1. Tulip mania – Tulip mania or tulipomania was a period in the Dutch Golden Age during which contract prices for bulbs of the recently introduced tulip reached extraordinarily high levels and then suddenly collapsed. At the peak of tulip mania, in March 1637, some single tulip bulbs sold for more than 10 times the income of a skilled craftsman. The term tulip mania is now often used metaphorically to refer to any large economic bubble when asset prices deviate from intrinsic values, the 1637 event was popularized in 1841 by the book Extraordinary Popular Delusions and the Madness of Crowds, written by British journalist Charles Mackay. According to Mackay, at one point 12 acres of land were offered for a Semper Augustus bulb, Mackay claims that many such investors were ruined by the fall in prices, and Dutch commerce suffered a severe shock. Although Mackays book is a classic, his account is contested, many modern scholars feel that the mania was not as extraordinary as Mackay described and argue that not enough price data are available to prove that a tulip bulb bubble actually occurred. Research is difficult because of the economic data from the 1630s—much of which come from biased. Some modern economists have proposed rational explanations, rather than a speculative mania, for the rise, for example, other flowers, such as the hyacinth, also had high initial prices at the time of their introduction, which immediately fell. The high asset prices may also have driven by expectations of a parliamentary decree that contracts could be voided for a small cost—thus lowering the risk to buyers. Tulip bulbs were soon distributed from Vienna to Augsburg, Antwerp and he planted his collection of tulip bulbs and found they were able to tolerate the harsher conditions of the Low Countries, shortly thereafter the tulip began to grow in popularity. The tulip was different from other flower known to Europe at that time. The appearance of the tulip as a status symbol at this time coincides with the rise of newly independent Hollands trade fortunes. No longer the Spanish Netherlands, its resources could now be channeled into commerce. Amsterdam merchants were at the center of the lucrative East Indies trade, as a result, tulips rapidly became a coveted luxury item, and a profusion of varieties followed. They were classified in groups, the tulips of red, yellow, or white were known as Couleren, the multicolored Rosen, Violetten, and the rarest of all. The multicolor effects of intricate lines and flame-like streaks on the petals were vivid and spectacular, growers named their new varieties with exalted titles. Many early forms were prefixed Admirael, often combined with the growers names, generael was another prefix used for around thirty varieties. Later varieties were given even more extravagant names, derived from Alexander the Great or Scipio, or even Admiral of Admirals, however, naming could be haphazard and varieties highly variable in quality. Most of these varieties have now died out, tulips grow from bulbs, and can be propagated through both seeds and budsTulip mania – A tulip, known as "the Viceroy" (viseroij), displayed in the 1637 Dutch catalog 'Verzameling van een Meenigte Tulipaanen'. Its bulb cost between 3,000 and 4,200 guilders (florins) depending on size (aase). A skilled craftsman at the time earned about 300 guilders a year.
2. Ambrosius Bosschaert – Ambrosius Bosschaert the Elder was a still life painter of the Dutch Golden Age. He was born in Antwerp, where he started his career, but he spent most of it in Middelburg and he specialized in painting still lifes with flowers, which he signed with the monogram AB. At the age of twenty-one, he joined the city’s Guild of Saint Luke, not long after, Bosschaert had married and established himself as a leading figure in the fashionable floral painting genre. He had three sons who all became painters, Ambrosius II, Johannes and Abraham. His brother-in-law Balthasar van der Ast also lived and worked in his workshop, Bosschaert later worked in Amsterdam, Bergen op Zoom, Utrecht, and Breda. In 1619 when he moved to Utrecht, his brother-in-law van der Ast entered the Utrecht Guild of St. Luke, the painter Roelandt Savery entered the St. Luke’s guild in Utrecht at about the same time. Savery had considerable influence on the Bosschaert dynasty, when Bosschaert died in The Hague while on commission there for a flower piece, Balthasar van der Ast took over running his workshop and pupils. His bouquets were painted symmetrically and with accuracy in small dimensions. They sometimes included symbolic and religious meanings, at the time of his death, Bosschaert was working on an important commission in the Hague. That piece is now in the collection in Stockholm, Bosschaert became one of the first artists to specialize in still life painting, and he started a tradition of painting detailed flower bouquets, which typically included tulips and roses. Thanks to the booming seventeenth-century Dutch art market, he highly successful. His sons and his pupil and brother-in-law, Balthasar van der Ast, were among those to uphold the Bosschaert dynasty which continued until the mid-17th century. It may not be a coincidence that this coincided with a national obsession with exotic flowers which made flower portraits highly sought after. Although he was highly in demand, he did not create many pieces because he was employed as an art dealer. Selected works Bosschaert de Oudere, Ambrosius, Ambrosius Bosschaert on Artnet A number of Ambrosius Bosschaerts paintingsAmbrosius Bosschaert – Still-Life of Flowers, 1614
3. Central bank – A central bank, reserve bank, or monetary authority is an institution that manages a states currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries, Central banks in most developed nations are institutionally designed to be independent from political interference. Still, limited control by the executive and legislative bodies usually exists, prior to the 17th century most money was commodity money, typically gold or silver. However, promises to pay were widely circulated and accepted as value at least five hundred years earlier in both Europe and Asia. The Song dynasty was the first to issue generally circulating paper currency, in 1455, in an effort to control inflation, the succeeding Ming Dynasty ended the use of paper money and closed much of Chinese trade. The Bank of Amsterdam, established in the Dutch Republic in 1609, is considered to be the forerunner to modern central banks. The Wisselbanks innovations helped lay the foundations for the birth and development of the banking system that now plays a vital role in the worlds economy. Along with a number of local banks, it performed many functions of a central banking system. Lucien Gillard calls it the European guilder, and Adam Smith devotes many pages to explaining how the bank guilder works, the model of the Wisselbank as a state bank was adapted throughout Europe, including the Bank of Sweden and the Bank of England. Established by Dutch-Latvian Johan Palmstruch in 1668, Sveriges Riksbank is often considered by many as the worlds oldest central bank, the lenders would give the government cash and also issue notes against the government bonds, which could be lent again. A Royal Charter was granted on 27 July through the passage of the Tonnage Act 1694, the bank was given exclusive possession of the governments balances, and was the only limited-liability corporation allowed to issue banknotes. The £1. 2M was raised in 12 days, half of this was used to rebuild the Navy and these modern central banking functions evolved slowly through the 18th and 19th centuries. The currency crisis of 1797, caused by panicked depositors withdrawing from the Bank led to the government suspending convertibility of notes into specie payment. The bank was accused by the bullionists of causing the exchange rate to fall from over issuing banknotes. Nevertheless, it was clear that the Bank was being treated as an organ of the state, henry Thornton, a merchant banker and monetary theorist has been described as the father of the modern central bank. An opponent of the real bills doctrine, he was a defender of the bullionist position, thorntons process of monetary expansion anticipated the theories of Knut Wicksell regarding the cumulative process which restates the Quantity Theory in a theoretically coherent form. Until the mid-nineteenth century, commercial banks were able to issue their own banknotes, many consider the origins of the central bank to lie with the passage of the Bank Charter Act of 1844. Under this law, authorisation to issue new banknotes was restricted to the Bank of England, at the same time, the Bank of England was restricted to issue new banknotes only if they were 100% backed by gold or up to £14 million in government debtCentral bank – Public finance
4. Corporation – A corporation is a company or group of people authorized to act as a single entity and recognized as such in law. Early incorporated entities were established by charter, most jurisdictions now allow the creation of new corporations through registration. Corporations chartered in regions where they are distinguished by whether they are allowed to be for profit or not are referred to as for profit and not-for-profit corporations, there is some overlap between stock/non-stock and for profit/not-for-profit in that not-for-profit corporations are always non-stock as well. A for profit corporation is almost always a stock corporation, registered corporations have legal personality and are owned by shareholders whose liability is limited to their investment. Shareholders do not typically actively manage a corporation, shareholders instead elect or appoint a board of directors to control the corporation in a fiduciary capacity, in American English, the word corporation is most often used to describe large business corporations. In British English and in the Commonwealth countries, the company is more widely used to describe the same sort of entity while the word corporation encompasses all incorporated entities. In American English, the company can include entities such as partnerships that would not be referred to as companies in British English as they are not a separate legal entity. Despite not being human beings, corporations, as far as the law is concerned, are legal persons. Corporations can exercise human rights against real individuals and the state, Corporations can be dissolved either by statutory operation, order of court, or voluntary action on the part of shareholders. Corporations can even be convicted of offenses, such as fraud. However, corporations are not considered living entities in the way humans are. While not a corporation, this new type of entity became very attractive as an alternative for corporations not needing to issue stock, in Germany, the organization was referred to as Gesellschaft mit beschränkter Haftung or GmbH. In the last quarter of the 20th Century this new form of organization became available in the United States and other countries. Since the GmbH and LLC forms of organization are technically not corporations they will not be discussed in this article, the word corporation derives from corpus, the Latin word for body, or a body of people. By the time of Justinian, Roman law recognized a range of corporate entities under the names universitas and these included the state itself, municipalities, and such private associations as sponsors of a religious cult, burial clubs, political groups, and guilds of craftsmen or traders. Such bodies commonly had the right to own property and make contracts, to receive gifts and legacies, to sue and be sued, private associations were granted designated privileges and liberties by the emperor. Entities which carried on business and were the subjects of rights were found in ancient Rome. In medieval Europe, churches became incorporated, as did local governments, such as the Pope, the point was that the incorporation would survive longer than the lives of any particular member, existing in perpetuityCorporation – McDonald's Corporation is one of the most recognizable corporations in the world.
5. Dutch West India Company – Dutch West India Company was a chartered company of Dutch merchants. Among its founding fathers was Willem Usselincx, the area where the company could operate consisted of West Africa and the Americas, which included the Pacific Ocean and the eastern part of New Guinea. The intended purpose of the charter was to eliminate competition, particularly Spanish or Portuguese, the company became instrumental in the Dutch colonization of the Americas. When the Dutch East India Company was founded in 1602, some traders in Amsterdam did not agree with its monopolistic politics, however, he failed to find a passage. One of the first sailors who focused on trade with Africa was Balthazar de Moucheron, the trade with Africa offered several possibilities to set up trading posts or factories, an important starting point for negotiations. It was Blommaert, however, who stated that in 1600 eight companies sailed on the coast of Africa, competing with each other for the supply of copper, pieter van den Broecke was employed by one of these companies. In 1612, a Dutch fortress was built in Mouree, along the Dutch Gold Coast, Trade with the Caribbean, for salt, sugar and tobacco, was hampered by Spain and delayed because of peace negotiations. Spain offered peace on condition that the Dutch Republic would withdraw from trading with Asia, Spain refused to sign the peace treaty if a West Indian Company would be established. At this time the Dutch War of Independence between Spain and the Dutch Republic was occurring, grand Pensionary Johan van Oldenbarnevelt offered to only suspend trade with the West in exchange for the Twelve Years Truce. The result was that during a few years the company sailed under a flag in South America. However, ten years later, Stadtholder Maurice of Orange, proposed to continue the war with Spain, in 1619, his opponent Johan van Oldenbarnevelt was beheaded, and when two years later the truce expired, the West Indian Company was established. Some historians date the origins of the firm to the 1500s with arrivals of settlers in what is now called New York long before the English at Jamestown. The WIC was organized similarly to the Dutch East India Company, the board consisted of 19 members, known as the Heeren XIX. The validity of the charter was set at 24 years, only in 1623 was funding arranged, after several bidders were put under pressure. The States General of the Netherlands and the VOC pledged one million guilders in the form of capital, unlike the VOC, the WIC had no right to deploy military troops. When the Twelve Years Truce in 1621 was over, the Republic had a hand to re-wage war with Spain. A Groot Desseyn was devised to seize the Portuguese colonies in Africa, when this plan failed, privateering became one of the major goals within the WIC. The arming of merchant ships with guns and soldiers to defend themselves against Spanish ships was of great importance, on almost all ships in 1623,40 to 50 soldiers were stationed, possibly to assist in the hijacking of enemy shipsDutch West India Company – The West India House on the Herenmarkt in Amsterdam, headquarters of the WIC from 1623 to 1647
6. History of the Netherlands – The history of the Netherlands is the history of seafaring people thriving on a lowland river delta on the North Sea in northwestern Europe. Records begin with the four centuries during which the region formed a border zone of the Roman empire. This came under increasing pressure from Germanic peoples moving westwards, during the Middle Ages, the descendants of the Carolingian dynasty came to dominate the area and then extended their rule to a large part of Western Europe. The region of the Netherlands therefore became part of Lower Lotharingia within the Frankish Holy Roman Empire, for several centuries, lordships such as Brabant, Holland, Zeeland, Friesland, Guelders and others held a changing patchwork of territories. There was no unified equivalent of the modern Netherlands, the Catholic kings of Spain took strong measures against Protestantism, which polarized the peoples of present-day Belgium and Holland. In the Dutch Golden Age, which had its zenith around 1667, there was a flowering of trade, industry, the arts and the sciences. A rich worldwide Dutch empire developed and the Dutch East India Company became one of the earliest and most important of national companies based on entrepreneurship. During the 18th century the power and wealth of the Netherlands declined, a series of wars with the more powerful British and French neighbors weakened it. Britain seized the North American colony of New Amsterdam, turning it into New York, there was growing unrest and conflict between the Orangists and the Patriots. The French Revolution spilled over after 1789, and a pro-French Batavian Republic was established in 1795–1806, Napoleon made it a satellite state, the Kingdom of Holland, and later simply a French imperial province. After the collapse of Napoleon in 1813–15, an expanded United Kingdom of the Netherlands was created with the House of Orange as monarchs, also ruling Belgium, the King imposed unpopular Protestant reforms on Belgium, which revolted in 1830 and became independent in 1839. After an initially conservative period, in the 1848 constitution the country became a democracy with a constitutional monarch. Modern Luxembourg became officially independent from the Netherlands in 1839, but a personal union remained until 1890, since 1890 it is ruled by another branch of the House of Nassau. The Netherlands was neutral during the First World War, but during the Second World War, the Nazis, including many collaborators, rounded up and killed almost all the Jews. When the Dutch resistance increased, the Nazis cut off supplies to much of the country. In 1942, the Dutch East Indies was conquered by Japan, Indonesia proclaimed its independence in 1945. The postwar years saw rapid economic recovery, followed by the introduction of a state during an era of peace. The Netherlands formed a new alliance with Belgium and Luxembourg, the BeneluxHistory of the Netherlands – The Netherlands in 5500 BC
7. Netherlands – The Netherlands is the main constituent country of the Kingdom of the Netherlands. It is a densely populated country located in Western Europe with three territories in the Caribbean. The European part of the Netherlands borders Germany to the east, Belgium to the south, and the North Sea to the northwest, sharing borders with Belgium, the United Kingdom. The three largest cities in the Netherlands are Amsterdam, Rotterdam and The Hague, Amsterdam is the countrys capital, while The Hague holds the Dutch seat of parliament and government. The port of Rotterdam is the worlds largest port outside East-Asia, the name Holland is used informally to refer to the whole of the country of the Netherlands. Netherlands literally means lower countries, influenced by its low land and flat geography, most of the areas below sea level are artificial. Since the late 16th century, large areas have been reclaimed from the sea and lakes, with a population density of 412 people per km2 –507 if water is excluded – the Netherlands is classified as a very densely populated country. Only Bangladesh, South Korea, and Taiwan have both a population and higher population density. Nevertheless, the Netherlands is the worlds second-largest exporter of food and agricultural products and this is partly due to the fertility of the soil and the mild climate. In 2001, it became the worlds first country to legalise same-sex marriage, the Netherlands is a founding member of the EU, Eurozone, G-10, NATO, OECD and WTO, as well as being a part of the Schengen Area and the trilateral Benelux Union. The first four are situated in The Hague, as is the EUs criminal intelligence agency Europol and this has led to the city being dubbed the worlds legal capital. The country also ranks second highest in the worlds 2016 Press Freedom Index, the Netherlands has a market-based mixed economy, ranking 17th of 177 countries according to the Index of Economic Freedom. It had the thirteenth-highest per capita income in the world in 2013 according to the International Monetary Fund, in 2013, the United Nations World Happiness Report ranked the Netherlands as the seventh-happiest country in the world, reflecting its high quality of life. The Netherlands also ranks joint second highest in the Inequality-adjusted Human Development Index, the region called Low Countries and the country of the Netherlands have the same toponymy. Place names with Neder, Nieder, Nether and Nedre and Bas or Inferior are in use in all over Europe. They are sometimes used in a relation to a higher ground that consecutively is indicated as Upper, Boven, Oben. In the case of the Low Countries / the Netherlands the geographical location of the region has been more or less downstream. The geographical location of the region, however, changed over time tremendouslyNetherlands – The Netherlands in 5500 BC
8. Stock exchange – A stock exchange or bourse is an exchange where stock brokers and traders can buy and/or sell stocks, bonds, and other securities. Stock exchanges may also provide facilities for issue and redemption of securities and other financial instruments, Securities traded on a stock exchange include stock issued by listed companies, unit trusts, derivatives, pooled investment products and bonds. Stock exchanges often function as continuous auction markets, with buyers and sellers consummating transactions at a central location, to be able to trade a security on a certain stock exchange, it must be listed there. Trade on an exchange is restricted to brokers who are members of the exchange, the initial public offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market, supply and demand in stock markets are driven by various factors that, as in all free markets, affect the price of stocks. There is usually no obligation for stock to be issued via the exchange itself. Such trading may be off exchange or over-the-counter and this is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are part of a securities market. The idea of debt dates back to the ancient world, as evidenced for example by ancient Mesopotamian clay tablets recording interest-bearing loans, there is little consensus among scholars as to when corporate stock was first traded. Some see the key event as the Dutch East India Companys founding in 1602, economist Ulrike Malmendier of the University of California at Berkeley argues that a share market existed as far back as ancient Rome. One such service was the feeding of geese on the Capitoline Hill as a reward to the birds after their honking warned of a Gallic invasion in 390 B. C. Participants in such organizations had partes or shares, a concept mentioned various times by the statesman, in one speech, Cicero mentions shares that had a very high price at the time. Such evidence, in Malmendiers view, suggests the instruments were tradable, the societas declined into obscurity in the time of the emperors, as most of their services were taken over by direct agents of the state. Tradable bonds as a used type of security were a more recent innovation, spearheaded by the Italian city-states of the late medieval. While the Italian city-states produced the first transferable government bonds, they did not develop the other ingredient necessary to produce a fully fledged capital market, the Dutch East India Company became the first company to offer shares of stock. Control of the company was held tightly by its directors, with shareholders not having much influence on management or even access to the companys accounting statements. However, shareholders were rewarded well for their investment, the company paid an average dividend of over 16 percent per year from 1602 to 1650. Financial innovation in Amsterdam took many forms, by the 1620s, the company was expanding its securities issuance with the first use of corporate bondsStock exchange – The New York Stock Exchange on Wall Street in New York City, the world's largest stock exchange per total market capitalization of its listed companies.
