Introduction Of The Foreign Exchange Market

Introduction Of The Foreign Exchange Market
Introduction to the Foreign Exchange Market As the leading financial market in the world, the Foreign Exchange Market consists of
several types of financial institutions, such as, investors, such as, central banks, brokers, and investment firms. The Foreign Exchange
Market does not have an actual physical location; it is a worldwide system of computers. Currency traders are linked together from all
over the world by these computers. Once currency traders enter the network, the computers allow them to exchange currencies by
purchasing, selling, or speculating ("Foreign Exchange Markets – Forex – Investopedia Definition | Investopedia," n.d.). In the Foreign
Exchange Market, also called Forex Market, trillions of transactions are completed everyday. Within this market are the spot market and
forward market. Spot transactions take place in the spot market. A spot transaction occurs when one currency is traded for another
currency. These types of transactions are immediate, however it takes two business days for the bank to process this transaction due to
different time zones (Standard Bank, n.d.). Forward transactions occur in the forward market and are often called foreign exchange
contracts. Unlike spot transactions, forward market transactions are set to occur on a specified future date. The agreement and exchange
rate of the transaction is already determined, however, it will be traded at a future date, which is noted in the contract (Standard Bank,
n.d.). Many historical
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John Bogle, The Founder Of The Vanguard Group
John Bogle is the founder of the Vanguard Group and the president of the Bogle financial Markets research center. He created Vanguard in
1974 and has 20 million investors in about 170 countries. Vanguard is an investment company with the largest mutual fund organization.
His business approach to negotiation is putting the people interest first and this is done by building trust and staying true to their mission
statement. He believes in simplicity and common sense. He and his business partners developed a partnership where the goal is to create
wealth for its clients and keep cost low. What is unique about this company it how the shareholders are the owner not outside companies.
Vanguard is client–focused and few investment companies can

SWOT Analysis: The Vanguard Group
The Vanguard Group, headquartered in Valley Forge, Pennsylvania, was founded in 1975 by John C. Bogle and has grown to become one
of the largest investments companies in the world. As of June 30, 2016, the company has more than $3.5 trillion in global assets, with
more than 20 million investors served by 14,000 employees, known as crew members. The core purpose of Vanguard is "To take a stand
for all investors, to treat them fairly, and to give them the best chance for investment success" (Fast facts about Vanguard). Vanguard is
able to give its investors the best chance for success by way of its distinctive capability of having low fees for its investors. Everything
Vanguard does, has a goal of keeping its expense ratios as low as possible, ... Show more content on Helpwriting.net ...
Surveys are constantly being sent and completed by internal clients, such as when a crew member contacts the IT help desk for a technical
problem. Afterwards, the crew member will complete a survey and is able to give feedback to the IT help desk so that the IT department
knows if they are satisfying their internal client. This type of feedback has lead IT division to create local help desks that are now
physically located in various buildings where crew can bring their devices in person to get the support required. Surveys such as Crew's
Views have led to expanded employee benefits and more mobile equipment, such as laptops, that allow crew to have a better work–life
balance and do things like have modified schedules or work from home. These things have led to higher crew engagement, which leads to
higher efficiency and in turn enables Vanguard to continue to lower costs for its

Mutual Fund Performance
Case a) US Mutual Fund Performance
Maastricht University | | | | School of Business & Economics | | | | Place & date: | Maastricht, 5th December 2013 | | | | Name,
initials: | Müller–Wilmes, VEMCroughs, ZWFWang, WCGerdsen, BHARack, MD | | For assessor only | | ID number: |
I6076025I6075042I6117368I6075829I6064576 | | 1. Content | | Study: | International Business Economics | | 2. Language structure | |
Course code: | EBC | | 3. Language accuracy | | Group number: | 1 | | 4. Language: Format & citing/referencing | | Writing tutor name:
| Mike Langen | | Overall: | | Writing assignment: | | | Advisory grade | | | | | Assessor's initials | |
Your UM email address: ... Show more content on Helpwriting.net ...
ct on Market Efficiency, Investment advice considering the impact of costs (Jessica/Miro)
Hot hand effect
Survivorship bias
Appendix
Single Factor model
E(rpassive) – rf = α+β RMarket+ ε R = E – rf
Passive | Excess Return | Standard Deviation | Alpha | Market | R2adj | SSGA S&P 500 index | 1,0 | | 0,07 | 1,00 | 0,95 | FIDELITY
Spartan index fund | | | 0,04 | 1,01 | 0,94 | DREYFUS S&P 500 index fund | | | –0,02 | 1,01 | 0,95 | VANGUARD 500 index funds | | |
0,00 | 1,01 | 0,95 | BGI index funds | | | 0,09 | 1,01 | 0,95 | All funds | 1,17 | 3,10 | 0,00 | 1,01 | 0,95 |
E(ractive) – rf = α+β RMarket+ ε R = E – rf
Active | Excess Return | Standard Deviation | Alpha | Market | R2adj | Aggressive growth | 1,07 | 4,87 | –0,31 | 1.18 | 0,74 | Growth | 1,01 |
3,65 | –0.17 | 1,02 | 0,96 | Income | 0,95 | 2,61 | 0,06 | 0,76 | 0,94 | Growthincome | 0,97 | 3,06 | –0,08 | 0,90 | 0,99 | Small cap | 1,14 | 4,32 |
–0,05 | 1,02 | 0,68 | All funds | 1,03 | 3,65 | –0,11 | 0,98 | 0,92 |
(1) Alpha tested for 0 and Market tested for 1 insignificant (2) At 10% significant, at 5% significant, at 1% significant
Multifactor model
E(rpassive)–rf = α+βMarket RMarket+βSMB E(rSMB)+βHMLE(rHML)+ βMOME(rMOM)+ε R = E – rf
Passive | Excess Return | Standard Deviation | Alpha | Market | SMB | HML | MOM | R2adj | All funds | 1,17 | 3,10 | 0,06 | 1,01 | –0,26 | –
0,01 | –0,03 | 0,99 |
E(ractive)–rf

Case LMVTX
LMVTX Legg Mason Capital Management Value Trust Table of Contents Executive Summary Over a period of 15 consecutive years
from 1991 to 2006, Miller's Legg Mason Value Trust (LMVTX) was able to outperform the S&P 500. In the recent 22 years, there were
two non–ideal periods of LMTVX. The first one was during the bear markets of early 2000s (from 2000 to 2002) caused by the crisis of
tech companies and the 911. The 2nd one started from 2006 to 2009 during the world economic recession resulted by subprime mortgage
crisis. However, during year 2000 to 2001 LMVTX still outperformed the S&P500. Year 2006 was the 1st first LMVTX tailed the return
of the S&P 500 since 1991. In the next five–year period after 2006, LMVTX (Red ... Show more content on Helpwriting.net ...
ETFs experience price changes throughout the day as they are bought and sold. Since LMVTX returns are adjusted to capture dividends
payments, in order to be consistent, we are going to SPY as the benchmark in our analysis of LMVTX while SPY is a tradable security
that matches the S&P500 returns and captures the dividends paid. Performance Measurement Highest Return & Least Risk To measure the
investment performance, both return and risk should be considered. That is, we use the adjusted returns for risk to do the evaluation. For
the Bill Miller's Value Trust, the appropriate measures are the Sharpe ratio and the M square, since the LMVTX and SPY represents the
entire risky investment. Other measurements, such as Treynor measure, Jensen's alpha, information ratio, Sortino ratio and Sterling ratio
can also be used as reference. We use a long observation period, from 1995 to 2012, to measure performance to achieve the precision. The
good performance means make the most money with the least risk. For active funds, like LMVTX, good performance particular means
that the fund outperform the market (SPY) or has achieved excess returns. For instance, from 1995–2005, the average return and Sharpe
ratio of LMVTX surpassed those measures of the market, which is considered as a good performance. While from 2006 to 2012, the return
and Sharpe ratio of LMVTX

