Stock broker

Discuss the efficient market hypothesis and its relevance with the investment management strategies. (10 marks) The Efficient Market Hypothesis (EMH) is an investment theory that states it is impossible to “beat the market” because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information. The paradox of efficient markets is that if every investor believed a market was efficient, then the market would not be efficient because there would be…

company info to major shareholders who, in effect, withdraw large amounts of stock. Although there are a few benefits of insider trading such as creating stability,…

risk but the return on investment may be low as well. Then there are high risk investments that give you high returns. Your risk tolerance will help you determine how you will invest your money. Two markets that can bring in some good returns are stocks and bonds. Both of these assets have different feature which will determine how you will see your returns. Bonds A bond is a contract issued by a corporation or government to an investor that says that they will repay the money that they…

1. Explain why total financial assets in the economy must equal total financial liabilities Financial asset is intangible property from a contractual claim such as stocks, bank deposits, and bonds. All of them should be worth to receive monetary value. Financial liability is a company's obligation or debt which a company has to pay back the amount of borrowing money. Total financial assets and total financial should be equal it's because the balance sheet is based on accounting equation. Since…

Oakmont is one of the well known and most controversial stock scandal of all times. Jordan Belfort also known as “wolf of wall street” was a stockbroker who ended up doing a big stock manipulation. He looted his clients by underwriting an initial public offer(IPO) for a company that doesn’t exist then they used pump and dump scheme to sell its self-owned stocks by giving false and positive statements so that they can sell the low-priced stocks at higher prices. Once an opened, company…

information through the stock exchange and using it for a personal advantage. Inside traders essentially know before a company’s stock plummets, and they have the advantage to trade and sell those shares before the rest of the general public does. Insider trading is currently illegal, but there are numerous people who are trying to legalize it. There are two viewpoints of Insider trading: Those who are for it believe insider trading can increase the value of certain stocks and those who are…

I was happy when I heard from a classmate in another class that old man Moore was ending the 1st stock market game. I was doing badly in that game, so the new game was like a fresh start for me. During 6th period, I checked my first stock for that game, and saw that I made 300 bucks. However, the stock market had already ended at the time, so I could not collect my cash. The next day I checked, that 300 bucks of earnings turned into just 50 bucks. Between the closing and the opening, my earnings…

The stock market crash of 1929 was the spark to America’s Great Depression, when weaknesses in both international and domestic sides of the economy faulted. The stock market is defined as a place that sells stocks. A stock is overall ownership of all the companies. Shares are the owner of a divided portion of a company. These people who share are shareholders and are part owners of a company. Investors place money into the stockmarket by buying stocks (Furgang 6). The site where most stock…

The top management of the company was made up of close friends and family who could keep the company’s secrets. At the peak of success, the company had around 1000 brokers and assets worth over $1 billion. Unfortunately, the drive to make more money resulted in unscrupulous ways. Pump and dump Brokers began to aggressively push stocks on clients. The increase in demand caused the stock’s price to inflate. Jordan’s company would sell the holdings of…

and faster. And compare with Fidelity Contrafund, these four benchmarks are obviously far-less growth. Fidelity Contrafund has obtained 13.3% annualized until 1st July, well ahead of about 10.1% of the S & P 500. And there are more than 200 company stocks on the Fidelity Contrafund portfolio. A professional financial website Morningstar appears that the yields of Fidelity Contrafund was sharp decrease from 2007 to 2009, when Global Financial Crisis was happened, fortunately, the managers use…