9. Dividend – A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business and pay a proportion of the profit as a dividend to shareholders. Distribution to shareholders may be in cash or, if the corporation has a dividend reinvestment plan, a dividend is allocated as a fixed amount per share, with shareholders receiving a dividend in proportion to their shareholding. For the joint-stock company, paying dividends is not an expense, rather, retained earnings are shown in the shareholders equity section on the companys balance sheet – the same as its issued share capital. Public companies usually pay dividends on a schedule, but may declare a dividend at any time. Cooperatives, on the hand, allocate dividends according to members activity. The word dividend comes from the Latin word dividendum, Cash dividends are the most common form of payment and are paid out in currency, usually via electronic funds transfer or a printed paper check. Such dividends are a form of investment income and are taxable to the recipient in the year they are paid. This is the most common method of sharing corporate profits with the shareholders of the company, for each share owned, a declared amount of money is distributed. Thus, if a person owns 100 shares and the dividend is 50 cents per share. Dividends paid are not classified as an expense, but rather a deduction of retained earnings, Dividends paid does not show up on an income statement but does appear on the balance sheet. Stock or scrip dividends are paid out in the form of additional stock shares of the issuing corporation. They are usually issued in proportion to shares owned, Stock dividend distributions are issues of new shares made to limited partners by a partnership in the form of additional shares. Nothing is split, these increase the market capitalization and total value of the company at the same time reducing the original cost basis per share. Stock dividends are not includable in the income of the shareholder for US income tax purposes. Because the shares are issued for proceeds equal to the market price of the shares. Property dividends or dividends in specie are those out in the form of assets from the issuing corporation or another corporation. They are relatively rare and most frequently are securities of companies owned by the issuer, however they can take other forms, such as productsDividend – Accounting
10. Dutch East India Company – It is often considered to be the worlds first truly transnational corporation and the first company in history to actually issue bonds and shares of stock to the general public. In other words, the VOC was officially the first publicly traded company of the world, the company was also considered by many to be the very first major and the greatest corporation in history. Statistically, the VOC eclipsed all of its rivals in international trade for almost 200 years of existence. Between 1602 and 1796 the VOC sent almost a million Europeans to work in the Asia trade on 4,785 ships, the VOC enjoyed huge profits from its spice monopoly through most of the 17th century. Having been set up in 1602, to profit from the Malukan spice trade, in 1619 the VOC established a capital in the city of Jayakarta. Over the next two centuries the Company acquired additional ports as trading bases and safeguarded their interests by taking over surrounding territory and it remained an important trading concern and paid an 18% annual dividend for almost 200 years. Around the world and especially in English-speaking countries, the VOC is widely known as the Dutch East India Company, the name ‘Dutch East India Company’ is used to make a distinction with the East India Company and other East Indian companies. The abbreviation VOC stands for Vereenigde Oost-Indische Compagnie or Verenigde Oostindische Compagnie in Dutch, the VOC monogram was possibly the first globally-recognized corporate logo. The logo of the VOC consisted of a large capital V with an O on the left and it appeared on various corporate items, such as cannon and coins. The first letter of the hometown of the conducting the operation was placed on top. An Australian vintner has used the VOC logo since the late 20th century, the flag of the company was orange, white, and blue, with the company logo embroidered on it. Before the Dutch Revolt, Antwerp had played an important role as a centre in northern Europe. At the same time, the Portuguese trade system was unable to supply to satisfy growing demand. Demand for spices was relatively inelastic, and therefore each lag in the supply of pepper caused a rise in pepper prices. These three factors motivated Dutch merchants to enter the spice trade themselves. Further, a number of Dutchmen like Jan Huyghen van Linschoten and Cornelis de Houtman obtained first hand knowledge of the secret Portuguese trade routes and practices, thereby providing opportunity. The stage was set for Houtmans 1595 four-ship exploratory expedition to Banten, the main pepper port of West Java. Houtmans expedition then sailed east along the north coast of Java, losing twelve crew to a Javanese attack at Sidayu, half the crew were lost before the expedition made it back to the Netherlands the following year, but with enough spices to make a considerable profitDutch East India Company – The shipyard of the Dutch East India Company in Amsterdam. 1726 engraving by Joseph Mulder.
11. Ponzi scheme – Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. Ponzi schemes occasionally begin as legitimate businesses, until the business fails to achieve the returns expected, the business becomes a Ponzi scheme if it then continues under fraudulent terms. Whatever the initial situation, the perpetuation of the high returns requires a flow of money from new investors to sustain the scheme. The scheme is named after Charles Ponzi, who became notorious for using the technique in 1920. The idea, present in novels, was performed in real life by Ponzi who with his operation took in so much money that it was the first to become known throughout the United States. Ponzis original scheme was based on the arbitrage of international reply coupons for postage stamps, however, he soon diverted investors money to make payments to earlier investors, Ponzi schemes sometimes commence operations as legitimate investment vehicles, such as hedge funds. A wide variety of investment vehicles or strategies, typically legitimate, have become the basis of Ponzi schemes, for instance, Allen Stanford used bank certificates of deposit to defraud tens of thousands of people. Certificates of deposit are usually low-risk and insured instruments, but the Stanford CDs were fraudulent, initially the promoter will pay out high returns to attract more investors, and to lure current investors into putting in additional money. Other investors begin to participate, leading to a cascade effect, the return to the initial investors is paid out of the investments of new entrants, rather than solely from profits. This maintains the deception that the scheme is an investment with high returns, promoters also try to minimize withdrawals by offering new plans to investors, often where money is frozen for a longer period of time, in exchange for higher returns. The promoter sees new cash flows as investors are told they cannot transfer money from the first plan to the second. When a Ponzi scheme is not stopped by the authorities, it sooner or later falls apart for one of the reasons, The promoter vanishes. Such liquidity crises often trigger panics, as people start asking for their money. External market forces, such as a decline in the economy. However, several characteristics distinguish these schemes from Ponzi schemes, In a Ponzi scheme, in a pyramid scheme, those who recruit additional participants benefit directly. A pyramid scheme typically collapses much faster because it requires exponential increases in participants to sustain it, by contrast, Ponzi schemes can survive simply by persuading most existing participants to reinvest their money, with a relatively small number of new participants. An economic bubble, A bubble is similar to a Ponzi scheme in that one participant gets paid by contributions from a subsequent participant, a bubble involves ever-rising prices in an open market where prices rise because buyers bid more and buyers bid more because prices are rising. Bubbles are often said to be based on the greater fool theory, as with the Ponzi scheme, the price exceeds the intrinsic value of the item, but unlike the Ponzi scheme, there is no single person misrepresenting the intrinsic valuePonzi scheme – 1920 photo of Charles Ponzi, the namesake of the scheme, while still working as a businessman in his office in Boston
12. Stock market – Examples of the latter include shares of private companies which are sold to investors through equity crowdfunding platforms. Stock exchanges list shares of equity as well as other security types, e. g. corporate bonds. Stocks can be categorised in various way, one way is by the country where the company is domiciled. S. At the close of 2012, the size of the stock market was about US$55 trillion. By country, the largest market was the United States, followed by Japan, as of 2015, there are a total of 60 stock exchanges in the world with a total market capitalization of $69 trillion. Of these, there are 16 exchanges with a capitalization of $1 trillion or more. Apart from the Australian Securities Exchange, these 16 exchanges are based in one of three continents, North America, Europe and Asia, a stock exchange is a place where, or an organization through which, individuals and organisations can trade stocks. Many large companies have their stock listed on a stock exchange and this makes the stock more liquid and thus more attractive to many investors. It may also act as a guarantor of settlement, other stocks may be traded over the counter, that is, through a dealer. Some large companies will have their stock listed on more than one exchange in different countries, Stock exchanges may also cover other types of securities, such as fixed interest securities or derivatives, which are more likely to be traded OTC. Trade in stock markets means the transfer for money of a stock or security from a seller to a buyer and this requires these two parties to agree on a price. Equities confer an ownership interest in a particular company and their buy or sell orders may be executed on their behalf by a stock exchange trader. Some exchanges are physical locations where transactions are carried out on a trading floor and this method is used in some stock exchanges and commodity exchanges, and involves traders shouting bid and offer prices. The other type of exchange has a network of computers where trades are made electronically. An example of such an exchange is the NASDAQ, a potential buyer bids a specific price for a stock, and a potential seller asks a specific price for the same stock. Buying or selling at the means you will accept any ask price or bid price for the stock. When the bid and ask prices match, a sale takes place, on a first-come, the purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a marketplace. The exchanges provide real-time trading information on the securities, facilitating price discoveryStock market – Financial markets
13. Stock market crash – A stock market crash is a sudden dramatic decline of stock prices across a significant cross-section of a stock market, resulting in a significant loss of paper wealth. Crashes are driven by panic as much as by underlying economic factors and they often follow speculative stock market bubbles. There is no specific definition of a stock market crash. Crashes are often distinguished from bear markets by selling and abrupt. Bear markets are periods of declining stock prices that are measured in months or years. Crashes are often associated with bear markets, however, they do not necessarily go hand in hand, the crash of 1987, for example, did not lead to a bear market. Likewise, the Japanese bear market of the 1990s occurred over several years without any notable crashes, the mathematical description of stock market movements has been a subject of intense interest. The conventional assumption has been that stock markets behave according to a random log-normal distribution, among others, mathematician Benoît Mandelbrot suggested as early as 1963 that the statistics prove this assumption incorrect. Mandelbrot observed that large movements in prices are more common than would be predicted from a log-normal distribution. Mandelbrot and others suggested that the nature of market moves is generally much better explained using non-linear analysis and this has been expressed in non-mathematical terms by George Soros in his discussions of what he calls reflexivity of markets and their non-linear movement. George Soros said in late October 1987, Mr. Robert Prechters reversal proved to be the crack that started the avalanche, research at the Massachusetts Institute of Technology suggests that there is evidence the frequency of stock market crashes follows an inverse cubic power law. This and other such as Prof. Didier Sornettes work suggest that stock market crashes are a sign of self-organized criticality in financial markets. In 1963, Mandelbrot proposed that instead of following a random walk. A Lévy flight is a walk that is occasionally disrupted by large movements. In 1995, Rosario Mantegna and Gene Stanley analyzed a million records of the S&P500 market index, researchers continue to study this theory, particularly using computer simulation of crowd behaviour, and the applicability of models to reproduce crash-like phenomena. Research at the New England Complex Systems Institute has found warning signs of crashes using new statistical tools of complexity theory. This work suggests that the panics that lead to come from increased mimicry in the market. A dramatic increase in market mimicry occurred during the year before each market crash of the past 25 yearsStock market crash – Crowd gathering on Wall Street the day after the 1929 crash.