Alternative Beta Funds Are All High Dividend Oriented
1) Alternative beta funds are all high–dividend oriented and therefore strive to provide low variance on high returns, achieved through a
combination of active management and passive tracking of their corresponding benchmark indices. The differing benchmarks mean that
each ETF is invested in different sectors and firms and these strategies lead to varying performance. RDV RDV matches the Russell
Australia High–Dividend Index; its investments are primarily in large, well established firms such as financials and property trusts
(highest of the four ETFs). RDV's investment consists of 50 large–cap stocks for diversification, and as firmly entrenched companies,
these value stocks tend to lower risk with a more constant stream of dividends ... Show more content on Helpwriting.net ...
IHD IHD's portfolio contains 50 securities from the ASX300, like RDV, and also limits individual equity weights at 4%, the lowest of the
four ETFs. Consequently, VHY VHY diversifies its securities by limiting sectors to 40% and individual funds at 10% to avoid
overinvestment in a single stock. These limits are the highest of the four funds and therefore VHY sees large investment in large–cap
value stock on the ASX that have a historically strong dividend payout. 2) The proxy for all ETF analysis is the ASX300 due to ease of
information availability. Ideally, individual benchmarks would also be used to identify the effectiveness of managers in matching their
desired indices. However, using the market portfolio does allow better comparison of performance individual ETFs against each other
relative to the market (Henriksson 1984) and makes analysis under CAPM, Single–Index Model and related measures more accurate.
Furthermore, the R–Squared is high for all stocks against the ASX300 indicating a robust relationship. Comparing the four ETFs, the fund
with the highest monthly excess–return, on the risk–free rate, is VHY (0.024%). Clearly this is not risk–adjusted and consequently the
reward–to–variability ratio (Sharpe 1964) is utilised to quantitatively measure return for each ETF relative to the total risk it exposes
investors to. However, the returns for all ETFs are not normally distributed, by analysing Kurtosis and skewness, and excess–returns are

Analysis Of Penny Stock Case Study
Penny Stock Case Study
The two stories talk about the meteoric price surge in the stock of a company called Cynk Technology Corporation, with no actual revenue
and tangible assets, and the purported manipulation of the stock price through a "pump and dump" strategy. It can be seen how the
Securities and Exchange Commission together with the Department of Justice opened an indictment charging several people with
conspiracy, tax fraud and money laundering involving up to $500 million in assets routed through offshore shell corporations that allowed
clients to influence stock prices and hide their gains. Generally, the fraudsters take control of an enterprise and offer to sell a chunk of
shares usually to the unsuspecting public with promises of very high returns. Promoters broadcast the company's prospects by telling
financiers to get in early before the rest of the market dives in – the pump. Shares are often bought and sold between fraudsters to give the
appearance of active trading, further amplifying interest as brokers contact clients to buy the stock. Once the price starts rising, the control
block can be dumped on the market, leaving investors with shares in a nearly worthless business (Bouraoui, Mehanaoui & Bahli, 2012). It
also parleys the increase of penny stock fraud and the Securities and Exchange Commission's inability to prosecute the fraudsters and
protect investors.
A Penny Stock, according to the U.S Securities and Exchange Commission, generally refers

The Stock Security Market : The New York Stock Exchange
The New York Stock Exchange
The stock exchange is a global network that organizes the marketplace where every day a large amount of money moves from one investor
to another with the main purpose of making a profit. There are several security markets in the United States, but one of the largest security
exchanges market is the New York Stock Exchange (NYSE). The NYSE is an auction market that uses floor traders to make most of its
trades. It has two methods of trading, the traditional floor brokers and the all–electronic order (Amadeo, 2017). The main function of the
brokers is to manage each transaction, and doing his best to get the highest price and completing the transaction. Before any trading is
done, brokers and dealers must get ... Show more content on Helpwriting.net ...
They're also an extremely transparent way of investing. It's is easy to see what assets the fund holds and it's performing. ETFs normally
have a lower cost to run and distribute than traditional mutual funds.
An Exchange–traded note (ETNs) is another product that the NYSE offers to investors. ETNs are structured investment product that is
issue by a major bank or simply a debt–note and is therefore subject to the issuer's default risk (Exchange, 2012). ETN provides investors
exposures to everything from commodity to emerging market (energy, grains, industrial metal, livestock and petroleum) and they can be
complex and carry a numerous risk. Also, ETNs are similar to ETFs, because both are listed on the stock exchange and they can be bought
and sold throughout the day (The New York Stock Exchange, n.d.). Therefore, many investors use ETNs to track some sort of index as
part of an investment strategy, because it provides flexibility for tracking the performance of the commodities, gold, volatility indexes, and
currencies.
The Exchange–traded vehicle (ETVs) is another product that the NYSE offers to investors. ETVs provide investors exposure "to
underlying assets such as futures contracts, commodities, and currencies without actually trading futures or even taking physical delivery
of the underlying assets or an asset index" ( The New

Impact Of Etfs Trading On Underlying Securities
Because price changes in ETFs directly reflect market information and alter investors' behaviours and asset allocation, the underlying
security liquidity and volatility should be scrutinized. The third main strand of academic literature has revealed that the potential impacts
of ETFs trading on underlying securities, and the markets as a whole, is of substantial interest to both investment professionals and
financial academics. There is an extensive amount of research that emphasises the effects on liquidity, volatility and valuation. In fact,
ETFs' impact on the quality of underlying securities is not an unexplored area to theoretical or empirical academics. Existing studies have
examined the effects of ETFs introduction on their underlying indices or composite securities. Subrahmanyam (1991) and Gorton et al.
(1993) established theoretical models to test "basket securities", including index–linked securities or index futures contracts (Charupat and
Miu, 2013). The models predicted liquidity migration to component securities and indicated that the level of diversification of a composite
security is positively correlated with its appeal to liquidity traders. The analysis was based on the idea that component stocks were
diversified (with no firm risk), and the liquidity traders, thus, expected lower losses to informed traders by trading in composite securities
rather than in underlying individual securities. Due to lower transaction costs, basket securities were more

