One nation cannot indefinitely pay out to foreigners more than it receives from them. This is as true of nations as it is of individuals or corporations. You cant spend money you havent got: there has to be a day of reckoning somewhere along the line, and gold is what nations have used by common consent when the day of reckoning comes. It is, in short, the only unquestioned and generally...
As the credit crisis began to bite more than a year ago market based interest rates began to rise. This reflected increased investor demand for liquidity, or cash, and the lack of supply of that cash forced interest rates higher. Global central banks responded by lowering official interest rates sharply. In addition, they pumped billions of dollars of liquidity into the global financial system...
Options are attractive to the private trader due to their special advantages. By buying options, you are given the opportunity to participating in the market with limited known risk. Besides, the capital that you need to invest is just a small fraction of the price of the underlying shares. Option buyer need to pay a premium when buying options, which is very much less than the stock prices....
Many people buy shares as a way of investing their money. Traditionally, shares make much more money for the investor than any other form of investment. The risk is also higher and the investor may lose all his money if the share market falls far enough.
Since it is also possible to sell shares quickly before the value drops too much, this possibility does not stop people from investing....
It is a well-known fact that a clever investor can make a fortune on the stock market, but not everybody understand how it is done. Although there are thousands of rags to riches tales out there, there are many thousands more where incautious investors lost everything trying to play the stocks. That is why, if you plan on stock market investing, you must get good training before you even make...
Trying to understand the stock market begins with the fundamental understanding of stocks. A stock as such corresponds to partial ownership of a corporation or business. It is the smallest share. Companies generally issue stocks to increase their capital and the investors who pay money for stock are in reality purchasing a part of the company.
Even if you only own one share in the company,...
In the next few paragraphs about the financial market, we will tell you about our views on the stock market. We are confident that you’ll find the information you get in this commentary useful. It is a well known fact that a shrewd investor can make a fortune on the stock market, but few people understand the way it is done. Although there are thousands of rags to riches tales out there,...
In the wake of the global credit crunch, stock exchanges throughout the world collapsed in tandem. Why?
1. All of them - from the mighty Wall Street to the puny Macedonian Stock Exchange - have come to depend on a regular and inexorable flow of foreign portfolio capital to sustain the bull market. When this influx of hot, speculative funds ceased and foreigners began to sell their holdings,...
The global crisis of 2007-9 was, actually, a confluence of unrelated problems on three continents. In the United States, investment banks were brought down by hyper-leveraged investments in ill-understood derivatives. As stock exchanges plummeted, the resulting devastation and wealth destruction spilled over into the real economy and caused a recession which is bound to be mild by historical...
In early July, 2008, America’s Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority and New York Stock Exchange Regulation announced that they will investigate the spreading of unsubstantiated or patently false rumors in order to manipulate the prices of stocks. Networks of broker-dealers, hedge funds and investment advisers allegedly participate in these...