14. Stock market bubble – A stock market bubble is a type of economic bubble taking place in stock markets when market participants drive stock prices above their value in relation to some system of stock valuation. Behavioral finance theory attributes stock market bubbles to cognitive biases that lead to groupthink, bubbles occur not only in real-world markets, with their inherent uncertainty and noise, but also in highly predictable experimental markets. Other theoretical explanations of stock market bubbles have suggested that they are rational, intrinsic, two famous early stock market bubbles were the Mississippi Scheme in France and the South Sea bubble in England. Both bubbles came to an end in 1720, bankrupting thousands of unfortunate investors. Those stories, and many others, are recounted in Charles Mackays 1841 popular account, Extraordinary Popular Delusions, the 1920s saw the widespread introduction of an amazing range of technological innovations including radio, automobiles, aviation and the deployment of electrical power grids. The 1990s was the decade when Internet and e-commerce technologies emerged, stock market bubbles frequently produce hot markets in initial public offerings, since investment bankers and their clients see opportunities to float new stock issues at inflated prices. These hot IPO markets misallocate investment funds to areas dictated by speculative trends, emotional and cognitive biases seem to be the causes of bubbles, but often, when the phenomenon appears, pundits try to find a rationale, so as not to be against the crowd. Thus, sometimes, people will dismiss concerns about overpriced markets by citing a new economy where the old stock valuation rules may no longer apply and this type of thinking helps to further propagate the bubble whereby everyone is investing with the intent of finding a greater fool. Still, some cite the wisdom of crowds and say that price movements really do reflect rational expectations of fundamental returns. Large traders become powerful enough to rock the boat, generating stock market bubbles, the bubble in closed-end country funds in the late 1980s is instructive here, as are the bubbles that occur in experimental asset markets. According to the hypothesis, this doesnt happen, and so any data is wrong. For closed-end country funds, observers can compare the prices to the net asset value per share. For experimental asset markets, observers can compare the prices to the expected returns from holding the stock. In both instances, closed-end country funds and experimental markets, stock prices clearly diverge from fundamental values. Nobel laureate Dr. Vernon Smith has illustrated the closed-end country fund phenomenon with a chart showing prices, at its peak, the Spain Fund traded near $35, nearly triple its Net Asset Value of about $12 per share. It only took a few months for the premiums in closed-end country funds to back to the more typical discounts at which closed-end funds trade. Those who had them at premiums had run out of greater fools. For a while, though, the supply of greater fools had been outstanding, a rising price on any share will attract the attention of investorsStock market bubble
15. Speculation – Speculation is the purchase of an asset with the hope that it will become more valuable at a future date. Many speculators pay little attention to the value of a security. Speculation can in principle involve any tradable good or financial instrument, Speculators are particularly common in the markets for stocks, bonds, commodity futures, currencies, fine art, collectibles, real estate, and derivatives. The number of shareholders increased, perhaps, from 4.4 million in 1900 to 26 million in 1932, the view of what distinguishes investment from speculation and speculation from excessive speculation varies widely among pundits, legislators and academics. Some sources note that speculation is simply a higher form of investment. Others define speculation more narrowly as positions not characterized as hedging, the agency emphasizes that speculators serve important market functions, but defines excessive speculation as harmful to the proper functioning of futures markets. According to Ben Graham in The Intelligent Investor, the prototypical defensive investor is. one interested chiefly in safety plus freedom from bother, Speculation is condemned on ethical-moral grounds as creating money from money and thereby promoting the vices of avarice and gambling. When a harvest is too small to satisfy consumption at its rate, speculators come in. Their purchases raise the price, thereby checking consumption so that the supply will last longer. Producers encouraged by the price further lessen the shortage by growing or importing to reduce the shortage. On the other side, when the price is higher than the speculators think the facts warrant and this reduces prices, encouraging consumption and exports and helping to reduce the surplus. If any market, such as pork bellies, had no speculators, with fewer players in the market, there would be a larger spread between the current bid and ask price of pork bellies. By contrast, a commodity speculator may profit the difference in the spread and, in competition with other speculators, some schools of thought argue that speculators increase the liquidity in a market, and therefore promote an efficient market. This efficiency is difficult to achieve without speculators, a very beneficial by-product of speculation for the economy is price discovery. On the other hand, as more speculators participate in a market, underlying real demand and supply can diminish compared to trading volume, Speculators also perform a very important risk bearing role that is beneficial to society. For example, a farmer might be considering planting corn on some unused farmland, however, he might not want to do so because he is concerned that the price might fall too far by harvest time. By selling his crop in advance at a price to a speculator, he is now able to hedge the price risk. Thus, speculators can actually increase production through their willingness to take on risk, hence, they make the prices better reflect the true quality of operation of the firmsSpeculation – Financial market participants
16. Haarlem – Haarlem is a city and municipality in the Netherlands. It is the capital of the province of North Holland and is situated at the edge of the Randstad. Haarlem had a population of 155,758 in 2014 and it is a 15-minute train ride from Amsterdam, and many residents commute to the countrys capital for work. Haarlem was granted city status or stadsrechten in 1245, although the first city walls were not built until 1270, the modern city encompasses the former municipality of Schoten as well as parts that previously belonged to Bloemendaal and Heemstede. Apart from the city, the municipality of Haarlem also includes the part of the village of Spaarndam. Newer sections of Spaarndam lie within the municipality of Haarlemmerliede en Spaarnwoude. The city is located on the river Spaarne, about 20 km west of Amsterdam and it has been the historical centre of the tulip bulb-growing district for centuries and bears the nickname Bloemenstad, for this reason. Haarlem has a history dating back to pre-medieval times, as it lies on a thin strip of land above sea level known as the strandwal. The people on this strip of land struggled against the waters of the North Sea from the west, and the waters of the IJ. Haarlem became wealthy with toll revenues that it collected from ships, however, as shipping became increasingly important economically, the city of Amsterdam became the main Dutch city of North Holland during the Dutch Golden Age. The town of Halfweg became a suburb, and Haarlem became a bedroom community. Nowadays many of them are on the Dutch Heritage register known as Rijksmonuments, the list of Rijksmonuments in Haarlem gives an overview of these per neighbourhood, with the majority in the old city centre. The oldest mentioning of Haarlem dates from the 10th century, the name probably comes from Haarlo-heim. This name is composed of three elements, haar, lo and heim, there is not much dispute about the meaning of lo and heim, in Old Dutch toponyms lo always refers to forest and heim to home or house. Haar, however, has several meanings, one of them corresponding with the location of Haarlem on a sand dune, the name Haarlem or Haarloheim would therefore mean home on a forested dune. There was a stream called De Beek, dug from the peat grounds west of the river Spaarne as a drainage canal, over the centuries the Beek was turned into an underground canal, as the city grew larger and the space was needed for construction. Over time it began to silt up and in the 19th century it was filled in, the location of the village was a good one, by the river Spaarne, and by a major road going south to north. By the 12th century it was a town, and Haarlem became the residence of the Counts of HollandHaarlem – Grote Kerk ("Great Church") on the Grote Markt, Haarlem's central square
17. Initial public offering – Through this process, a privately held company transforms into a public company. Initial public offerings are used by companies to raise the expansion of capital, possibly to monetize the investments of early private investors. A company selling shares is never required to repay the capital to its public investors, after the IPO, when shares trade freely in the open market, money passes between public investors. The IPO process is known as going public. Details of the offering are disclosed to potential purchasers in the form of a lengthy document known as a prospectus. Most companies undertake an IPO with the assistance of an investment banking firm acting in the capacity of an underwriter, underwriters provide several services, including help with correctly assessing the value of shares and establishing a public market for shares. Alternative methods such as the dutch auction have also been explored, in terms of size and public participation, the two most notable examples of this method is the Google IPO and Snapchats parent company Snap Inc. China has recently emerged as a major IPO market, with several of the largest IPOs taking place in that country, the earliest form of a company which issued public shares was the case of the publicani during the Roman Republic. Like modern joint-stock companies, the publicani were legal bodies independent of their members whose ownership was divided into shares, there is evidence that these shares were sold to public investors and traded in a type of over-the-counter market in the Forum, near the Temple of Castor and Pollux. The shares fluctuated in value, encouraging the activity of speculators, mere evidence remains of the prices for which partes were sold, the nature of initial public offerings, or a description of stock market behavior. Publicanis lost favor with the fall of the Republic and the rise of the Empire, the first modern IPO occurred in March 1602 when the Dutch East India Company offered shares of the company to the public in order to raise capital. All the shares were tradable, and the shareholders received receipts for the purchase, a share certificate documenting payment and ownership such as we know today was not issued but ownership was instead entered in the companys share register. In the United States, the first IPO was the offering of Bank of North America around 1783. An IPO, therefore, allows a company to tap into a pool of potential investors to provide itself with capital for future growth, repayment of debt. A company selling shares is never required to repay the capital to its public investors. Those investors must endure the unpredictable nature of the market to price. After the IPO, when shares trade freely in the open market, for early private investors who choose to sell shares as part of the IPO process, the IPO represents an opportunity to monetize their investment. This type of offering is not dilutive, since no new shares are being created, once a company is listed, it is able to issue additional common shares in a number of different ways, one of which is the follow-on offeringInitial public offering – Capital structure
18. South Sea Company – The South Sea Company was a British joint-stock company founded in 1711, created as a public-private partnership to consolidate and reduce the cost of national debt. The company was granted a monopoly to trade with South America. At the time it was created, Britain was involved in the War of the Spanish Succession, there was no realistic prospect that trade would take place and the company never realised any significant profit from its monopoly. The Bubble Act 1720, which forbade the creation of joint-stock companies without royal charter, was promoted by the South Sea company itself before its collapse. In Great Britain, a number of people were ruined by the share collapse. The founders of the scheme engaged in trading, using their advance knowledge of when national debt was to be consolidated to make large profits from purchasing debt in advance. Huge bribes were given to politicians to support the Acts of Parliament necessary for the scheme, Company money was used to deal in its own shares, and selected individuals purchasing shares were given loans backed by those same shares to spend on purchasing more shares. The expectation of vast wealth from trade with South America was used to encourage the public to purchase shares, the only significant trade that did take place was in slaves, but the company failed to manage this profitably. A parliamentary enquiry was held after the crash to discover its causes, a number of politicians were disgraced, and people found to have profited unlawfully from the company had assets confiscated proportionate to their gains. The company was restructured and continued to operate for more than a century after the Bubble, the headquarters were in Threadneedle Street at the centre of the financial district in London, today the Bank of England has headquarters on Threadneedle Street. At the time of events the Bank of England also was a private company dealing in national debt. In August 1710 Robert Harley was appointed Chancellor of the Exchequer in a government of commission, the government at this time had become reliant on the Bank of England. This was a privately owned company, chartered 16 years previously, the government had become dissatisfied with the service it was receiving and Harley was actively seeking new ways to improve the national finances. The committee included Harley himself, the two Auditors of the Imprests, whose task was to investigate government spending, Harleys brother Edward, Harleys first concern was to find £300,000 for the next quarters pay for the British army operating in Europe under Marlborough. This was provided by a consortium of Edward Gibbon, George Caswall. The Bank of England had been operating a state lottery on behalf of the government, but this had not been successful in 1710. This too was performing poorly, so Harley granted authority to sell tickets to John Blunt, a director of the Hollow Sword Blade Company, with sales commencing on 3 March 1711, tickets had completely sold out by the 7th. This was the first truly successful English state lottery, marketing was handled by members of the Sword Blade syndicate, Gibbon selling £200,000 of tickets and earning £4,500 commission, and Blunt selling £993,000South Sea Company – Hogarthian image of the 1720 "South Sea Bubble" from the mid-19th century, by Edward Matthew Ward, Tate Gallery
19. Technical analysis – In finance, technical analysis is a security analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. The efficacy of both technical and fundamental analysis is disputed by the efficient-market hypothesis which states that market prices are essentially unpredictable. The principles of analysis are derived from hundreds of years of financial market data. Some aspects of technical analysis began to appear in Joseph de la Vegas accounts of the Dutch markets in the 17th century. In 1948 Robert D. Edwards and John Magee published Technical Analysis of Stock Trends which is considered to be one of the seminal works of the discipline. It is exclusively concerned with analysis and chart patterns and remains in use to the present. Early technical analysis was almost exclusively the analysis of charts, because the power of computers was not available for the modern degree of statistical analysis. Charles Dow reportedly originated a form of point and figure chart analysis, Dow theory is based on the collected writings of Dow Jones co-founder and editor Charles Dow, and inspired the use and development of modern technical analysis at the end of the 19th century. Other pioneers of analysis techniques include Ralph Nelson Elliott, William Delbert Gann, more technical tools and theories have been developed and enhanced in recent decades, with an increasing emphasis on computer-assisted techniques using specially designed computer software. Fundamental analysts examine earnings, dividends, assets, quality, ratio, new products, research, Technicians employ many methods, tools and techniques as well, one of which is the use of charts. Using charts, technical analysts seek to identify patterns and market trends in financial markets. Technical analysts also widely use market indicators of many sorts, some of which are mathematical transformations of price, often including up and down volume, advance/decline data and other inputs. These indicators are used to assess whether an asset is trending, and if it is. Technicians also look for relationships between price/volume indices and market indicators, examples include the moving average, relative strength index, and MACD. Other avenues of study include correlations between changes in Options and put/call ratios with price, also important are sentiment indicators such as Put/Call ratios, bull/bear ratios, short interest, Implied Volatility, etc. There are many techniques in technical analysis, adherents of different techniques may ignore the other approaches, yet many traders combine elements from more than one technique. Some technical analysts use subjective judgment to decide which pattern a particular instrument reflects at a given time, others employ a strictly mechanical or systematic approach to pattern identification and interpretation. Contrasting with technical analysis is fundamental analysis, the study of factors that influence the way investors price financial marketsTechnical analysis – Financial markets
20. Short (finance) – In finance, short selling is the practice of selling securities or other financial instruments that are not currently owned, and subsequently repurchasing them. In the event of a price decline, the short seller profits. Conversely, the short position closes out at a if the price of a shorted instrument rises prior to repurchase. Potential loss on a sale is theoretically unlimited, as there is no theoretical limit to a rise in the price of the instrument. In the securities markets, the seller generally must borrow the securities to effect delivery in the short sale. In practical terms, going short can be considered the opposite of the practice of going long. Mathematically, the return from a position is equivalent to that of owning a negative amount of the instrument. A short sale may have a variety of objectives, traders or fund managers may hedge a long position or a portfolio through one or more short positions. In contrast to a merchant who starts out to buy low, sell high. Although some feel that short selling is morally wrong, research indicates that banning short selling is ineffective and has effects on markets. The following example describes the sale of a security. To profit from a decrease in the price of a security, when the seller decides that the time is right, the seller buys equivalent securities and returns them to the lender. In most market conditions there is a supply of securities to be borrowed, held by pension funds, mutual funds. The act of buying back the securities that were sold short is called covering the short or covering the position, a short position can be covered at any time before the securities are due to be returned. Once the position is covered, the seller is not affected by subsequent rises or falls in the price of the securities. Short selling refers broadly to any used by an investor to profit from the decline in price of a borrowed asset or financial instrument. Derivatives contracts include futures, options, and swaps, shares in ACME Inc. currently trade at $10 per share. A short seller investor borrows from a lender 100 shares of ACME Inc. subsequently, the price of the shares falls to $8 per shareShort (finance) – Securities