Closing Case 13
Closing Case: Chapter 13
Bonnie Jordan
Managerial Finance
Instructor: Kristi Rayford
March 11, 2013
The Closing Case in Chapter 13 focuses on options for a 401K for an employee of the East Coast Yacht Company. Several decisions must
be made regarding investments, which will be highlighted in this discussion. Equity investments can go into the S & P 500 or an
index related option. The former has lower fees, and the latter higher ones. Other elements to be discussed include the aforementioned
investment options, graph implications regarding mutual fund investors, market efficiency, and an equity investment decision to be made
by the East Coast Yacht employee. The East Coast Yacht company's finance representative, Dan ... Show more content on Helpwriting.net
...
With the equity portion of my 401(k) account, equity decisions would be made to favor large cap stocks as they have more opportunities
to increase in value, even though they can be "pricey". As Moreano (2013) states, "The Dow Jones Industrial Average is on track to close
positive for the 10th consecutive Friday. So far this year, the Dow industrial average rose 600 points in the last 10 Fridays. That accounts
for about ha lf of this year's point gains – the index is up 1,274 points. Since the first half of 2007, this will be the longest streak when 12
consecutive Friday set the record. Continuing, Moreano (2013) posits "Within the Dow, seven out of thirty stocks are responsible for
adding more than 50 percent of this year's point gains: International Business Machines, 3M, McDonald's, United Technologies, Chevron,
Travelers, and Home Depot". In conclusion, the Closing Case in Chapter 13 focuses on options for a 401K for an employee of the East
Coast Yacht Company. Several decisions were made regarding investments, which were be highlighted in this discussion. Equity
investments can go into the S & P 500 or an index related option. The former has lower fees, and the latter higher ones. Other
elements discussed include the aforementioned investment options, graph implications regarding mutual fund investors, market efficiency,
and an equity investment

Analysis Of Meteoric Price Surge On The Stock Of A Company...
The two stories talk about the meteoric price surge in the stock of a company called Cynk Technology Corporation, with no actual revenue
and tangible assets, and the purported manipulation of the stock price through a "pump and dump" strategy. It can be seen how the
Securities and Exchange commission together with the Department of Justice unsealed an indictment charging several people with
conspiracy, tax fraud and money laundering involving up to $500 million in assets channeled through offshore shell companies that
allowed clients to influence stock prices and hide their profits. Generally the scam artists, gain control of an enterprise and offer to sell a
block of shares usually to the unsuspecting public with promises of very high returns. Promoters broadcast the company's prospects by
telling financiers to get in early before the rest of the market dives in – the pump. Shares are often bought and sold between nominees to
give the appearance of active trading, further amplifying interest as brokers contact clients to buy stock. Once the price starts rising, the
control block can be dumped on the market, leaving investors with shares in a nearly worthless business.. It also parleys the increase of
penny stock fraud and the Securities and Exchange Commission's inability to prosecute the fraudsters and protect investors.
A Penny Stock, according to the U.S Securities and Exchange Commission, generally refers to low– priced securities of very small
companies, usually below

Mutual Funds, Vanguard Paper
Vanguard Mutual Fund Evaluation
FIN/420
1/26/2014
The Vanguard Group The Vanguard Group offers an array of mutual funds, exchange–traded funds, brokerage, and asset management.
When choosing and comparing mutual funds, there are characteristics that you need to first evaluate. This paper will review five different
categories of mutual funds that Vanguard Group offers its investors.
Actively Managed Common Stock Fund The Selected Value (ticker VASVX) is an actively managed common stock fund with a 4 star
Morningstar rating with a minimum investment of $3,000. This fund does not have a front or rear load fee. The total annual fund operating
expenses are 0.41% which means that for every $100 you invest, $.41 goes to paying the ... Show more content on Helpwriting.net ...
The funds asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will
decrease while the percentage of assets allocated to bonds and other fixed income investments will increase. This investment is superb for
long–term investors like myself.
The fund inception occurred on October 27, 2003, and has been managed by Michael Buek since 2014. The fund inception date tells us
that the mutual fund has been around for 23 years and the fund manager for one year. This fund has been up for ten years and down for
one year which tells us that the new manager may have not been the correct choice.
International Fund Developed Markets Index Admiral Share (ticker VTMGX) is a Vanguard International Fund with a 3 star Morningstar
rating and a $3,000 minimum balance. This fund does not have a front or rear load fee. The total annual fund operating expenses are
0.06% which means that for every dollar that you invest, $.06 goes to paying the person who sold you the fund. The expense ratio is also
low at 0.09%. According to "Best Vanguard Index Funds 2014 (2009–2015), "the index fund provides investors low–cost diversified
exposure to developed foreign markets. The fund invests in companies located in Europe, Asia, and Australia, which make up 75% of the
non–U.S. equity market" (para. 2). There are five primary industries that this fund encompasses.

The Performance Of Selected Gold Exchange Traded Funds
AN EMPIRICAL INVESTIGATION ON THE PERFORMANCE OF SELECTED GOLD EXCHANGE TRADED FUNDS WITH CNX
BSE 500 ABSTRACT In India, gold ETFs were started mainly with a goal to build the liquidity for the better market productivity. This
paper is an exact investigation of the execution of Gold Exchange Traded Funds with CNX BSE 500 since January 2012 till April 2016 as
far as active returns and Jensen 's alpha. For this concentrate only bank 's Gold ETFs has taken into the thought i.e. SBI Gold ETFs, Axis
Bank Gold ETFs and HDFC Bank Gold ETFs. The active returns (returns of the trade exchanged assets subtracted with the profits of
fundamental list) examination demonstrates that Gold ETFs beat in greatest years when contrasted with their underlying index i.e CNX
BSE 500. The concentrate likewise uncovers that Jensen 's alpha is negative in few of the years, which implies that Gold ETFs have not
possessed the capacity to give overabundance returns over CNX BSE 500. In general, the study uncovers that Gold ETFs have performed
better in term of active returns. Key Words: ETFs, CNX BSE 500, Active returns INTRODUCTION Gold ETFs are open ended exchange
traded funds that help the financial specialist, put their cash in gold which is 99.5% unadulterated. Gold Exchange Traded Funds are
otherwise called paper gold. These are recorded on the stock trades and financial specialists are allocated units of the shared asset where
every unit regularly speaks to one gram of gold. There are ETFs

Smart Bet An Approach For Investing?
'Smart Beta' an Approach to Investing?
The term 'Smart Beta' is a catchy title for an increasingly significant approach relating to exchange traded products (ETPs). Particularly its
potential ability to outperform standard benchmark indexes has resulted in its market appeal and growth. However with its expansion
warrants the necessity to educate investors, in order to understand the suitability, benefits and limitations of this approach.
Limitations with previous approaches?
Before we analyse the foundations of smart beta approach, an understanding of why it has emerged is essential. As with all progressions
and new approaches within the financial industry, the smart beta approach has gained popularity as an alternative due to flaws ... Show
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It would then rebalance when needed i.e. buying and selling of stocks, to help revise weightings to reflect changes in the index over time.
This result in an adverse selection as more weighting will continue to be allocated to large companies such as CBA that have a higher
price is higher.
On the other end of the spectrum choosing an active approach presents its own issues. Finding consistent performing active fund managers
who can deliver returns greater than the market is very rare. According to Standard & Poor's SPIVAAustralia scorecard in 2012,
approximately 69 percent of active retail Australian equity funds failed to beat the S&P/ASX Accumulation index and 72 per cent of
active international equity funds failed to beat the benchmark. This coupled with high premiums charged for active management and lack
of transparency in managing processes diminishes the appeal of active management approach further.
Understanding Smart Beta
The 'smart beta' approach should be more accurately described as 'strategic beta' as it aims on improving the flaws of passive index based
approaches. It has become an umbrella term for alternative weighting and factor based investing. In essence you take an active approach
to choosing the rules to base your fund. But once set, the rules passively

