instabilities and crisis so that analysis of financial data was irrelevant. “Dot-com” business were flooded, many of which were start-ups by new grads and inexperienced entrepreneurs, who did not have a clear vision, strategy, knowledge, earnings or financial planning. A clear indication of the bubble was NASDAQ index, which had skyrocketed from 600 points in 1995 to 5048 points in 2000.
2.2.3 How the bubble exploded
The ruling on the antitrust case against Microsoft, which was declared a supremacy in early April, 2000 is considered as the point where the bubble bust started. Consequently, the NASDAQ lost …show more content…
Their activities can assist in the effectual distribution of assets, increased market liquidity, enriched market confidence and helping shape the corporate information environment. A skilful financial analyst will be an incredible asset to any organization or individual. Below listed are a few characteristics we can expect from an efficient financial analyst who can help making better financial decisions: [5]
• Should necessitate proactive curiosity in the specialist market where the employer operates. This will likely aid to realise how the industry operates, the competitors and the impacts, and the long run opportunities.
• Should be aware of the various regulations – internal as well as government – under which the organization operates.
• Should have commercial awareness and the ability to spot areas where new revenue streams or higher margins perhaps achieved. It is natural that financial analysts usually pay attention to domains where their employer specializes in. It will be an added advantage if they intently watch what is happening in other industries which may have a direct or indirect impact on the economic …show more content…
This type of analysis is critical for IPOs or mergers and acquisitions. An expert Analyst could weigh current financial conditions as well as rely heavily on modeling and forecasting to make recommendations to senior partners as to whether or not a certain merger is appropriate for that investment bank 's client or whether another client of the investment bank should invest venture capital in a particular company.
3.2.4 Financial Analyst for Individual/Public
During the dot-com bubble, individuals or group of people (both we can refer to as public) have jumped into the market hastily. The initial luck stimulated the public to invest as much as they can so that to earn the most. All these happened without any expert judgment. And, when the bubble burst, almost all of them have lost their money.
Having a financial analyst (sometimes called a financial advisor) involved in the investment decision-making process could have made a different outcome. The financial analyst could keep his fingers on the beat of the market and track the efficiency of a variety of investments. He could have given input on where a client should place his money based on the client 's goals, needs and distinctive circumstances. This expertise could have helped many from losing their valuable money from mistaken investment