21. Economic bubble – An economic bubble or asset bubble is trade in an asset at a price or price range that strongly deviates from the corresponding assets intrinsic value. It could also be described as a situation in which asset prices appear to be based on implausible or inconsistent views about the future, Asset bubbles date back as far as the 1600s and are now widely regarded as a recurrent feature of modern economic history. Because it is difficult to observe intrinsic values in real-life markets, bubbles are often conclusively identified only in retrospect. Such a drop is known as a crash or a bubble burst, prices in an economic bubble can fluctuate erratically, and become impossible to predict from supply and demand alone. While some economists deny that bubbles occur, the cause of bubbles remains disputed by those who are convinced that asset prices often deviate strongly from intrinsic values. Many explanations have suggested, and research has recently shown that bubbles may appear even without uncertainty, speculation. In such cases, the bubbles may be argued to be rational and these approaches require that the timing of the bubble collapse can only be forecast probabilistically and the bubble process is often modelled using a Markov switching model. Similar explanations suggest that bubbles might ultimately be caused by processes of price coordination, more recent theories of asset bubble formation suggest that these events are sociologically driven. For instance, explanations have focused on emerging social norms and the role that culturally-situated stories or narratives play in these events and this was one of the earliest modern financial crises, other episodes were referred to as manias, as in the Dutch tulip mania. The metaphor indicated that the prices of the stock were inflated and fragile – expanded based on nothing but air, and vulnerable to a sudden burst, as in fact occurred. The impact of economic bubbles is debated within and between schools of thought, they are not generally considered beneficial, but its debated how harmful their formation. Political economist Robert E. Wright argues that bubbles can be identified before the fact with high confidence. A protracted period of low risk premiums can simply prolong the downturn in asset price deflation as was the case of the Great Depression in the 1930s for much of the world and the 1990s for Japan. Not only can the aftermath of a crash devastate the economy of a nation, another important aspect of economic bubbles is their impact on spending habits. Market participants with overvalued assets tend to spend more because they feel richer, many observers quote the housing market in the United Kingdom, Australia, New Zealand, Spain and parts of the United States in recent times, as an example of this effect. In an economy with a bank, the bank may therefore attempt to keep an eye on asset price appreciation. This is usually done by increasing the interest rate, in the 1970s, excess monetary expansion after the U. S. came off the gold standard created massive commodities bubbles. These bubbles only ended when the U. S, central Bank finally reined in the excess money, raising federal funds interest rates to over 14%Economic bubble – A card from the South Sea Bubble
22. John Law (economist) – John Law was a Scottish economist who believed that money was only a means of exchange that did not constitute wealth in itself and that national wealth depended on trade. He was appointed Controller General of Finances of France under the Duke of Orleans, regent for the youthful king and he was responsible for the Mississippi Company bubble and a chaotic economic collapse in France, which has been compared to the early-17th century tulip mania in Holland. The Mississippi Bubble was contemporaneous with the South Sea Company bubble of England, Law was a gambler and a brilliant mental calculator. He was known to win games by mentally calculating the odds. He originated economic ideas such as The Scarcity Theory of Value, Laws views held that money creation will stimulate the economy, that paper money is preferable to metallic money, and that shares are a superior form of money since they pay dividends. Law was born into a family of bankers and goldsmiths from Fife, his father had purchased Lauriston Castle, Law joined the family business at age fourteen and studied the banking business until his father died in 1688. Law subsequently neglected the firm in favour of more extravagant pursuits and he subsequently lost large sums of money in gambling. On 9 April 1694, John Law fought a duel with another British Dandy, Wilson had challenged Law over the affections of Elizabeth Villiers. Law killed Wilson with a pass and thrust of his sword. He was arrested, charged with murder and stood trial at the Old Bailey and he appeared before the infamously sadistic hanging-judge, Salathiel Lovell and was found guilty of murder, and sentenced to death. He was initially incarcerated in Newgate Prison to await execution and his sentence was later commuted to a fine, upon the ground that the offence only amounted to manslaughter. Wilsons brother appealed and had Law imprisoned, but he managed to escape to Amsterdam, Law urged the establishment of a national bank to create and increase instruments of credit and the issue of banknotes backed by land, gold, or silver. The first manifestation of Laws system came when he had returned to Scotland and he published a text entitled Money and Trade Considered, with a Proposal for Supplying the Nation with Money. Laws propositions of creating a bank in Scotland were ultimately rejected. He spent ten years moving between France and the Netherlands, dealing in financial speculations, problems with the French economy presented the opportunity to put his system into practice. He had the idea of abolishing minor monopolies and private farming of taxes and he would create a bank for national finance and a state company for commerce, ultimately to exclude all private revenue. This would create a monopoly of finance and trade run by the state. The council called to consider Laws proposal, including such as Samuel BernardJohn Law (economist) – John Law, by Casimir Balthazar
23. Stockbroker – Stockbrokers are known by numerous professional designations, depending on the license they hold, the type of securities they sell, or the services they provide. In the United States, a stockbroker must pass both the Series 7 and either the Series 63 or the Series 66 exams in order to be properly licensed. The first stockbroking began in Rome, where the first recorded buying and selling of shares occurred in the 2nd century BCE, after Rome fell, stockbroking did not become a realistic career until after the Renaissance, when government bonds traded in Italian city-states such as Genoa or Venice. New stock exchanges opened their doors in the 16th and 17th centuries, including the London Stock Exchange, in the 1800s, in the United States, the New York Stock Exchange opened its doors under a buttonwood tree in New York City. 24 stockbrokers signed the Buttonwood Agreement, agreeing to trade five securities under that buttonwood tree, in Canada, a stockbroker is called a Registered Representative or an Investment Advisor. To become a one has to work for a licensed firm. Passing a fourth exam results in obtaining a specialist license, all tests can be taken with the HKSI. However, passing all tests doesnt result in obtaining the license. It still needs to be approved by the regulatory body. Stockbrokers typically earn a degree in finance or business administration. A finance degree prepares students to work as stockbrokers by focusing their studies on financial laws and regulations, accounting methods, students study the principles of economics and currency, financial planning and financial forecasting. On-the-job training programs are available to aspiring stockbrokers, which allow them to gain practical experience. In Singapore, becoming a trading representative requires passing 4 exams, Modules 1A,5,6 and 6A, from the Institute of Banking and Finance and applying for the license through MAS and SGX. Stockbroking is a profession in the UK and brokers must achieve a recognised qualification from the Financial Conduct Authority s Appropriate Qualifications list. A number of qualifications are available and the one a trainee does will depend on their duties and it evolved from the London Stock Exchange, has around 40,000 members in over 100 countries and delivers more than 37,000 exams each year. It represents the interests of around 11,000 investment professionals and is part of the network of members of the CFA Institute. While the term stockbroker is still in use, more terms are broker, financial advisor. Other FINRA licenses or series exams exist, selling variable products typically requires the broker to also have one or another state insurance department licensesStockbroker – A Bloomberg Terminal stockbroker with a multi-monitor workstation.
24. Investment banking – Unlike commercial banks and retail banks, investment banks do not take deposits. From the passage of Glass–Steagall Act in 1933 until its repeal in 1999 by the Gramm–Leach–Bliley Act, Other industrialized countries, including G7 countries, have historically not maintained such a separation. As part of the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010, the two main lines of business in investment banking are called the sell side and the buy side. The sell side involves trading securities for cash or for other securities, the buy side involves the provision of advice to institutions that buy investment services. Private equity funds, mutual funds, life insurance companies, unit trusts, an investment bank can also be split into private and public functions with a Chinese wall separating the two to prevent information from crossing. The private areas of the deal with private insider information that may not be publicly disclosed, while the public areas, such as stock analysis. The first company to publicly traded stock was the Dutch East India Company. Investment banking has changed over the years, beginning as a form focused on underwriting security issuance. In the United States, commercial banking and investment banking were separated by the Glass–Steagall Act, the repeal led to more universal banks offering an even greater range of services. Many large commercial banks have therefore developed investment banking divisions through acquisitions, notable large banks with significant investment banks include JPMorgan Chase, Bank of America, Credit Suisse, Deutsche Bank, UBS, Barclays, and Wells Fargo. The traditional service of underwriting security issues has declined as a percentage of revenue, as far back as 1960, 70% of Merrill Lynchs revenue was derived from transaction commissions while traditional investment banking services accounted for 5%. However, Merrill Lynch was a relatively retail-focused firm with a large brokerage network, investment banking is split into front office, middle office, and back office activities. Investment banks offer services to corporations issuing securities and investors buying securities. For corporations, investment bankers offer information on when and how to place their securities on the open market, therefore, investment bankers play a very important role in issuing new security offerings. Front office is described as a revenue generating role. Markets is divided into sales and trading, and research, a pitch book of financial information is generated to market the bank to a potential M&A client, if the pitch is successful, the bank arranges the deal for the client. The investment banking division is divided into industry coverage and product coverage groups. On behalf of the bank and its clients, an investment banks primary function is buying and selling productsInvestment banking – Capital structure
25. Liliaceae – The lily family, Liliaceae, consists of fifteen genera and about 705 known species of flowering plants within the order Liliales. They are monocotyledonous, perennial, herbaceous, often bulbous geophytes, plants in this family have evolved with a fair amount of morphological diversity despite genetic similarity. Common characteristics include large flowers with parts arranged in threes, with six colored or patterned petaloid tepals arranged in two whorls, six stamens and a superior ovary. The leaves are linear in shape, with their veins usually arranged parallel to the edges, single and arranged alternating on the stem, most species are grown from bulbs, although some have rhizomes. Consequently, many sources and descriptions labelled Liliaceae deal with the sense of the family. The family evolved approximately 52 million years ago during the Late Cretaceous to Early Paleogene eras, Liliaceae are widely distributed, mainly in temperate regions of the Northern Hemisphere and the flowers are insect pollinated. Many Liliaceae are important ornamental plants, widely grown for their flowers and involved in a major floriculture of cut flowers. Some species are poisonous if eaten and can have health effects in humans. A number of Liliaceae genera are popular cultivated plants in private, lilies and tulips in particular have had considerable symbolic and decorative value, and appear frequently in paintings and the decorative arts. They are also an important product. The diversity of characteristics complicates any description of the Liliaceae morphology, the diversity is also of considerable evolutionary significance, as some members emerged from shaded areas and adapted to a more open environment. The Liliaceae are characterised as monocotyledonous, perennial, herbaceous, bulbous flowering plants with simple trichomes, the flowers may be arranged along the stem, developing from the base, or as a single flower at the tip of the stem, or as a cluster of flowers. They contain both male and female characteristics and are symmetric radially, but sometimes as a mirror image, most flowers are large and colourful, except for Medeoleae. Both the petals and sepals are similar and appear as two concentric groups of petals, that are often striped or multi-coloured, and produce nectar at their bases. The stamens are usually in two groups of three and the pollen has a single groove, the ovary is placed above the attachment of the other parts. There are three fused carpels with one to three chambers, a style and a three-lobed stigma. The embryo sac is of the Fritillaria type, the fruit is generally a wind dispersed capsule, but occasionally a berry which is dispersed by animals. The leaves are simple and elongated with veins parallel to the edges, arranged singly and alternating on the stemLiliaceae
26. Futures contract – In finance, a futures contract is a standardized forward contract which can be easily traded between parties other than the two initial parties to the contract. The parties initially agree to buy and sell an asset for an agreed upon today, with delivery and payment occurring at a future point. Because it is a function of an asset, a futures contract is a derivative product. Contracts are negotiated at futures exchanges, which act as a marketplace between buyers and sellers, the buyer of a contract is said to be long position holder, and the selling party is said to be short position holder. For example, in gold trading, the margin varies between 2% and 20% depending on the volatility of the spot market. The first futures contracts were negotiated for agricultural commodities, and later contracts were negotiated for natural resources such as oil. The original use of futures contracts was to mitigate the risk of price or exchange rate movements by allowing parties to fix prices or rates in advance for future transactions. The Chicago Board of Trade listed the first-ever standardized exchange traded forward contracts in 1864, by 1875 cotton futures were being traded in Bombay in India and within a few years this had expanded to futures on edible oilseeds complex, raw jute and jute goods and bullion. The 1972 creation of the International Monetary Market, the worlds first financial futures exchange, in 1976, the IMM added interest rate futures on US treasury bills, and in 1982 they added stock market index futures. Although futures contract are oriented towards a future point, their main purpose is to mitigate risk of default by either party in the intervening period. In this vein, the futures exchange requires both parties to put up initial cash, or a bond, known as the margin. To mitigate the risk of default, the product is marked to market on a basis where the difference between the initial agreed-upon price and the actual daily futures price is reevaluated daily. If the margin account goes below a certain value set by the Exchange, then a call is made. This process is known as marking to market, thus on the delivery date, the amount exchanged is not the specified price on the contract but the spot value. Upon marketing the strike price is reached and creates lots of income for the caller. To minimize credit risk to the exchange, traders must post a margin or a performance bond, to minimize counterparty risk to traders, trades executed on regulated futures exchanges are guaranteed by a clearing house. The clearing house becomes the buyer to each seller, and the seller to each Buyer and this enables traders to transact without performing due diligence on their counterparty. Margin requirements are waived or reduced in cases for hedgers who have physical ownership of the covered commodity or spread traders who have offsetting contracts balancing the positionFutures contract – Finance
27. Tontine – A tontine is an investment plan for raising capital, devised in the 17th century and relatively widespread in the 18th and 19th centuries. It combines features of an annuity and a lottery. Each subscriber pays a sum into the fund, and thereafter receives an annuity. As members die, their shares devolve to the other participants, on the death of the last member, the scheme is wound up. Tontines acquired a reputation, and were eventually prohibited or heavily restricted in many countries. However, in March 2017, the New York Times reported that tontines were getting fresh consideration as a way for people to get steady retirement income, tonti put his proposal to the French royal government, but after consideration it was rejected by the Parlement de Paris. The first true tontine was therefore organised in the city of Kampen in the Netherlands in 1670, the French finally established a state tontine in 1689. The English government organised a tontine in 1693, Nine further government tontines were organised in France down to 1759, four more in Britain down to 1789, and others in the Netherlands and some of the German states. Those in Britain were not fully subscribed, and in general the British schemes tended to be less popular, each investor pays a sum into the tontine. Each investor then receives annual dividends on the capital invested, as each investor dies, his or her share is reallocated among the surviving investors. This process continues until only one investor survives, each subscriber receives only dividends, the capital is never paid back. Sometimes the names in were well-known people such as kings and queens and this eased the problem of death-verification and also reduced the risk of murder etc. to improve ones chances. In a later variation, the capital devolves upon the last survivor, thus dissolving the trust and this version has often been the plot device for mysteries and detective stories. Financial inventions were patentable under French law from January 1791 until September 1792, in June 1792 a patent was issued to inventor F. P. Dousset for a new type of tontine in combination with a lottery. Louis XIV first made use of tontines in 1689 to fund military operations when he could not otherwise raise the money, the English government first issued tontines in 1693 to fund a war against France, part of the Nine Years War. Tontines soon caused problems for their governments, as the organisers tended to underestimate the longevity of the population. At first, tontine holders included men and women of all ages and this created the possibility of significant returns for the shareholders, with significant losses for the organizers. In New Zealand at the time, one of the critics of tontines had been the governmentTontine – Tontine Hotel sign, Ironbridge, UK