How Etfs Can Make The Financial System Less More Than One...
A growing number of investors have become familiar with exchange–traded funds (ETF). ETFs have transitioned from a closet industry to
a mainstream investment that has rapidly integrated into leading investment indexes. This paper examines that ETFs are able to take on
more than one simple form, such as a synthetic ETF, which in turn can make the financial system more vulnerable to their presence.
Varying away from the conventional "index tracking" ETFs are synthetic ETFs. Failure in one of these types of ETFs has the ability to
endanger the global financial market with impacts both social and political.
Conventional ETFs are purchased and redeemed directly from the company funding them, which emphasizes their simplicity. To maintain
their simplicity they are tracked once a day at net asset value, and there are trading restrictions in order to curtail continuous trading. On
the other hand, with added risk and complexity are synthetic ETFs. Synthetic ETFs are designed to track a specific index, that they do not
physically hold all the securities in the index. These ETFs mimic the behavior of an exchange–traded fund by entering into a swap
derivative contract with a counterparty which is a usually a bank. Providers of the ETF sell the shares to investors in exchange for
monetary value, which is then placed in a collateral basket with the counterparty. Synthetic ETFs are a more competitive offering for
investors as it's difficult to access them in public markets; the process

Marketing At The Vanguard Group Essay
Marketing at the Vanguard Group In light of an evolving market, faced with new competitors, and after a careful analysis of their current
customers, the Vanguard Group (hereinafter referred to as "Vanguard") realizes it must rethink its entire marketing strategy. However, in
order to protect and leverage their competitive advantage, which is their low management fees, and to optimize the loyalty that their
customers continuously demonstrate toward their organization, they must now target the most profitable segment for them, and develop
the best way to serve and delight these customers. SITUATION ANALYSIS Highlighted SWOT Strengths Low fees strategy; Consistently
above average performance and competitiveness of the ... Show more content on Helpwriting.net ...
IDENTIFICATION AND EVALUATION OF ALTERNATIVE STRATEGIES Identification and Preliminary Evaluation of the
Alternatives Alternative 1: Concentrate on their current clients, broaden and deepen their relationship with them, while maintaining
current offerings PROS: Easier to market to current clients (Vanguard already has information about them and a direct way to
communicate with them = low marketing costs involved) More than 80% have funds in other organizations (big potential) High
satisfaction and loyalty rates Strengthens the customer focus orientation The needs of the below $1M segment are in line with the current
Vanguard product offering Important database of members involved in pension plans (through their employers) CONS: Clients may not
want to put all their holdings with Vanguard Not all the current customers are profitable Vanguard may not offer all the products and
services that these clients need High net worth clients are expensive to serve Alternative

The Virtue Of Putting A Financial Stake On The Stocks And...
The virtue of putting a financial stake into both the stocks and exchange traded funds (ETFs) is a sprawling and a dazzling investment
decision. However, (Reiss, 2016) explains that it may also turn negative is the stock and ETFs screening process is done blindly. Based on
Yahoo finance and ETFdb ETF Screener, I chose to invest and trade in the following stocks, equity and non–equity exchange traded funds:
A. Stocks:
1) Delta National Gas Company, Inc. (DGAS) from gas utilities (utilities industry)
2) Alcoa Inc. (AA) from Aluminium (Basic Materials) industry
3) American Eagle Outfitters, Inc. (AEO) from Apparel Stores (Services) industry
4) American Software, Inc. (AMSWA) from Application Software (Technology) industry
5) Asbury Automotive Group, Inc. (ABG) from Auto Dealership (services) industry
B. Equity exchange traded funds (ETFs):
1) Vanguard Dividend Appreciation ETF (VIG); dividends
2) WisdomTree MidCap Dividend Fund (DON); dividends and growth at a reasonable price
3) SPDR S&P Dividend ETF (SDY); currency hedge, dividends and growth at a reasonable price
C. Non–equity exchange traded funds (ETFs):
1) PowerShares Senior Loan Portfolio ETF (BKLN); to earn interest rates
2) PowerShares Build America Bond Portfolio ETF (BAB); earn interest and build America
Evaluation of stocks chosen/screen stocks Summary and discussion of Stock selection
From the table shown above, I used a bottom–up and aggressive approach to study and screen the kinds of stocks to

Democratization Of The Market Case Study
In the past, private individuals and large institutions have largely invested in actively managed mutual funds, such as Fidelity, in which
fund managers choose stocks with one goal – to surpass the market.
But after the financial crisis of 2008, investors switched to index funds, which reproduce stock indices, such as the S & P 500.
The scale of the changes is striking: from 2007 to 2016. in actively managed funds an outflow of about $ 1.2 trillion was recorded, while
index funds received more than $ 1.4 trillion.
In the first quarter of 2017, index funds raised more than $ 200 billion – and this is the highest quarterly growth.
Democratization of the market, this shift, the shift, perhaps the largest in the modern history of investments, ... Show more content on
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According to the S & P 500 – the benchmark index of the largest corporations in America – the situation is even more extreme. Together,
the Big Three is the largest shareholder in almost 90% of the index companies, including Apple, Microsoft, ExxonMobil, General Electric
and Coca–Cola. This is the index in which most people invest.
The power of passive investors
With corporate property comes the power of the shareholder.
Recently, BlackRock claimed that it had not legally been the "owner" of the shares on its balance sheet, but rather acts as a kind of
custodian for its investors.
This is common practice for lawyers.
What can not be denied is that the "Big Three" still uses the right to vote with these shares. Therefore, they should be perceived by the
owners of de facto corporate leaders.
These companies have publicly stated that they are seeking to exert influence. William McNabb, chairman and chief executive officer of
Vanguard, said in 2015 that "in the past, some mistakenly believed that our predominantly passive management style implies a passive
attitude toward corporate governance, but that's very far from the truth."
And if you analyze the vote of the Big Three, it turns out that it is coordinated through centralized departments of corporate governance.
This requires considerable effort, because technically

Vanguard Group Case Study
The Vanguard Group was founded by John C. Bogle in 1975 with one mission in mind–to build wealth for its clients and only for its
clients [1]. It pioneered the industry first index fund and operated in a business model which was unheard of at the time.. low–cost
investing for all investors. Its corporate structure is still unique among mutual fund providers. Since Vanguard is not publicly traded or
privately owned, all profits are returned back to investors in the form of lowering investing costs. Every decision has the client's best
interest in mind. While Vanguard has $4.3 trillion in investment assets and cash flows continue to pour in year after year, it has historically
invested very little in business intelligence and data analytics. ... Show more content on Helpwriting.net ...
Three years later, it is still starting to connect the "client journey" where client interactions over the phone, web, and mail can be analyzed.
As part of the enterprise–wide analytics, there are efforts to centralize a data mart where analysts across the firm can access to understand
the full client experience. It is evident Vanguard aspires to be an analytical competitor in the investment world. It is challenging each
business unit to conduct predictive and prescriptive analytics. Analyzing client and employee behaviors on the top priorities. Business
decisions that were once made by gut–check now requires data as a source of proof. Vanguard has historically been a slow–and–steady
business where decisions are made in consensus and new strategies has a cycle time of months or years. It operated at extremely thin
margin to make sure it can keep operational costs at a bare minimum for its clients. That mindset officially changed when it opened its
Innovation Center in center–city last year which will work closely with academics and consultant firms to bring R&D ideas to the
forefront. Vanguard has a track record of analyzing internal processes in the areas of corporate finance and human resources. One
measurement that is often discussed is the Customer Lifetime Value, which is the net profit attributed to the future relationship with a
customer. This metric is used in budgeting and allocating investment dollars throughout the firm. There was a