28. Common stock – Common stock is a form of corporate equity ownership, a type of security. The terms voting share and ordinary share are also used frequently in other parts of the world and they are known as Equity shares or Ordinary shares in the UK and other Commonwealth realms. This type of share gives the stockholder the right to share in the profits of the company, and to vote on matters of corporate policy and it is called common to distinguish it from preferred stock. In the event of bankruptcy, common stock investors receive any remaining funds after bondholders, creditors, as such, common stock investors often receive nothing after a liquidation bankruptcy Chapter 7. Common stockholders can also earn money through capital appreciation, Common shares may perform better than preferred shares or bonds over time, in part to accommodate the increased risk. Shareholder rights are more conceptual than technical or factual and their most common source is in the statutory and case law of the jurisdiction in which the company was formed. Some shareholders elect to enter into shareholder agreements that create new rights among the shareholders, some common stock shares have voting rights on certain matters, such as electing the board of directors. In practice, its questionable whether or not such actions can be organized or ruled in their favor, common/Equity stock is classified to differentiate it from preferred stock. Each is considered a class of stock, with different series of each issued from time to such as Series B Preferred Stock. Nevertheless, using Class B Common Stock is a label for a super-voting series of common stock. Capital surplus Equity Share capital Shares authorized Shares issued Shares outstanding Treasury stock Common Stock vs. Preferred StockCommon stock – Financial markets
29. Dutch auction – The winning participant pays the last announced price. This is also known as an auction or an open-outcry descending-price auction. This type of auction is convenient when it is important to auction goods quickly, the Dutch auction guarantees that the best possible price is obtained, in contrast to a traditional auction where the winning bidder may have been prepared to bid considerably more. In a Dutch auction, the item being sold is initially offered at a high price. Bids are not sealed, as they are in some types of auctions, the price is lowered in decrements until a bidder accepts the current price. That bidder wins the auction and pays that price for the item, for example, suppose a business is auctioning off a used company car. The bidding may start at $15,000, the bidders will wait as the price is successively reduced to $14,000, $13,000, $12,000, $11,000 and $10,000. When the price reaches $10,000, Bidder A decides to accept that price and, because he is the first bidder to do so, there is some confusion over terminology. Some financial commentators and some third-party auction sites use the term Dutch auction to refer to second-price auctions, in a second price auction the seller offers more than one identical item for sale so that there may be more than one winning bidder. Each bidder can bid for all the items or only some of them, all winning bidders, however, need only pay the lowest qualifying bid. Priority goes to the bidders who submitted their bids first if there are more successful bids than items available, in order to beat a competing bidder one must bid a higher price per item than that competitor, regardless of the number of items that are being bid for. Here is an example of how this work, The seller auctions 5 identical items. Bidder High bids for 4 items at $21 each, Bidder Mid bids for 2 items at $20 each. Bidder Low bids for 3 items at $18 each, the outcome of this auction would be, Bidder High wins all the items they sought, at $20 each. Bidder Mid wins 1 of the 2 items they sought, also at $20 each, the price is $20 because that was the lowest successful bid. Since Bidder Mid was only awarded 1 item, and his bid was for 2 items. As a winning bidder, you have the right to refuse paying only if you are awarded fewer than the number of the items you were bidding on, if this were a Dutch Auction then the first bid made wins the item regardless of value. The United States Department of the Treasury, through the Federal Reserve Bank of New York, bids will be filled from the lowest yield until the entire $10 billion has been raisedDutch auction – A 1957 Dutch auction in Germany to sell fruits
30. Share (finance) – In financial markets, share is a unit of account for various investments. It often means the stock of a corporation, but is used for collective investments such as mutual funds, limited partnerships. Corporations issue shares which are offered for sale to raise share capital, the owner of shares in the corporation is a shareholder of the corporation. A share is a unit of capital, expressing the ownership relationship between the company and the shareholder. The denominated value of a share is its value, and the total of the face value of issued shares represent the capital of a company. The income received from the ownership of shares is a dividend, the process of purchasing and selling shares often involves going through a stockbroker as a middle man. The liquidity of markets is a consideration as to whether a share is able to be sold at any given time. An actual sale transaction of shares between buyer and seller is usually considered to provide the best prima facie market indicator as to the value of shares at that particular time. Shares outstanding are those that are authorized by the government, issued by the company, the number of shares outstanding times the share price gives the market capitalization of the company, which if the trading price held constant would be sufficient to purchase the company. Treasury shares are authorized, issued, and held by the company itself, issued shares is the sum of shares outstanding and treasury shares. Shares authorized include both issued and unissued but authorized by the constitutional documents. Tax treatment of dividends varies between tax jurisdictions, for instance, in India, dividends are tax free in the hands of the shareholder, but the company paying the dividend has to pay dividend distribution tax at 12. 5%. There is also the concept of a dividend, which is not tax free. Further, Indian tax laws include provisions to stop dividend stripping, historically, investors were given share certificates as evidence of their ownership of shares. In modern times, certificates are not always given and ownership may be recorded electronically by a system such as CREST, a securities depositoryShare (finance) – Securities
31. Polder model – The polder model is consensus decision-making, based on the acclaimed Dutch version of consensus-based economic and social policy making in the 1980s and 1990s. The polder model has been described as a recognition of pluriformity. It is thought that the Dutch politician Ina Brouwer was the first to use the term poldermodel, although it is uncertain whether she coined the term or simply seems to have been the first to write it down. The Dutch polder model is characterised by the cooperation between employers organisations such as VNO-NCW, labour unions such as the Federation Dutch Labour Movement. These talks are embodied in the Social-Economic Council, the SER serves as the central forum to discuss labour issues and has a long tradition of consensus, often defusing labour conflicts and avoiding strikes. Similar models are in use in Finland, namely Comprehensive Income Policy Agreement and this polder model, combined with a neoliberal economic policy of privatisation and budget cuts has been held to be responsible for the Dutch economic miracle of the late 1990s. An important role in this process was played by the Dutch Central Planning Bureau, many authors and researchers, however, have argued that the Wassenaar Agreement has been largely overrated. Most of these writers have argued that considerable continuity can be seen from the 1950s on, the young historian Stijn Kuipers, however, draws the line even further. In an article which is indebted to the work of Coen Helderman. It would follow that the model is much older and therefore could have had a larger influence on Dutch society. The term polder model and especially the verb polderen has been used pejoratively by some politicians to describe the slow decision-making process where all parties have to be heard. The model flourished under the Purple governments of Dutch prime minister Wim Kok, a coalition including the traditional rivals the Labour Party, somewhat ironically, there is no consensus about the exact historical background of the polder model. In general there are three views on this subject, one explanation points to the rebuilding of the Netherlands after World War II. Corporatism was an important feature of Christian Democratic, and particularly Catholic, important institutions of the polder model, like the SER, were founded in this period. No single political party has ever had anything approaching an overall majority in parliament, another explanation points to the dependency of the Netherlands on the international economy. The Dutch cannot afford protectionism against the tides of the international economy. Therefore, to cushion against the economy, they set up a tri-partite council which oversaw an extensive welfare state. A third explanation refers to an aspect of the Netherlands, that it consists in large part of polders, land reclaimed from the seaPolder model – Wim Kok, the former Prime Minister of Netherlands, supported the Polder Model.
32. Fairtrade certification – The Fairtrade certification initiative was created to form a new method for economic trade. This method takes a stand point, and considers the producers first. The Fairtrade organization forms a partnership between the consumer and the producer, and aims to eliminate other parties within the supply chain, the second part of Fairtrade International is the independent certifier, FLOCert. FLOCert ensures that companies and producers all comply with FLOs standards of trade, Fairtrade International was initially made up of other national fair trade initiatives from around the world, who came together to form one international umbrella organisation. Fairtrade International started with the industry, but now covers a range of products such as cocoa, fruit, cotton, flowers, tea. The established buyers of these make up a niche market. As of 2011,827 producer organizations in 58 developing countries were Fairtrade certified, the effectiveness of Fairtrade is questionable, and in some cases workers on Fairtrade farms have a lower standard of living than on similar farms outside the Fairtrade system. The fair trade movement stemmed from an initiative established by the Dutch development agency, Solidaridad, the agency recognised that the producers were not being treated fairly, and strived to create a more ethical system to trade. The Max Havelaar seal, which was based on a character, was established to license existing roasters and retailers who complied with its fair trade criteria. The seal provided specific benefits for cooperatives of small producers in Mexico, with the aim of balancing the production of crops to be exported. The four benefits in this model of the fairtrade initiative were. An additional 10% of the price for their investment in social and environmental projects. The Solidaridad informed large audiences of the mistreatment of coffee producers and they worked with other associations as well as the mass media to spread the message and create an awareness of their fair trade initiative. Because of their efforts, in 1988 the first bag of Max Hevelaar sealed coffee from Mexico was delivered to Hollands Prince Claus, by the 1990s every western European country had established their own national version of the Max Hevelaar initiative. Between the late 1980s and the mid 1990s, multiple national initiatives following a trade system coexisted within Europe, USA, Canada. 1997 however,17 national initiatives joined forces to create one international umbrella organisation called the Fair Trade Organization, FLO is based in Bonn, Germany, and has quickly become the largest organisation of its kind. FLO also has branches and field workers situated in Africa, Central and South America, the international fair trade label was introduced in 2002 to improve visibility for consumers. A key part of the Fair Trade initiative is to consumers through innovative marketingFairtrade certification – A T-shirt made from Fairtrade certified cotton.
33. Euronext Amsterdam – The Amsterdam Stock Exchange is the former name for the stock exchange based in Amsterdam. It merged on 22 September 2000 with the Brussels Stock Exchange and the Paris Stock Exchange to form Euronext, the Amsterdam Stock Exchange was established in 1602 by the Dutch East India Company for dealings in its printed stocks and bonds. It was subsequently renamed the Amsterdam Bourse and was the first to begin trading in securities. Although it is considered to be the first stock market, Fernand Braudel argues that this is not precisely true, It is not quite accurate to call the first stock market. The statutes of Verona in 1318 confirm the existence of the settlement or forward market, in 1428, the jurist Bartolomeo de Bosco protested against the sale of forward loca in Genoa. All evidence points to the Mediterranean as the cradle of the stock market, but what was new in Amsterdam was the volume, the fluidity of the market and publicity it received, and the speculative freedom of transactions. That said, it remains the first incarnation of what we could today recognize as a stock market, the European Option Exchange was founded in 1978 in Amsterdam as a futures and options exchange. In 1983 it started a market index, called the EOE index. It should be noted that forward contracts, options, and other sophisticated instruments were traded on the Amsterdam Stock Exchange well before this, in 1997 the Amsterdam Stock Exchange and the EOE merged, and its blue chip index was renamed AEX, for Amsterdam EXchange. It is now managed by Euronext Amsterdam, on 3 October 2011, Princess Máxima opened the new trading floor of the Amsterdam Stock Exchange. The former Stock Exchange building was the Beurs van Berlage, the Amsterdam stock exchange is considered the oldest “modern” securities market in the world. It was shortly after the establishment of the Dutch East India Company in 1602 when equities began trading on a basis as a secondary market to trade its shares. Prior to that, the market existed primarily for the exchange of commodities, in that year, the States General of the Netherlands granted the VOC a 21-year charter over all Dutch trade in Asia and quasi-governmental powers. The monopolistic terms of the charter granted the VOC complete authority over trade defenses, war armaments. The first multi-national corporation with significant resource interests was thereby established, in addition, the high level of risk associated with trade in Asia gave the VOC its private ownership structure. In the Amsterdam East India House alone,1,143 investors subscribed for over ƒ3,679,915 or €100 million in today’s dollars, the subscription terms of each stock purchase offered shareholders the option to transfer their shares to a third party. Quickly a secondary market arose in the East India House for resale of this stock through the official bookkeeper. After an agreement had been reached between the two parties, the shares were transferred from seller to buyer in the “capital book. ”The official account, held by the East India House, encouraged investors to tradeEuronext Amsterdam – Amsterdam Stock Exchange building at Beursplein 5
34. Johan Palmstruch – Johan Palmstruch was a Dutch merchant credited with the introduction of paper money to Europe. He became a commissioner in the National Board of Trade after his arrival in Sweden in 1647, the first two such proposals were rejected but the third, which promised half the banks profits to the crown, was accepted. Stockholms Banco was thus founded in 1657 with Palmstruch appointed as general manager, the bank itself was nothing new as it was simply an imitation of the successful public deposit banks of Amsterdam and Hamburg, however Palmstruch himself added two important innovations. These were very successful, but the bank lending more than it could afford and printed too many banknotes without the necessary collateral. Palmstruch was charged with irresponsible book-keeping and with not having the cash to repay these credit notes due to miscalculation and he was unable to make up this shortage and in 1668 was sentenced to loss of his title, loss of his banking privilege, and eternal exile or death. The government reprieved the death penalty and Palmstruch was instead imprisoned and he remained in prison until 1670 and died the following year at the age of 60Johan Palmstruch – The first paper money in Europe (1666).
35. Zaandam – Zaandam is a city in the Netherlands, in the province of North Holland. It is the city of the municipality of Zaanstad. It is located on the Zaan, nearby the North Sea Canal, the statistical district Zaandam, which covers the city and the surrounding countryside, has a population of around 72,597. Zaandam was a municipality until 1974, when it became a part of the new municipality of Zaanstad. Zaandam and the surrounding Zaan River region, called the Zaanstreek, in the Dutch Golden Age, Zaandam served as a large milling centre. Thousands of windmills powered saws that were processing Scandinavian wood for the shipbuilding, a statue was commissioned from the Bosnian Serb sculptor Slavomir Miletić in honour of this era, and the statue, “The Woodworker”, was installed on 20 June 2004. Zaandam was a city in the first Industrial Revolution. Into the second half of the 20th century, Zaandam was still an important lumber port, Zaandam is also historically linked with the whaling industry. In 1697, the czar Peter I of Russia spent some time in Zaandam, the house he stayed in has been preserved as a small museum, the Czar Peter House. In 1871, the impressionist painter Claude Monet lived in Zaandam for approximately half a year, during that time, he made 25 paintings of the area, including Bateaux en Hollande pres de Zaandam and A windmill at Zaandam. The first European McDonalds restaurant opened in Zaandam in 1971, football club AZ was founded in Zaandam on May 10,1967. Kuyper, Gemeente Atlas van Nederland, 1865-1870, Zaandam, map of the former municipality, around 1868Zaandam – A windmill near Zaandam painted in 1871 by Claude Monet.
36. History of capitalism – The history of capitalism can be traced back to early forms of merchant capitalism practiced in Western Europe during the Middle Ages. It began to develop into its modern form during the Early Modern period in the Protestant countries of North-Western Europe, especially the Netherlands and England. Traders in Amsterdam and London created the first chartered joint-stock companies driving up commerce and trade, much of the history of the past five hundred years is concerned with the development of capitalism in its various forms. Since 2000 the new field of History of Capitalism has appeared. It includes topics such as insurance, banking and regulation, the dimension, and the impact on the middle classes. Manorial arrangements inhibited the development of capitalism in a number of ways, the lords who owned the land relied on force to guarantee that they were provided with sufficient food. Because lords were not producing to sell on the market, there was no pressure for them to innovate. The demographic crisis of the fourteenth century upset this arrangement and these factors led to a decline in agricultural production. In response, feudal lords sought to expand production by expanding their domains through warfare. Some moved to towns, some purchased land, and some entered into favorable contracts to rent lands from lords who needed to repopulate their estates. The collapse of the system in England created a class of tenant farmers with more freedom to market their goods. Marx labeled this period the pre-history of capitalism, in effect, feudalism began to lay some of the foundations necessary for the development of mercantilism, a precursor of capitalism. Feudalism was mostly confined to Europe and lasted from the period through the sixteenth century. Feudal manors were almost entirely self-sufficient, and therefore limited the role of the market and this stifled any incipient tendency towards capitalism. However, the sudden emergence of new technologies and discoveries, particularly in agriculture and exploration. The most important development at the end of feudalism was the emergence of what Robert Degan calls the dichotomy between wage earners and capitalist merchants, the transition from feudalism to early forms of capitalism happened in periods differing by country. According to Cambridge political philosopher and historian Quentin Skinner, the towns of northern Italy were the first urbanized parts of Europe, dating to the twelfth century. German bishop Otto of Freising recorded the growth of life in Germany, the loyalty of landed nobility to town authorities, and the emergence of republicanismHistory of capitalism – Map of a medieval manor. Notice the large commons area and the division of land into small strips. The mustard-colored areas are part of the demesne, the hatched areas part of the glebe. William R. Shepherd, Historical Atlas, 01923
37. Stock trader – A stock trader or equity trader or share trader is a person or company involved in trading equity securities. Stock traders may be an agent, hedger, arbitrageur, speculator, a stock investor is an individual or company who puts money to use by the purchase of equity securities, offering potential profitable returns, as interest, income, or appreciation in value. This buy-and-hold long term strategy is passive in nature, as opposed to speculation, many stock speculators will trade bonds as well. Stock speculators are often categorized as stock traders, if trading in that capacity. Individuals or firms trading equity on the markets as their principal capacity are often called stock traders. Stock speculators usually try to profit from price volatility with trades lasting anywhere from several seconds to several weeks. The stock speculator is usually a professional, persons can call themselves full or part-time stock traders/investors while maintaining other professions. When a stock speculator/investor has clients, and acts as a manager or adviser with the intention of adding value to their clients finances. In this case, the manager could be an independent professional or a large bank corporation employee. These organized investors, are referred to as institutional investors. Several different types of trading strategies or approaches exist including day trading, trend following, market making, scalping, momentum trading, trading the news. They rely primarily on fundamental analysis for their investment decisions and fully recognize stock shares as part-ownership in the company, however, during the 2001-2003 equity bear market, the buy-and-hold strategy lost some followers as broader market indexes like the NASDAQ saw their values decline by over 60%. Stock traders advise shareholders and help manage portfolios, traders engage in buying and selling bonds, stocks, futures and shares in hedge funds. A stock trader also conducts research and observation of how financial markets perform. Other duties of a stock trader include comparison of financial analysis to current, professional stock traders who work for a financial company, are required to complete an internship of up to four months before becoming established in their career field. In the United States, for example, internship is followed up by taking and passing a Financial Industry Regulatory Authority-administered Series 63 or 65 exam, Stock traders who pass demonstrate familiarity with U. S. Securities and Exchange Commission compliant practices and regulation. Stock traders with experience usually obtain a degree in a financial. Supervisory positions as a trader may usually require an MBA for advanced stock market analysis, the U. S. Bureau of Labor Statistics reported that growth for stock and commodities traders was forecast to be greater than 21% between 2006 and 2016Stock trader – Historical photo of stock traders and stockbrokers in the trading floor of the New York Stock Exchange (1963).
38. Dutch guilder – The Dutch guilder or fl. was the currency of the Netherlands from the 17th century until 2002, when it was replaced by the euro. Between 1999 and 2002, the guilder was officially a national subunit of the euro, however, physical payments could only be made in guilder, as no euro coins or banknotes were available. The Netherlands Antillean guilder is still in use in Curaçao and Sint Maarten, in 2004, the Surinamese guilder was replaced by the Surinamese dollar. The Dutch name gulden was a Middle Dutch adjective meaning golden, the symbol ƒ or fl. for the Dutch guilder was derived from another old currency, the florin, called the florin in English. The exact exchange rate, still relevant for old contracts and for exchange of the old currency for euros at the bank, is 2.20371 Dutch guilders for 1 euro. Inverted, this gives EUR0.453780 for NLG1, before the introduction of the first guilder, there were regional and foreign golden coins that were likely referred to as gulden in Dutch. The first internationally accepted Dutch coin called gulden dates from 1517, even before that, the County of Holland had minted golden coins since 1378. An early guilder, a 10. 61-gram.910 silver coin, was minted by the States of Holland and this guilder was divided into 20 stuivers, each of 8 duiten or 16 penningen. The guilder gradually replaced other silver coin circulating in the United Netherlands, the florijn, the daalder, the rijksdaalder, the silver ducat. Between 1810 and 1814, the Netherlands was annexed to France, after the Napoleonic wars, the Kingdom of the Netherlands readopted the guilder. In 1817 it became decimalised, with one guilder equal to 100 cents, until 1948, the plural of cent used on coins was centen, after that it was cent. The Netherlands was initially on a standard, with the guilder equal to 605.61 milligrams of fine gold or 9.615 grams of fine silver. In 1840, the standard was adjusted to 9.45 grams. In 1875, the Netherlands adopted a standard with 1 guilder equal to 604.8 milligrams of fine gold. The gold standard was suspended between 1914 and 1925 and was abandoned in 1936, following the German occupation, on 10 May 1940, the guilder was pegged to the Reichsmark at a rate of 1 guilder =1.5 Reichsmark. This rate was reduced to 1.327 on 17 July of the same year, the liberating Allied forces set an exchange rate of 2.652 guilders =1 U. S. dollar, which became the peg for the guilder within the Bretton Woods system. In 1949, the peg was changed to 3.8 guilders =1 dollar, in 1961, the guilder was revalued to 3.62 guilders =1 dollar, a change approximately in line with that of the German mark. After 1967 guilders were made from nickel instead of silver, in 2002, the guilder was replaced by the euro at an exchange rate of 2.20371 guilders =1 EuroDutch guilder – 1967 one-guilder coin
39. Naked short selling – When the seller does not obtain the shares within the required time frame, the result is known as a failure to deliver. The transaction generally remains open until the shares are acquired by the seller, Short selling is used to anticipate a price fall, but exposes the seller to the risk of a price rise. In 2008, the SEC banned what it called abusive naked short selling in the United States, as well as other jurisdictions. Failing to deliver shares is legal under certain circumstances, and naked short selling is not per se illegal, in the United States, naked short selling is covered by various SEC regulations which prohibit the practice. Critics, including Overstock. coms Patrick M. Byrne, have advocated for stricter regulations against naked short selling, some commentators have contended that despite regulations, naked shorting is widespread and that the SEC regulations are poorly enforced. Its critics have contended that the practice is susceptible to abuse, can be damaging to targeted companies struggling to raise capital, however, other commentators have said that the naked shorting issue is a devil theory, not a bona fide market issue and a waste of regulatory resources. Short selling is a form of speculation that allows a trader to take a position in a stock of a company. Such a trader first borrows shares of stock from their owner. Next, the trader sells the shares and delivers them to the buyer who becomes their new owner. The buyer is unaware that the shares have been sold short. Some time later, the trader closes his short position by purchasing the same number of shares in the market, the traders profit is the difference between the sale price and the purchase price of the shares. In contrast to going long where sale succeeds the purchase, short sale precedes the purchase, because the seller/borrower is generally required to make a cash deposit equivalent to the sale proceeds, it offers the lender some security. Naked short selling is a case of short selling without first arranging a borrow, if the stock is in short supply, finding shares to borrow can be difficult. The seller may also not to borrow the shares, in some cases because lenders are not available. When shares are not borrowed within the time period and the short-seller does not tender shares to the buyer. Nevertheless, the trade will continue to sit open or the buyer may be credited the shares by the DTCC until the short-seller either closes out the position or borrows the shares and it is difficult to measure how often naked short selling occurs. Fails to deliver are not necessarily indicative of naked shorting, Naked shorting can be invisible in a liquid market, as long as the short sale is eventually delivered to the buyer. However, if the covers are impossible to find, the trades fail, fail reports are published regularly by the SEC, and a sudden rise in the number of fails-to-deliver will alert the SEC to the possibility of naked short sellingNaked short selling – Schematic representation of naked short selling in two steps. The short seller sells shares without owning them. He then purchases and delivers the shares for a different market price. If the short seller cannot afford the shares in the second step, or the shares are not available, a " fail to deliver " results.
40. Stock certificate – In corporate law, a stock certificate is a legal document that certifies ownership of a specific number of shares or stock in a corporation. Over time, these functions have been rendered redundant by statutory schemes to streamline the administrative burden on corporations, most jurisdictions now require corporations to maintain records of ownership or transfers of shareholdings, and do not permit share certificates to be issued to bearer. Ruben Schalk, history student at the Universiteit Utrecht, discovered the so far oldest share certificate in the world in the Westfries Archief in Hoorn, the certificate dates from 9 September 1606 and was issued by the VOC-chamber Enkhuizen. It was sold to Pieter Hermanszoon Boode, the second page records the payments of dividend. In the United States and other countries, electronic registration is supplanting the stock certificate, in the United States over 420 of the 7, 000-plus publicly traded securities do not issue paper certificates. The United States Central Securities Depository, the DTC, has continued to promote efforts to eliminate paper stock certificates. Countries around the world have adopted similar initiatives with many countries setting deadlines for statutory dematerialization, another alternative to both paper and electronic registration is the use of paper-equivalent electronic stock certificates. Forty-seven states have enacted legislation equivalent to the Uniform Electronic Transactions Act, in Sweden, share certificates have been largely abolished, people using electronic shares instead. Sometimes a shareholder with a certificate can give a proxy to another person to allow them to vote the shares in question. Similarly, a shareholder without a certificate may often give a proxy to another person to allow them to vote the shares in question. Voting rights are defined by the charter and corporate law. Stock certificates are generally divided into two forms, registered stock certificates and bearer stock certificates, a registered stock certificate is normally only evidence of title, and a record of the true holders of the shares will appear in the stockholders register of the corporation. A bearer stock certificate, as its name implies is a bearer instrument, a stock certificate represents a legal proprietary interest in the common stock or assets of the issuer corporation. Registration of transfer is a type of novation, there are old company research websites that can determine, for a fee, whether or not an old stock certificate or bond certificate has collectible or redeemable value. Bearer bond Bearer instrument Scripophily Stock certificates franked with revenue tax stamps Dematerialization Direct holding systemStock certificate – Financial markets
41. Stichting Max Havelaar – Several of these corresponding organizations in other European countries also use the Max Havelaar name. The name comes from Max Havelaar, which is both the title and the character of a Dutch 19th-century novel critical of Dutch colonialism in the Dutch East Indies. The label, used to distinguish Fairtrade products from conventional ones, aims to improve the living and working conditions of small farmers, Fairtrade products are also available at Albert Heijn supermarkets across the Netherlands and online at MUD Jeans, the Dutch fair trade certified denim brand. In 2006, Fairtrade labelled sales in the Netherlands amounted to €41 million, douwe Egberts, which sells a number of coffee brands under self-developed ethical criteria, believed the requirements were discriminatory. After several months of discussions and legal challenges, the province of Groningen prevailed in a judgement in favor of the province. Stichting Max Havelaar Max Havelaar SwitzerlandStichting Max Havelaar
42. Pieter de la Court – Pieter de la Court was a Dutch economist and businessman, he is the origin of the successful De la Court family. He pioneered modern thinking about the importance of free competition and was an uncompromising advocate of the republican form of government. Pieter de la Court was born in Leiden, the son of Pieter de la Court the Elder, Pieter de la Court the Elder was a successful cloth merchant before he arrived in Leiden. His wife also came from a family of wealthy cloth manufacturers and they had established themselves as members of the local economic elite by the time Pieter was born. The couple had three children, Jacob, Johanna and Johan. Johan is generally seen as the author of at least two of the books that have later been ascribed to Pieter, De la Court studied at Leiden University and completed his education with a Grand Tour through Europe in 1641 -1643. He went to London, Saumur, Geneva and Basle, the diary he kept during his journey has been preserved and was published in 1928. After returning to Leiden, De la Court entered his fathers profession, by 1650 the firm of the two brothers had evolved into one of the leading cloth operations in. In spite of his immigrant background De la Court was able to penetrate the social elite of Holland. He became a friend of Johan Eleman, who was a member of Leidens governing council and a relative of John de Witt. In 1657 De la Court married Elemans sister in law, Elisabeth Tollenaer, in 1660 death struck again, this time taking De la Courts younger brother and business partner Johan. Pieter was remarried in 1661, this time to Catharina van der Voort and it was in this turbulent period of De la Courts life that he published almost all of his books about the political economy of Holland and the larger Dutch Republic. In the preface to the Interest van Holland, the most renowned of these books, the centerpiece of this body of work was the Interest of Holland, published in 1662. In Holland the Interest van Holland gained notoriety and infamy as a republican manifesto, abroad the Interest was widely translated and read as an explanatory guide to the miraculous economic success of the Dutch. De la Courts second wife Catharina van der Voort gave him two children, Magdalena and Pieter, later named Pieter de la Court van der Voort, in 1665 the family moved from Leiden to Amsterdam, by then the undisputed centre of world trade. There De la Court expanded the scope of his business activities by participating in the ventures of his two brothers in law. De la Court became the leader of a consortium of Amsterdam merchants who sought to break the monopoly of the Dutch East India Company on all trade with the Dutch East Indies. The group filed petitions which claimed that the monopoly was limited to the route around the Cape of Good HopePieter de la Court – Pieter de la Court.
43. Amsterdam Wisselbank – The Bank of Amsterdam was an early bank, vouched for by the city of Amsterdam, established in 1609, the precursor to, if not the first, modern central bank. During the last decade of the Republic of the United Provinces, in 1790, the premium on the Banks money disappeared, the City of Amsterdam took over the control in 1791. After the creation of the Kingdom of the Netherlands in 1815 and its function was mainly taken over by the Nederlandsche Bank, founded in 1814. In Renaissance Europe, the currency of small states—such as Genoa, Hamburg, Venice, the foreign money, clipped and worn, lowered the value of a countrys currency. A countrys own freshly minted money, therefore, bore an agio, furthermore, it was melted as soon as it was released, its metallic content being worth more than its nominal value. In order to remedy this situation, a bank was founded in 1609 under the protection of the city of Amsterdam. This bank at first received both foreign and local coinage at their real, intrinsic value, deducted a small coinage and management fee and this credit was known as bank money. Being always in accord with mint standards, and always of the same value, at the same time a new regulation was introduced, according to which all bills drawn at Amsterdam worth more than 600 guilders must be paid in bank money. This both removed all uncertainty from these bills and compelled all merchants to keep an account with the bank, Bank money had several distinct advantages over other forms of money. Furthermore, it was of a known, superior quality, because of the above it bore an agio, being worth more than its nominal value. Consequentially, it was not often that clients asked for their money to be extracted from the bank, a shilling freshly minted would buy no more than a clipped and worn one. It was better for clients to sell the debt the bank owed them—their credit—at the market, earning a premium, deposits of coin constituted but a small part of bank capital. Most of the banks capital originated with deposits of gold and silver bullion, intrinsically of higher value as bullion was not debased, unlike most of the circulating coinage. The Bank of Amsterdam gave credit for deposits of gold and silver worth about 5 percent less than their mint price. 25% for silver and this fee could, of course, be paid every 6 months, extending the period of deposit. The difference of fees has been attributed both to the difficulty of ascertaining the purity of gold and to a wish to encourage deposits of silver, it being the standard metal of the time. If a depositor did not claim his deposit back after six months, it fell to the bank, the terms of deposit were such that deposits of bullion were most commonly made when the price was somewhat lower than ordinary, and taken out again when it rose. The proportions between the price, the mint price, and the market price of gold bullion were always nearly the same. A person could generally sell his receipt for the difference between the mint price of bullion and the market price, as a receipt was nearly always worth something, it was only rarely that deposits were allowed to fall to the bank through the expiration of receiptsAmsterdam Wisselbank – A painting by Pieter Saenredam of the old town hall in Amsterdam where the bank was founded in 1609.