A Mutual Fund Is An Open End Speculation Organization
A mutual fund is an open–end speculation organization that puts cash of its shareholders in a typically expanded gathering of securities of
different companies, as characterized in the Merriam–Webster word reference. Common assets help with financing and contributing open
doors. They allow the little financial specialists to put their cash in different ranges other than stocks and bonds. There is numerous
common assets to browse and distinctive reasons why shareholders ought to pick them. As mainstream as common assets have ended up,
there is ruins to them like most speculation opportunities. In 2003, mutual funds were giving an awful name when an outrage was brought
open. Getting to be real suppliers of assets in the budgetary business sector, mutual fund have turned into an extremely prominent interest
as of late. On account of the assorted qualities of ventures, portfolio administration 's mastery, and liquidity, shared assets have become
quickly in the course of recent years. A standout among the most prominent gathering 's putting resources into common assets is
individuals with self–propelled retirement arranges. This gives professionally took care of cash and pooled hazard. There are more than
8,000 diverse common assets, with more than 88 million families owning shares of one or more. Mutual funds pool ventures by individual
speculators and utilize the assets to oblige financing needs of governments and companies in the essential markets. Interests

`` Gold Grab `` : Relationship Between Robber Barons Jay...
Reed Karaim in "Gold Grab" analyzes the relationship between robber barons Jay Gould and Jim Fisk. They were partners in crime. In
1869, they were working on a plan to rob the U.S. gold market. This article focuses on how Gould and Fisk use their connections with
inside people including President Grant, to change gold prices. This led to the economy collapsing on September 24th, 1869, this day is
famously known as Black Friday. Jay Gould was most comfortable in his home. He was very secretive about his life. He had come from
an innocent background, only to rise as a "ruthless financial predator" (Karaim 57). Jim Fisk was a ladies man who liked to keep up a
good look. His mustache was always perfect and his outfits were like a nice ... Show more content on Helpwriting.net ...
In order to corner gold, someone had to keep treasury from selling so they had to get close with the highest power. Their way in was
through Abel Corbin, President Grants brother–in–law. For a payment of 1.5 million dollars, Corbin agreed to help with the scheme. They
wanted to take over the United States treasury and control everything. Gould's idea was that if the treasury didn't sell any gold the price
could go from $130 to $150 and this would help the economy. President Grant, by this time, was part of the scheme. He was not fully
aware of everything going on but he knew enough. Grant had realized that Gould made a bribe attempt and was outraged by it. This led
Gould to realize that his plan may have been falling apart. He figured the only way out before the collapse of the market was to betray his
partner. So he did what he felt he could do to save himself. Soon after this the price collapsed into the $130's and continued to mumble.
More and more men were becoming poor at the gold exchange. As the minutes passed, this is the day that would become known as Black
Friday. The crash lasted for several months on Wall Street and for years in other places. They lost a total of about 100 million dollars. A lot
of the big men who were involved escaped punishment. Fisk was questioned but claimed he had no idea, he said that his brokers were
working on their own. Corbin lived and

What Is A Commodity?
What is a commodity?
Commodity is term that every one of us has heard at one point or another in life. Commodity is a popular term thrown around in the
financial industry, and was created five hundred years back somewhere in the 15th century in order to describe a financial benefit or profit.
Today, commodities are considered as certain valuable goods that are produced in bulk and have certain uniform qualities across the
board. According to Wikipedia the definition of a commodity is as;
"The exact definition of the term commodity is specifically used to describe a class of goods for which there is demand, but which is
supplied without qualitative differentiation across a market."
From the above definition it is clear that commodities are not only in demand but also maintain a consistent price. Here it is important to
note that anything having a price must have a value. So commodity must possess certain value in terms of its use or reuse. For example, ...
Show more content on Helpwriting.net ...
Clay token were used at that time to represent specific amount. In Europe in the late 10th century commodity market established in order
to facilitate land, labor and services. Between the late 11th and 13th century the market not only expanded but organized due to English
urbanization and regional specialization. In 1466 reliable scales were installed in the village of Sloten and Osdorp in order to facilitate the
villages to scale their local produced goods. The Chicago Board of Trade (CBOT) was the first chartered commodity market established in
1849 in order to ensure a fair trading. Few years later Chicago in 1865 introduced future contracts. In 1870 Chicago moved 60 millions of
bushels that show the success of the market in its early phases. Looking at the success the federal government began or properly regulates
the market. A chronological summary of commodities market is given here as

Company Overview Of ETF Options
Trevir Nath
ETF Options
Exchange Traded Funds (ETFs), similar in many ways to mutual funds, are investment funds traded on stock exchanges. ETFs track the
performance of commodities, bonds, and large indices such as the S&P 500 (SPX), NASDAQ (IXIC), Dow Jones (DJI), etc. Much like
stocks, ETFs experience price changes throughout the trading day in which they are bought and sold. Fundamentally, the prices of assets
traded remain close to, but not always equal, to its net asset value. Largely attractive due to lower costs, flexibility, minimal capital gains
taxes, and leverage for market exposure, ETFs have become popular amongst investors. With a recent influx of ETF investments, the risks
associated can have severe ramifications to the individual investor and financial markets. To mitigate these risks, ETFs can have options
written against them as a hedging strategy for speculative investors.
ETF Overview Following the 2008 Financial Crisis, financial institutions sought alternative investments offering structure, transparency
and liquid products. At face value, ETFs provide investors with a vehicle to meet their demands. Exchange traded funds are classified as
open ended funds allowing investors to gain diversified exposure to financial assets ranging from emerging markets to large indexes. ETF
shares are created by financial institutions which replicate the market movement of an underlying index. For example, SPDR funds are a
group of ETFs tracking the movement of

The Pros And Cons Of Gold Rates
Commodities:
Putting aside a specified sum of money and expecting some kind of return out of it within a certain time period is what financial
investment is all about. Various types of financial investments are mutual funds, fixed deposits, bonds, stock equities, real estate,
gold/silver and precious stones.
Interests in stocks, gold and oil contracts are dependably thought to be the best wellspring of interest in developing economies.
Speculators of Pakistan are differentiating their speculation into gold, on the grounds that such speculations regularly have had a converse
association with stock exchange developments. Investment in the gold is considered as the most secure investment today. There are
numerous reasons behind that but since of old customs and traditions gold is vital in this part of the world. Gold is vital thing in any
marriage work particularly in South Asia.
Gold prices/rates in Pakistan are for the most part subject to two primary elements. To begin with are the International Gold rates. If the
International Gold rates fall or rise, then the Gold rates in Pakistan also fall or rise in same manner. This phenomenon is not only valid for
Pakistan but it serves of the world as well. ... Show more content on Helpwriting.net ...
Dollar Exchange rate. Gold rates in Pakistan will climb or fall invariably at whatever points the Pakistani Rupee falls or rises against the
U.S. Dollar. In case U.S. Dollar raises in relation to other various foreign currencies it would make commodities much more costly for
non–U.S. Dollar countries since it has the power to influence the prices of essential commodities around the world. This ultimately
reduces demand as other countries find it hard to purchase the same amount of commodities at the higher price. U.S. Dollar is expected to
increase in the coming New Year which will have severe repercussions for the economies around the