44. Joseph de la Vega – José, Josseph or Joseph Penso de la Vega, best known as Josseph de la Vega, was a successful Jewish merchant, poet, and philanthropist residing in 17th century Amsterdam. He became famous for his masterpiece Confusion of Confusions, the oldest book written on the stock exchange business. Joseph was born about 1650 in Espejo, a town in Córdoba province, into a family of Spanish. He was the son of Isaac Penso Félix and of Esther de la Vega, whose name he assumed. His father was a Marrano, who had made a vow in the dungeon of the Inquisition that within a year after regaining his liberty he would openly profess Judaism. This oath he fulfilled in Middelburg after his escape to Antwerp, Isaac, from the time of his marriage until his death, which occurred in February,1683, distributed 80,000 gulden as tithes from his profits. Penso had four brothers, Abraham, the eldest, who was charitable like his father, Joseph, David, and Raphael, Joseph went while still young to Amsterdam, where he was taught by Isaac Aboab da Fonseca and Moses Raphael de Aguilar. Although not an account of the process of stock trading, Penso presented the history of speculation in stocks. The dialogue format allowed the reader to understand the perspectives of the various market participants. The book is written in Spanish, its title is Confusión de Confusiones. Penso also came up with four basic rules of the market that are still of the greatest relevance today, The first rule in speculation is. Where guessing correctly is a form of witchcraft, counsel cannot be put on airs, the second rule, Accept both your profits and regrets. It is best to seize what comes to hand when it comes, and not expect that your good fortune and the favorable circumstances will last. The third rule, Profit in the market is goblin treasure, at one moment, it is carbuncles, the next it is coal, one moment diamonds. Sometimes, they are the tears that Aurora leaves on the sweet grass, at other times. The fourth rule, He who wishes to become rich from this game must have money and patience. Other of his works include, Discurso académico moral, Hecho en la Insigne Academia de los Sitibundos. Triunfos del águila y eclipses de la luna, la Rosa, Panegírico Sacro, Hecho en la Insigne Academia de los SitibundosJoseph de la Vega – This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (October 2012)
45. Financial history of the Dutch Republic – The financial history of the Dutch Republic involves the interrelated development of financial institutions in the Dutch Republic. Institutions like the Amsterdam stock exchange, the Bank of Amsterdam, in the course of time the invested capital stock generated its own income stream that caused the capital stock to assume enormous proportions. The Netherlands came to dominate the international capital market up to the crises of the end of the 18th century that caused the demise of the Dutch Republic, in contrast to that general history this is a sectoral history, concerning the fiscal and financial sector. Ironically, the Habsburg rulers themselves pushed through the reforms that gave the rebellious provinces the wherewithal to resist the power of the sovereign. Emperor Charles V needed to increase the capacity of his government to finance his many military adventures. To that end it was necessary to put in place a number of reforms that would ensure that the public debt could be adequately serviced. These permanent taxes, collected by the provinces, would enable the provinces to pay enlarged subsidies to the central government. Holland was now able to credit of its own, as the province was able to retire bond loans previously placed under compulsion as enforced loans. By this it demonstrated to potential creditors it was worthy of trust and this brought a market for voluntary credit into being that previously did not exist. This enabled Holland, and other provinces, to float bonds at a reasonable interest rate in a pool of voluntary investors. The central government did not enjoy this good credit, on the contrary, its financing needs increased tremendously after the accession of Philip II, and this led to the crisis that caused the Revolt. This brought about a revolt in the Netherlands, particularly in the northern provinces. Those were able to withstand the onslaught of the royalist forces militarily, of course, they now withheld the subsidies to the central government their taxes were supposed to finance. That central government was forced to finance the war by transfers from other Habsburg lands. This led to an increase in the size of the Spanish public debt, which that country was ultimately unable to sustain. The constitution of the new Republic, the Union-of-Utrecht treaty of 1579 and it put in place a rudimentary confederal budget system that charged the Raad van State with drafting an annual Staat van Oorlog. This budget was presented in a General Petition to the States-General for approval, the treaty next required that the tax revenues for the financing of this budget would be levied. equally in all united provinces, and at the same rate. Furthermore, it prohibited internal tariffs and other taxes discriminating against residents of other provinces, alas, these two latter provisions were never implementedFinancial history of the Dutch Republic – Courtyard of the Amsterdam Stock Exchange by Emanuel de Witte
46. Whaling in the Netherlands – Whaling in the Netherlands was a centuries-long tradition. The history of Dutch whaling begins with 17th-century exploration of Arctic fishing grounds, the current Dutch government supports a moratorium on all whaling worldwide. The beginnings of Dutch whaling are indirectly attributed to Willem Barentsz, who was a Dutch navigator and explorer, on his last voyage, Barentsz accompanied Jacob van Heemskerck as pilot, and Gerrit de Veer, the historian of the voyage, was on board as first mate. This expeditions discovery of the Arctic archipelago of Spitsbergen was to become the foundation for lucrative Dutch claims to the grounds in. In the fierce competition for the best whaling grounds, the Dutch construed that that other nations had less right to hunt whales in waters which had discovered by Dutch explorers. The development of Dutch whaling and sealing saw changes in the composition of crews, in shipbuilding technology, in governmental involvement and in the profitability of the industries. The numbers of whaling ships outfitted in the Netherlands grew rapidly—more than doubling in a decade to 70 ships in 1654, Whaling in the waters around Spitsbergen shifted after 1670 because of a modification of the whales migratory patterns. In 1684,246 Dutch whalers captured 1,185 whales in the waters off Spitsbergen, typically, whaling expeditions hunted the Bowhead whale, which is a slow-moving unhurried creature which yields plenty of oil. Their high percentage of fat also meant that they floated when dead and. Especially Föhr island has been recorded as a stronghold of whaling personnel, at the height of Dutch whaling in the year 1762,1,186 seamen from Föhr were serving on Dutch whaling vessels alone and 25% of all shipmasters on Dutch whaling vessels were people from Föhr. Dutch supremacy in whaling over other European competitors like France, Germany, amongst the political and economic consequences of the Treaty of Amiens was that control of the Cape of Good Hope was wrested from the British and restored to the Netherlands. This reanimated the prospects for profitable Dutch whaling in the antipodes, in remarks at the opening of an exhibit of paintings which, in part, focus on Dutch whaling, the Dutch Ambassador to the Court of St. We learned to harness the sea, however, like a horse and our national identity can be easily traced back to the whims of the water. It is the Dutch and Flemish masters of the 16th and 17th centuries who have indeed come close to conquering the sea by fixing its capriciousness on panel and canvas. The economic success of the Dutch Republic was inextricably linked with the sea as were the national identity. Many in the Netherlands earned their fortune in Arctic whaling, however the success of whaling scenes in Netherlandish painting cannot be explained by economic interest. Dutch culture and language were also exported by whalers from abroad who hired on Dutch vessels. E. g. the North Frisian dialect Fering adopted a number of popular Dutch and West Frisian personal name forms, and many loanwords from the Dutch language to Fering are still in use todayWhaling in the Netherlands – This late-17th-century Dutch whaling scene, Walvisvangst, was captured by a contemporary artist, Abraham Storck. The painting is in the collection of the Rijksmuseum in Amsterdam.
47. Isaac Le Maire – Isaac Le Maire was a merchant for the Vereenigde Oostindische Compagnie and later for the Austraalse Compagnie. He is best known for his constant strife with the VOC, Isaac Le Maire was born in 1558 or 1559 in Tournai. He learned the trade from his merchant brother-in-law Jacques van de Walle, Isaac had four brothers, three of them were merchants. Already in 1584 he was registered in Antwerp as a wealthy grocer, at the time, he was also captain of the company of the Antwerp militia. He rented the house of Bourgognien Schilt, but in 1585 after the fall of Antwerp he fled to the northern Netherlands, in 1585 he settled in Amsterdam. He was married in Antwerp to Maria Jacobsdr, walraven and they had 22 children, and one of them, his son Jacob, would go down in history as an explorer. In 1641 his son Maximiliaen became the first VOC chief of Dejima in Japan, initially, Isaac Le Maire was the largest shareholder in the VOC. In 1592 his name was registered for the first time in Amsterdam as a participant in the oldest marine insurance policy, in the following years he grew into the trade in European waters. Initially, he wasnt one of the wealthiest merchants, but he could make major investments by ensuring warrant positions within the direct and indirect family network, together with Peter van de Pulle and Dirck van Os he constituted a company for trading in Russia. They carried Baltic grain and timber to Spain, ships with leather, wax, fur and caviar from Archangelsk often were destined for Venice and Livorno. They also traded in bills of exchange, chartering and marine insurances, between 1594 and 1598 he had a major position in the fish trade between British ports and Spain. After Cornelis de Houtman made the first trip to the Indies from 1595 to 1597, Le Maire, like many other merchants, in 1599 he and several others in Amsterdam established the Brabant Company, which carried out two voyages to the Indies. The Brabant Company was very successful, it yielded the company 400% profit. In 1600 he decided to concentrate on trade with the East Indies, in 1601 he officially became a citizen of Amsterdam, which was no doubt because of the merger of the New Brabant Company and the Old Company into the First United East Indies Company in Amsterdam. This company, in which Le Maire was a participant, fitted out eight ships to the Indies, in 1602, at the insistence of Johan van Oldenbarnevelt, all Dutch trading companies merged into the Vereenigde Oostindische Compagnie. Le Maire applied for shares for the sum of 85,000 guilders and he got the high position of governor of the VOC. But he soon fell into conflict with the VOC and the consistory as a result of malpractice concerning the journey of Wijbrant van Warwijck in 1602, there were rumours that Le Maire intentionally did not submit receipts and other evidence of his share in the costs. The partners of the VOC let him be sued by the sheriff, the details of the offence were held secretIsaac Le Maire – Le Mairs polder near Den Helder. Map from 1641 by Claes Jansz. Visscher. (view from the north)
48. Noordsche Compagnie – The Noordsche Compagnie was a Dutch cartel in the whaling trade, founded by several cities in the Netherlands in 1614 and operating until 1642. Soon after its founding, it became entangled in conflicts with England, Denmark, France. In 1598, a whale beached at Wijk aan Zee, the animal was sold for 126 guilders and the jaw was transported to Dillenburg and given to Jan van Nassau as a gift. Van Muyden was one of the first skippers to set sail to the North, in 1613, he was the commander of the Neptunus and the Fortuyn, two ships that were sent to Spitsbergen to hunt for whales. On board were twelve or thirteen French Basques, the remaining crew of 48 men came from North Holland. On 27 January 1614, the Noordsche Compagnie was founded for a period of two years on Vlieland, tymen J. Hinlopen and Jacques Nicquet were amongst the original investors. In 1617, the charter was renewed for four years and, in 1622. Whaling was done in the summer months, ships and crew left the ports of the Dutch Republic in May or June. After a three-week journey they arrived at the waters of Spitsbergen, Jan Mayen. In August, September, or October the ships returned to the Republic, soon whaling stations were established on Jan Mayen and Spitsbergen, the best known of these being Smeerenburg. These stations saved much space in the cargohold of the ships, for years the Noordsche Compagnie controlled the monopoly for whale oil. For every expedition, participants would invest capital, when the expedition had returned, the profit would immediately be divided amongst the investors. The administration of the Noordsche Compagnie was divided into five chambers and these were relatively independent and located in Amsterdam, Hoorn, Enkhuizen, Rotterdam, and Delft. Each city had its own installations on the polar islands, in 1616 the Zeelandic Lampsin family took part in the company. From then on Vlissingen, Middelburg and Veere also had a chamber, in 1634 the charter was renewed for another eight years. In 1636 two Frisian chambers were created, Harlingen and Stavoren, the trading area of the Noordsche Compagnie stretched from the Davis Strait to Novaya Zemlya, north of Russia. The company did not make any claims to the territory, they were concerned with their trading-monopoly. Initially the company made use of Basque Harpooners and navigatorsNoordsche Compagnie – Whaling, by H. Kobell, Jr.