Government Website Used for Planning
The government Website assists exporters with their planning in multiple ways. It is so convenient to be able to use the website to help out
business firms completing the mission in exporting goods. The website explains how to export products effectively into the international
market. Connecting exporters to buyers is one of the methods used to expand globally to national partners. Determining how the
government website assist exporters planning and leveraging two resources in short and long term planning will be discussed. In Virginia,
the export assistance centers on the government website explains the impact of leveraging global network. (Companies Export, 2011)
Networking 165 offices in 82 countries around the world as a multitude of local and national partners. There are two U.S. Commercial
Service Export Assistance Center in Virginia. One is located in Arlington and the other is in Richmond, Virginia. The government website
also explains the depth industry and tradecraft counseling coupled with exporting services allowed to specialize international business
solutions. There is a market research on the website, which help people to learn their product potential before they put it on the market for
business practice. Individual(s) learning these basic steps help beginners sell internationally and explain how to narrow the focus on
products. Basically, the individual(s) should concentrate no more than three best prospect markets. (Companies Export, 2011)

Abcd
9 –9 1 4 –5 6 5
JULY 10, 2014
WILLIAM FRUHAN JOHN BANKO
Thompson Asset Management
"Thanks, Peter. I look forward to meeting you next week as well." Allison Thompson cradled the phone and looked out her office window
at the Florida riverfront as she considered the possibilities and implications of her conversation with Peter Landman. As CEO and founder
of Thompson Asset Management (TAM), an investment management firm that she had started in Jacksonville, Florida, in 2009, Thompson
had grown the firm from a single client and a $500,000 investment to about $83 million in assets under management (AUM) in two funds.
TAM had a proven track record of beating benchmarks and managing downside risk. The success of her strategies had brought ... Show
more content on Helpwriting.net ...
Without missing a beat, she returned to her hometown of Jacksonville and started TAM. Although the first few years were difficult, TAM
gave her a platform to further test and implement her investment ideas. Thompson considered herself a market strategist, and TAM's initial
fund, ProIndex, was designed to achieve returns in excess of the benchmark S&P 500 index while maintaining a risk level consistent with
the index. The easiest way for her to maintain and adjust equity market exposure was to "index"
________________________________________________________________________________________________________________
HBS Professor William Fruhan and writer John Banko prepared this case solely as a basis for class discussion and not as an endorsement,
a source of primary data, or an illustration of effective or ineffective management. Although based on real events, and despite occasional
references to actual companies, this case is fictitious and any resemblance to actual persons or entities is coincidental. Copyright © 2014
President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1–800–545–7685, write
Harvard Business Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. This publication may not be digitized,
photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School.
This document is authorized for use only by Akshay Agarwal

Portfolio
w
rP os t
S
908N20
ALEX SHARPE'S PORTFOLIO
op yo Professor Colette Southam wrote this case solely to provide material for class discussion. The author does not intend to illustrate
either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying
information to protect confidentiality.
Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this
material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce
materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of ... Show more content on Helpwriting.net ...
RISK AND RETURN
op yo R.J. Reynolds Tobacco Company (RJR) was the second–largest tobacco firm in the world, with a share of approximately 30 per cent
of the U.S. cigarette market. R.J. Reynolds was a wholly owned subsidiary of
Reynolds American Inc. (NYSE: RAI). The company faced some unique challenges; for example, most consumer–product companies did
not have to spend millions of dollars annually on advertising aimed at discouraging use of their product for consumers under the age of 18.
R.J. Reynolds had been subject to significant litigation for many decades, but the company had a strong track record in defending
tobaccorelated cases in court and assured its shareholders that it would continue to take appropriate steps to maintain a successful
litigation record.
Do
No
tC
The last five years' worth of monthly returns for the Vanguard 500 Index Fund, Hasbro and R.J. Reynolds are provided in Exhibit 1. In
addition to comparing the returns on the individual components of her portfolio, Sharpe also wanted to fully compare the risk profiles of
the two companies to that of the
Vanguard Fund. She wanted to ensure that the expected return of her new portfolio would provide adequate compensation for taking on
any new risky assets.
This document is authorized for use only by Khurram Mehtab until

Exchange Traded Funds
Internationally, the flow of capital across national borders and into markets once believed to be impregnable is occurring at the speed of
light. Technological innovation, accessibility to international market economies, and increased globalization has expanded the universe of
securities available for investments and more importantly portfolio diversification. The developments mentioned above questions
traditionally accepted principles by investors who believed that investing solely in U.S. securities would result in a better risk–return
tradeoff. Prudent investors have known that diversifying across industries and markets will lead to a given level of expected return at a
significantly lower level of risk, and vice versa. However, the advantages of such diversification are limited due to the same cyclical
economic fluctuations that all assets (or companies) in a particular country are exposed to. The availability of a universe of assets
internationally, and accessibility to these assets and the markets where they trade has opened a plethora of opportunities to investors across
borders who seek diversification accompanied by return maximization and corresponding risk reduction through international portfolio
investments. Moreover, the limiting effects of economic cycles on assets in a particular country can now be hedged through international
portfolio formation and investing that incorporates the advantage of cross country diversification in nations whose economic cycles

The Importance Of The Stock Market
2017 was a great year for all three stock market indexes. The Dow Jones Industrial Average is up 25 percent, the S&P 500 is up 19
percent, and the NASDAQ is up 28 percent. The increases in these markets reflected a booming U.S. economy and excellent corporate
profits. The expectation of President Trump signing a tax cut bill, which he signed a few days before Christmas, also fueled the rise in the
stock market.
One of the things this tax cut bill offers is a lowering of the corporate tax rate from 35 percent to 21 percent. Because of this, American
businesses are expected to return hundreds of billions of dollars in foreign profits back to the U.S., higher more workers, spend money on
building domestic factories, and pay down debts. This ... Show more content on Helpwriting.net ...
You may see terms like investing, saving, and trading used interchangeably, but these terms have different meanings. Investing involves
having a long–term goal of five or more years where you are looking to maximize profits with a reasonable amount of risk. Saving can
either be short–term or long–term, but unlike investing, saving involves little to no risk. Saving is more about preserving capital rather
than growing capital. Trading involves short–term ownership of stocks. Ownership can be anywhere from a few minutes to one year.
Traders analyze stocks like investors, but traders are more interested in short–term swings in the market for immediate profits. If you are
looking to secure your financial future, it is best to invest.
What kinds of investments are out there?
There are many different types of investment available that can suit your investment strategy and risk tolerance. Here is some basic
information about different types of investments that can help you achieve your financial goals:
Stocks – Owning shares of a company means you own a piece of that company. You can own shares of a small company with one location
and less than a million dollars in annual revenue to a large multinational company with billions of dollars in annual revenue. The types of
stocks include domestic, international, penny, growth, value, and many more. Many stocks pay dividends that you can take as cash or you
can reinvest and purchase more shares. You can

Mexican Peso: Comparison With The US Dollar
The foreign currency chosen in the comparison against the U.S. Dollar is the Mexican Peso (MXN) for the years of 2005 to 2010. The
Mexican Peso has had a history of periods of stability that have been followed by periods of inflation and devaluations. In 1993 the Bank
of Mexico introduced a new currency, the "new peso" which brought more stability to the economy. There was more demand
internationally for Mexican stocks and treasury certificates known as Cetes, this kept the New Peso at a stable level of about 3.1 for most
of 1993. After briefly reaching 11.50 to the dollar in the late 1990's, the peso had several years of ups and downs, gaining to less than 10 to
the dollar just before the global economic crisis of 2008. Since that crisis ... Show more content on Helpwriting.net ...
This sharp drop in exports to the United States led to a large drop in industrial production. Mexico's high economic dependence on the
United States made the external demand shock particularly severe. Between the third quarter of 2008 and the second quarter of 2009,
700,000 jobs were lost, 260,000 of them in manufacturing, which negatively affected the flow of remittances to Mexico. Remittance
inflows, which are largely from the United States, are Mexico's second–highest source of foreign currency after oil. The country's fiscal
position also weakened because oil revenues fell, partly due to the drop in international energy prices brought about by the global
recession as well as the decline in domestic oil production. (Sidaoui, Ramos–Francia and Cuadra, 2010) Mexico's gross domestic product
(GDP) contracted by 6.6% in 2009, the sharpest decline of any Latin American economy. Another area affected by the US crisis was
exchanged traded funds (ETF), a unique investment fund that has properties of both mutual funds and stocks. One Mexican ETF known as
EWW, is a security that tracks a basket of assets, but trades like a stock. EWW tracks the MSCI Mexico Investable Market; this equity
index measures the performance of the Mexican equity market. iShares MSCI Mexico (EWW) falls under the Latin America Equities
category and is comprised of 59 holdings spanning every sector of the economy and carries an expense ratio of 0.50%.

Dimensional Fund Advisors
Dimensional Fund Advisors 2002
Introduction:
Dimensional Fund Advisors (DFA) is an investment firm based in Santa Monica, California. It was founded in 1981 by David Booth and
Rex Sinquefield. It is a different investment firm which think differently and push the frontiers of innovation. The firm had close working
relationships with academics such as Eugene Fama and Kenneth French who introduced the Fama & French three factors model.
Fama has worked in DFA since very early days, now he is the director of research department of DFA. He is known for his work on
portfolios and asset pricing. This report is going to discuss the business strategy of DFA, issues relating to Fama & French Three
Factor Model such as variables being used ... Show more content on Helpwriting.net ...
This model is an expansion of the CAPM and it includes two additional variables, taking into account size and book to market factors, as
explanatory variables expressed within the model as SMB and HML. The Capital Asset Pricing Model (CAPM) and Fama & French's
three factors model are both models account for the expected returns for stock albeit using different variables to distinguish and add
reliability to the predictions of these estimated returns. However, the CAPM uses only one factor to determine the riskiness of the
marketplace, Beta, whereas Fama & French expands on this model, incorporate another two factors to establish the risk, Small minus
Big (SMB) and High Minus Low (HML), which take into account the relationships between market and share size. Hence, in Fama
& French's findings, stocks with higher beta did not always perform better. The Three Factor Model is indeed preferred at predicting
the returns of stocks, in correlation with each models risk factor.
Moreover, although small stocks outperform large stocks in the past several years, we should not expect small stocks to outperform large
stocks in the future, because, in the future stock market, there're quite a lot uncertainty, either, we might find the situation that a small
stock can only outperform a large stock in a specific period (i.e. government may promote some specific industry) or it contains

Vanguard Group Case Study
The Vanguard Group turned 42 years old this year and its mission statement remains the same – To take a stand for all investors, treat
them fairly, and give them the best chance for investment success. It pioneered the industry first index fund and is one of the largest asset
management companies in the world. Year after year Vanguard dominates in cash flows and client advocacy. Part of its success can be
attributed to its unique corporate structure... The Vanguard Group is owned by its funds which are owned by investors, and the board of
directors is tasked to commit to the best interests of the clients. With such a great brand recognition and strong foothold in the industry,
what are the components in Vanguard 's value chain? Vanguard is ... Show more content on Helpwriting.net ...
Since its inception, Vanguard has offered multi–channel services to all investors. This includes deferred compensation/benefit plans
(401K, 403B, 457, pension), plans for children (529, UGMA/UTMA, ESA), and individual savings accounts (retail, IRA). Strategically, it
does not offer high cost products like annuities and transactional funds. This is because these investments tend to be expensive for the
client recurring commissions are paid to the broker who sold the products. In addition, they are difficult for the client to understand the
fees and payout. As part of its commitment to all investors, which includes low income and finance illiterate individuals, Vanguard only
offer products that it feels adds value to all types of portfolios. The services that Vanguard provides are usually best in class or among the
top competitors in those. In the world of deferred compensation plans (pensions), Vanguard held a very small market share relative to its
competitors. Unless individual accounts or 401k plans, it is extremely hard for companies to move their pension plans from one record–
keeper to another. Three years ago, Vanguard fall out of the top 15 pension record–keepers in terms of assets under management. Since it
couldn 't take advantage of the economies of scale, Vanguard decided to get out of the pension business and began migrating those assets
to a few competitors. This is an example of Vanguard 's commitment to its competitive advantages, and

Global Exchange Traded Products Industry
Over the past 5 years, ETFs have surged in popularity as they continue to grow and evolve. Just this past year, the global exchange traded
products industry reached another milestone, topping $3 trillion in combined assets under management. Now investors are searching for
the next asset class which will expected to explode on the scene as ETFs have recently. They may have found it last week when Eaton
Vance rolled out the first of its Nextshares products. The funds, commonly called exchange traded mutual funds, are actively managed and
traded at the funds net asset value but carry low fees found with traditional ETFs.
Where Can You Find Them?
After receiving approval of the whole concept in late 2014, Eaton Vance's pipe dream of an mutual fund ETF has finally become a realty.
A little over a year follow its approval, the first fund has final hit the market under the symbol EVSTC. Eaton Vance debuted its new asset
with a momentous ringing of the Nasdaq opening bell. The exchange traded managed fund segment could help provide the next surge in
the industry as multi–asset managed increasingly adopt ETFs. The first of these funds are exclusively available via Foliofn's investment
platform. Foliofn is the first broker dealer to distribute NextShares, rolling out to hem out to the robust catalog of advisors and consumers
on Folio's platform. The company's innovative platform and pioneering technology made it possible for security to reach the market.
Investors have been long

Gold Standard Foreign Exchange Market
Gold Standard Foreign Exchange Market The gold standard is a monetary system in which the standard economic unit of account is a
fixed weight of gold. With the gold standard, the United States economy would print currency that equaled a specific value of gold.
Meaning, you could cash in your money for a specified amount of gold because a unit of currency equals a specific amount of gold. As
stated in chapter 5 of International business, 10th edition, "the gold exchange standard, established at Bretton Woods after World War II,
worked until the 1970's when it collapsed due to inflation and the surplus of U.S. dollars held outside the United States." They used gold
because its rarity, durability, and the general ease of identification ... Show more content on Helpwriting.net ...
Smaller retailers would most likely be ruined in these types of transactions because of the lack of knowledge and playing power when it
comes to trading in a high risk format and are usually discourage to partake in these high risk trading. The limitations to Governments
were that they could not spend what they wanted because the amount of currency in circulation had to correspond to the amount of gold in
reserve. President Nixon eliminated the gold standard in 1971. It was eliminated because the governments could not manipulate the
money supply if it was tied to gold. Once it was eliminated, governments could create as much "Fiat" money as they wanted in order to
conduct wars or any other big expenses. Fiat money is money that the government has declared to be legal tender even though it has no
actual value and is not backed by reserves. As a result, the currency in circulation today does not have to be backed up by anything. This is
why we see trillion dollar deficits today. Politicians can spend what they want regardless of the real economic downfalls that eventually
have to be dealt with. Nowadays, on a side note, foreign governments such as the Chinese and others finance our US debt. This means
most of debt the US government owns is owed to foreign investors. The answer to whether having gold standard is good or not is based on
whom you ask. Economists will have one

Essay on Investment and Certified Financial Planner
FP/101_r6 – Week Eight Quiz|
|
|
|1) Investing in the stock market is a good way to meet which of the following savings goals?||A.||A vacation next summer||B.||A new car
in 3 years||C.||College in 15 years||D.||A down payment on a house in 4 years|||2) What should you do if you don't want to spend a lot of
time managing your investments?||A.||Get out of the game. Successful investing requires time and attention. If you don't have the time to
devote to it, you shouldn't do it. ||B.||Invest in last year's best–performing mutual fund.||C.||Invest in an index fund or ETF that tracks the
entire stock market. ||D.||Invest in bond funds and other stable–value funds.|||3) When choosing a financial advisor, you should look for
one who is ... Show more content on Helpwriting.net ...
||C.||Invest in a sector fund that has been performing well in the current economy.||D.||Stop investing in your 401(k) and invest in index
funds in a taxable account.|||7) How should you adjust your retirement saving strategy if you are uncomfortable owning stocks?||A.||Invest
a modest amount each month in individual bonds and bond funds.||B.||Plan on saving even more each month than you would if you had
invested in stocks––or expect to live on less in retirement.||C.||Plan on retiring at age 80 or later.||D.||Invest in high–yield bonds with
maturities of 10 years or more.|||8) What happens to the price of bonds when interest rates go up? ||A.||It goes down ||B.||It goes
up.||C.||Nothing. Bond prices are unaffected by fluctuations in interest rates.||D.||It stays the same. Bond prices are determined by the
market dynamics of buying and selling.|||9) What one thing can have the biggest impact on a mutual fund's performance over time?||A.||Its
expense ratio ||B.||The track record of its manager||C.||The sales load you paid when you bought it ||D.||The amount of money it holds|||10)
Which of the following should you look for when evaluating mutual funds?||A.||A small, back–end load||B.||A small front–end load||C.||No
load and a low expense ratio||D.||A small front–end load and a low expense ratio|||11) Which of the following is characteristic of an
actively managed fund?||A.||It has one or more managers who decide what to buy and sell.

How To Protect Your Portfolio
Over the last few sessions, the S&P 500 (^GSPC) dropped more that 3%, causing some panic among investors who are wondering
whether this is the beginning of a bear market.
Conversing with fellow investors over the last few days, I often discouraged an extremist approach to investments, i.e. holding
uncompromising views of a security's rise or fall. Instead, I promote a more evolved approach that takes into account all the circumstances
(including risks), and then decides whether the security truly represents an investment–worthy candidate. In doing so, an investor prepares
himself for different outcomes, which helps him manage his risk more effectively.
Not only is it important to generate gains but also to protect them. In view of these fears, I decided to pen this piece to discuss a few ways
that would help investors cope with market uncertainties. While here are numerous ways to approach this, some of the most common
include buying protection in form of put options or inverse exchange traded fund (ETF).
The notion of purchasing protection is usually triggered by fear of one or more negative developments over the short term that will
adversely impact your portfolio. To begin with, it is important to recognize the fear for which you are considering the purchase of
protection: Are you fearful of a short–term volatility in the market? Are you expecting a correction in a stock's price?
Stock related fears
This is perhaps the greatest fear of a retail investor, who often

Global Fund Advisor Introduced Webs
Chapter 1 : Introduction: The idea of ETF was first perceived by NATHAN MOST in 1993. Nathan's first ETF was called SPARD (also
referred to as SPIDER) and it was first traded on the American stock exchange (AMEX) by state street GA. SPARD's only purpose is to
track the S&P 500. The number of ETFs that track different indexes all over the world exchange markets have increased significantly
since 1993. SPARD, as a first ETF, dominated the markets in the 1990s, together with CUBES, which was designed to track NASDAQ–
100. The ETF is a financial product, which has attracted a large number of financial product designers. The ETF as a creative idea has
opened a significant number of empty rooms on the exchange market, which needed to be filled with new ETF products. This is what
attracted the financial product designers to create different types of ETFs in the last 21 years. Barclays' global fund advisor introduced
WEBS (world equity benchmark shares) in 1996 as a first ETF to provide American investors with easy access to the forging markets.
They created a family of ETFs and each ETF had "ishares" as a first name and the index it followed as a second name (Ferri, 2002) . The
ETF influence could first be seen in Europe, when the German Deutsche bank presented an ETF linked to commodity in 2006 (Fuchita &
Yasuyuki, 2007). ETF Barclays continued to generate new EFT products by launching the first ETF linked to the bond price index in
2002. The ETF as a financial product on the

Finance -the Market Essay
Finance
1. How can changes in foreign exchange rates affect the profitability of financial institutions?
Foreign exchange rate determines the price exchange of two currencies. Changes in these rates affects the amount of goods and services
import and export of a country. When a country currency is stronger, it is now exchanged for more goods than before, and once the
currency is weaker, less of goods are purchased for the same amount of the currency. Financial institutions use the exchange rates changes
to decide whether to buy/sell financial assets such as bonds, stocks, etc. That means, they will buy and sell foreign assets to gain profit.
The value of these assets increases or decreases as the exchange rates change. If the dollar ... Show more content on Helpwriting.net ...
When the economy is expanding, the spin of money is faster where income of individuals and business increases, and so there's more
likelihood to spend money than before the expansion. For that reason, all stays equal, businesses would want to take advantage of this
condition, and would raise funds to pay for new investments, which will raise the supply of bonds in the market. At a similar rate, the
effect of the economy expansion (the increase in jobs, income, and savings of potential investors) on the demand for bond in the market
will be positive. More people can afford and are able to buy bonds for investments. Therefore, economy expansion increase demand and
supply of bonds. If excess of demand for bonds is over supply, the price of bond will increase due to insufficient supply, and so interest
rates will fall. If excess of supply of bonds is over demand, the price of bonds will fall and thus interest rate will rise.
5. Consider the decision to purchase either a 5–year corporate bond or a 5–year municipal bond. The corporate is a 12% annual coupon
bond with a par value of $1000. It is currently yielding 11.5%. The municipal bond has an 8.5% annual coupon and a par value of $1000.
It is currently yielding 7%.
Which of the two bonds would be more beneficial to you? Assume that your marginal tax rate is 35%.
Municipal bond:
PV=

Introduction Of The Foreign Exchange Market Essay
Introduction to the Foreign Exchange Market As the leading financial market in the world, the Foreign Exchange Market consists of
several types of financial institutions, such as, investors, such as, central banks, brokers, and investment firms. The Foreign Exchange
Market does not have an actual physical location; it is a worldwide system of computers. Currency traders are linked together from all
over the world by these computers. Once currency traders enter the network, the computers allow them to exchange currencies by
purchasing, selling, or speculating ("Foreign Exchange Markets – Forex – Investopedia Definition | Investopedia," n.d.). In the Foreign
Exchange Market, also called Forex Market, trillions of transactions are completed everyday. Within this market are the spot market and
forward market. Spot transactions take place in the spot market. A spot transaction occurs when one currency is traded for another
currency. These types of transactions are immediate, however it takes two business days for the bank to process this transaction due to
different time zones (Standard Bank, n.d.). Forward transactions occur in the forward market and are often called foreign exchange
contracts. Unlike spot transactions, forward market transactions are set to occur on a specified future date. The agreement and exchange
rate of the transaction is already determined, however, it will be traded at a future date, which is noted in the contract (Standard Bank,
n.d.). Many historical

Introduction Of The Foreign Exchange Market

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