49. Investment fund – An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group. e. Lower transaction costs, increase the asset diversification to reduce some unsystematic risk, terminology varies with country but investment funds are often referred to as investment pools, collective investment vehicles, collective investment schemes, managed funds, or simply funds. The regulatory term is undertaking for collective investment in transferable securities, Investment funds are promoted with a wide range of investment aims either targeting specific geographic regions or specified industry sectors. Depending on the there is normally a bias towards the domestic market due to familiarity. Funds are often selected on the basis of these specified investment aims, their past investment performance, the term collective investment scheme is a legal concept deriving initially from a set of European Union Directives to regulate mutual fund investment and management. The basic aim of collective investment scheme regulation is that the products that are sold to the public are sufficiently transparent. Collective investment vehicles may be formed under company law, by legal trust or by statute, the nature of the vehicle and its limitations are often linked to its constitutional nature and the associated tax rules for the type of structure within a given jurisdiction. Typically there is, A fund manager or investment manager who manages the investment decisions, a fund administrator who manages the trading, reconciliations, valuation and unit pricing. A board of directors or trustees who safeguards the assets and ensures compliance with laws, regulations, the shareholders or unitholders who own the assets and associated income. A marketing or distribution company to promote and sell shares/units of the fund, please see below for general information on specific forms of vehicles in different jurisdictions. The net asset value or NAV is the value of a vehicles assets minus the value of its liabilities, the method for calculating this varies between vehicle types and jurisdiction and can be subject to complex regulation. An open-end fund is divided into shares which vary in price in direct proportion to the variation in value of the funds net asset value. Each time money is invested, new shares or units are created to match the prevailing price, each time shares are redeemed. In this way there is no supply or demand created for shares, a closed-end fund issues a limited number of shares in an initial public offering or through private placement. If shares are issued through an IPO, they are traded on an exchange or directly through the fund manager to create a secondary market subject to market forces. If demand for the shares is high, they may trade at a premium to net asset value, if demand is low they may trade at a discount to net asset value. Further share offerings may be made by the vehicle if demand is high although this may affect the share price, for listed funds, the added element of market forces tends to amplify the performance of the fund increasing investment risk through increased volatility. Some collective investment vehicles have the power to borrow money to further investmentsInvestment fund – The values and performance of collective funds are listed in newspapers
50. Dividend policy – Dividend policy is concerned with financial policies regarding paying cash dividend in the present or paying an increased dividend at a later stage. Whether to issue dividends, and what amount, is determined mainly on the basis of the companys unappropriated profit, If there are no NPV positive opportunities, i. e. This is the case, however there are exceptions. For example, shareholders of a stock, expect that the company will, almost by definition. Management must also choose the form of the distribution, generally as cash dividends or via a share buyback. Alternatively, some companies pay dividends from stock rather than in cash. Another confusion that pops up is regarding the extent of effect of dividends on the share price, due to this controversial nature of a dividend policy it is often called the dividend puzzle. Various models have developed to help firms analyse and evaluate the perfect dividend policy. There is no agreement between these schools of thought over the relationship between dividends and the value of the share or the wealth of the shareholders in other words. One school consists of people like James E. Walter and Myron J. Gordon, thus, they say that investors prefer those firms which pay regular dividends and such dividends affect the market price of the share. Another school linked to Modigliani and Miller holds that investors dont really choose between future gains and cash dividends, dividends paid by the firms are viewed positively both by the investors and the firms. The firms which do not pay dividends are rated in oppositely by investors thus affecting the share price, however, its exactly opposite in the case of increased uncertainty due to non-payment of dividends. Two important models supporting dividend relevance are given by Walter and Gordon, Walters model shows the relevance of dividend policy and its bearing on the value of the share. Retained earnings are the source of financing investments in the firm. The cost of capital, k e and the rate of return on investment, r are constant i. e. even if new investments decisions are taken, the firms life is endless i. e. there is no closing down. Dividends paid to the shareholders are reinvested by the shareholder further and this is referred to as the opportunity cost of the firm or the cost of capital, ke for the firm. Another situation where the firms do not pay out dividends, is when they invest the profits or retained earnings in profitable opportunities to earn returns on such investments and this rate of return r, for the firm must at least be equal to ke. If this happens then the returns of the firm is equal to the earnings of the if the dividends were paidDividend policy – Accounting
51. Corporate finance – The primary goal of corporate finance is to maximize or increase shareholder value. Investment analysis is concerned with the setting of criteria about which value-adding projects should receive investment funding, the terms corporate finance and corporate financier are also associated with investment banking. The typical role of an investment bank is to evaluate the financial needs. Thus, the corporate finance and corporate financier may be associated with transactions in which capital is raised in order to create, develop. Financial management overlaps with the function of the Accounting profession. The primary goal of management is to maximize or to continually increase shareholder value. Managers of growth companies will use most of the capital resources. When companies reach maturity levels within their industry, managers of companies will use surplus cash to payout dividends to shareholders. Choosing between investment projects will be based upon several inter-related criteria, Corporate management seeks to maximize the value of the firm by investing in projects which yield a positive net present value when valued using an appropriate discount rate in consideration of risk. These projects must also be financed appropriately, if no growth is possible by the company and excess cash surplus is not needed to the firm, then financial theory suggests that management should return some or all of the excess cash to shareholders. This capital budgeting is the planning of value-adding, long-term corporate financial projects relating to investments funded through, Management must allocate the firms limited resources between competing opportunities. Investments should be made on the basis of value-added to the future of the corporation, projects that increase a firms value may include a wide variety of different types of investments, including but not limited to, expansion policies, or mergers and acquisitions. Achieving the goals of corporate finance requires that any corporate investment be financed appropriately, the sources of financing are, generically, capital self-generated by the firm and capital from external funders, obtained by issuing new debt and equity. As above, since both hurdle rate and cash flows will be affected, the mix will impact the valuation of the firm. Financing a project through debt results in a liability or obligation that must be serviced, equity financing is less risky with respect to cash flow commitments, but results in a dilution of share ownership, control and earnings. Management must attempt to match the long-term financing mix to the assets being financed as closely as possible, other techniques, such as securitization, or hedging using interest rate- or credit derivatives, are also common. See Asset liability management, Treasury management, Credit risk, Interest rate risk, however economists have developed a set of alternative theories about how managers allocate a corporations finances. Also, Capital structure substitution theory hypothesizes that management manipulates the capital such that earnings per share are maximizedCorporate finance – Corporate finance
52. Dutch Golden Age – The Dutch Golden Age was a period in Dutch history, roughly spanning the 17th century, in which Dutch trade, science, military, and art were among the most acclaimed in the world. The first half is characterized by the Eighty Years War which ended in 1648, the Golden Age continued in peacetime during the Dutch Republic until the end of the century. The Netherlandss transition from a possession of the Holy Roman Empire in the 1590s to the foremost maritime, in 1568, the Seven Provinces that later signed the Union of Utrecht started a rebellion against Philip II of Spain that led to the Eighty Years War. Antwerp fell on August 17,1585 after a siege, the United Provinces fought on until the Twelve Years Truce, which did not end the hostilities. Under the terms of the surrender of Antwerp in 1585, the Protestant population were given four years to settle their affairs before leaving the city, similar arrangements were made in other places. Protestants were especially well-represented among the craftsmen and rich merchants of the port cities of Bruges, Ghent. More moved to the north between 1585 and 1630 than Catholics moved in the direction, although there were also many of these. Many of those moving north settled in Amsterdam, transforming what was a port into one of the most important ports. The Pilgrim Fathers also spent time there before their voyage to the New World, Ronald Findlay and Kevin H. O’Rourke contribute part of the Dutch ascendancy to its Calvinistic ethic, which promoted thrift and education. This contributed to the lowest interest rates and the highest literacy rates in Europe, several other factors also contributed to the flowering of trade, industry, the arts and the sciences in the Netherlands during this time. A necessary condition was a supply of energy from windmills and from peat. The invention of the sawmill enabled the construction of a massive fleet of ships for worldwide trading. In 1602 the Dutch East India Company was founded and it was the first-ever multinational corporation, financed by shares that established the first modern stock exchange. This company received a Dutch monopoly on Asian trade and would keep this for two centuries and it became the worlds largest commercial enterprise of the 17th century. Spices were imported in bulk and brought huge profits, due to the efforts and risks involved and this is remembered to this day in the Dutch word peperduur, meaning something is very expensive, reflecting the prices of spices at the time. To finance the trade within the region, the Bank of Amsterdam was established in 1609. According to Ronald Findlay and Kevin H. O’Rourke, geography favored the Dutch Republic and they write, The foundations were laid by taking advantage of location, midway between the Bay of Biscay and the Baltic. The Dutch share of European shipping tonnage was enormous, well over half during most of the period of their ascendancy, from here the Dutch traded between China and Japan and paid tribute to the ShogunDutch Golden Age – Rembrandt The Night Watch (1642)
53. United States housing bubble – The United States housing bubble was a real estate bubble affecting over half of the U. S. states. Housing prices peaked in early 2006, started to decline in 2006 and 2007, on December 30,2008, the Case-Shiller home price index reported its largest price drop in its history. In October 2007, the U. S. Secretary of the Treasury called the bursting housing bubble the most significant risk to our economy, Land prices contributed much more to the price increases than did structures. This can be seen in the building cost index in Fig.1, an estimate of land value for a house can be derived by subtracting the replacement value of the structure, adjusted for depreciation, from the home price. Using this methodology, Davis and Palumbo calculated land values for 46 U. S. metro areas, Housing bubbles may occur in local or global real estate markets. This may be followed by decreases in home prices that result in many owners finding themselves in a position of negative equity—a mortgage debt higher than the value of the property, the underlying causes of the housing bubble are complex. Factors include tax policy, historically low interest rates, tax lending standards, failure of regulators to intervene and this bubble may be related to the stock market or dot-com bubble of the 1990s. This bubble roughly coincides with the real estate bubbles of the United Kingdom, Hong Kong, Spain, Poland, Hungary and South Korea. While bubbles may be identifiable in progress, bubbles can be measured only in hindsight after a market correction. In 2001, Alan Greenspan dropped interest rates to a low 1% in order to jump the economy after the. com bubble and it was then bankers and other Wall Street firms started borrowing money due to its inexpensiveness. The mortgage and credit crisis was caused by the inability of a number of home owners to pay their mortgages as their low introductory-rate mortgages reverted to regular interest rates. Greenspan warned of large double digit declines in home values larger than most people expect, the impact of booming home valuations on the U. S. Prior to that, Robert Prechter wrote about it extensively as did Professor Shiller in his publication of Irrational Exuberance in the year 2000. Hunn wrote, e can profit from the collapse of the credit bubble, however, real estate has not yet joined in a decline of prices fed by selling. Unless you have a specific reason to believe that real estate will outperform all other investments for several years. Many contested any suggestion that there could be a bubble, particularly at its peak from 2004 to 2006. Claims that there was no warning of the crisis were further repudiated in an August 2008 article in The New York Times, in his memo, Mr. Andrukonis wrote that these loans would likely pose an enormous financial and reputational risk to the company and the country. The article revealed that more than two-dozen high-ranking executives said that Mr. Syron had simply decided to ignore the warnings, other cautions came as early as 2001, when the late Federal Reserve governor Edward Gramlich warned of the risks posed by subprime mortgagesUnited States housing bubble – Bank run on the U.K.'s Northern Rock Bank by customers queuing to withdraw savings in a panic related to the U.S. subprime crisis.
54. Coast (TV series) – Coast is a BBC documentary series first broadcast on BBC Two television in 2005. A second series started on 26 October 2006, a third in early 2007 and it covers various subjects relating to both the natural and social history of the British coastline and also more recently, that of Britains near neighbours. A fifth series was aired in 2010, followed by a sixth in 2011, a seventh series aired in 2012 and followed a different format from previous series. Series eight started in 2013 while series nine aired in 2014, the series is a collaboration between the Open University and BBC Productions, Birmingham. In December 2013, the first reversion of the series format, hosted by Neil Oliver, it was the second highest rating show in the history of the channel. It started airing on BBC Two from 14 May 2014, series 2 was aired in 2015, Coast New Zealand aired in 2016. Series 4 reintroduced the circular element, starting at Whitstable and ending at Hull, though with visits to Ireland, Normandy, the format of the seventh series abandoned the geographical element and instead each episode focused on a particular theme and featured locations from around the British Isles. All but one of the episodes in the first series ended with Nicholas Crane stating that in the British Isles, Remember, Neil Oliver closed the fifth series with the same statement. Series 4 onwards were simulcast on the BBC HD channel, as the aerial shots from the Coast programmes are made in high-definition, they are also used in this way on BBC HD. Episodes from old series have shown on Yesterday. Series 5 was shown overseas before being shown on the BBC, Series 1 to 5 of Coast have been released on Region 2 DVD by Contender Home Entertainment, or, following their acquisition, by E1 Entertainment. Series 6 onwards have been released on Region 2 DVD and Region B Blu-ray by Acorn Media UK, numerous box sets have been released, including one which packaged Series 1 with another BBC documentary, A Picture of Britain. The first series of Coast was originally aired on BBC2 during the summer of 2005, the series follows a circumnavigation of the coastline, starting and finishing in Dover. Series 1 is the series yet to include more than eight episodes. A review episode was shown on 2 September 2005, looking back over the series highlights, the second series of Coast was originally aired on BBC2 during the autumn of 2006. Whilst the series starts in Dover and finishes in nearby Margate and it is the first series to feature the Republic of Ireland. The subtitle of the series is The Journey Continues, the third series of Coast was originally aired on BBC2 during the summer of 2007. In common with the series, the journey does not follow a circular courseCoast (TV series) – Coast
55. United States housing market correction – A real estate bubble is a type of economic bubble that occurs periodically in local, regional, national or global real estate markets. As early as 2003 Shiller questioned whether or not there was, united States housing prices experienced a major market correction after the housing bubble that peaked in early 2006. Prices of real estate then adjusted downwards in late 2006, causing a loss of market liquidity, chief economist Mark Zandi of the research firm Moodys Economy. com predicted a crash of double-digit depreciation in some U. S. cities by 2007–2009. Dean Baker of the Center for Economic and Policy Research was the first economist to identify the housing bubble, investor Peter Schiff acquired fame in a series of TV appearances where he opposed a multitude of financial experts and claimed that a bust was to come. The housing bubble was partly subsidized by government-sponsored entities like Fannie Mae and Freddie Mac, fortune magazine labeled many previously strong housing markets as Dead Zones, other areas were classified as Danger Zones and Safe Havens. Fortune also dispelled four myths about the future of home prices, in Boston, year-over-year prices dropped, sales fell, inventory increased, foreclosures were up, and the correction in Massachusetts was called a hard landing. The previously booming housing markets in Washington, D. C, san Diego, California, Phoenix, Arizona, and other cities stalled as well. The Arizona Regional Multiple Listing Service showed that in summer 2006, several home builders revised their forecasts sharply downward during the summer of 2006, e. g. D. R. Horton cut its yearly earnings forecast by one-third in July 2006, home Construction Index was down over 40% as of mid-August 2006. Six months later on 10 April 2007, Kara Homes sold unfinished developments, causing prospective buyers from the year to lose deposits. As the housing market began to soften from winter 2005 through summer 2006, the Financial Times warned of the impact on the U. S. economy of the hard edge in the soft landing scenario, saying A slowdown in these red-hot markets is inevitable. It may be gentle, but it is impossible to rule out a collapse of sentiment, the effect on the worlds economy could be depressing indeed. It would be difficult to characterize the position of home builders as other than in a hard landing, angelo Mozilo, CEO of Countrywide Financial, said Ive never seen a soft-landing in 53 years, so we have a ways to go before this levels out. I have to prepare the company for the worst that can happen, following these reports, Lereah admitted that he expects home prices to come down 5% nationally, and said that some cities in Florida and California could have hard landings. The plunge in sales was the steepest since 1989. The new home market also suffered, the biggest year over year drop in median home prices since 1970 occurred in April 2007. Median prices for new homes fell 10.9 percent according to the U. S. Department of Commerce. Based on slumping sales and prices in August 2006, economist Nouriel Roubini warned that the sector was in free fall and would derail the rest of the economyUnited States housing market correction – Incomplete housing development near Houston, Texas.
56. Causes of the United States housing bubble – In July 1978, Section 121 allowed for a $100,000 one-time exclusion in capital gains for sellers 55 years or older at the time of sale. In 1981, the Section 121 exclusion was increased from $100,000 to $125,000, the Tax Reform Act of 1986 eliminated the tax deduction for interest paid on credit cards. As mortgage interest remained deductible, this encouraged the use of equity through refinancing, second mortgages. This made housing the only investment which escaped capital gains and these tax laws encouraged people to buy expensive, fully mortgaged homes, as well as invest in second homes and investment properties, as opposed to investing in stocks, bonds, or other assets. Historically, the sector was heavily regulated by the Glass–Steagall Act which separated commercial. It also set limits on Banks interest rates and loans. Starting in the 1980s, considerable deregulation took place in banking, Banks were deregulated through, The Depository Institutions Deregulation and Monetary Control Act of 1980. Germain Depository Institutions Act of 1982, Federal Home Loan Bank Board allowed federal S&Ls to originate Adjustable-rate mortgages in 1979 and in 1981 the Comptroller of the Currency extended the privilege to national banks. Several authors single out the banking deregulation by the Gramm–Leach–Bliley Act as significant, nobel Prize-winning economist Joseph Stiglitz has also argued that GLB helped to create the crisis. An article in The Nation has made the same argument, economists Robert Ekelund and Mark Thornton have also criticized the Act as contributing to the crisis. Critics have also noted defacto deregulation through a shift in mortgage securitization market share from more highly regulated Government Sponsored Enterprises to less regulated investment banks, however, many economists, analysts and politicians reject the criticisms of the GLB legislation. These were applied through the Community Reinvestment Act and government sponsored entities Fannie Mae, journalist Daniel Indiviglio argues the two GSEs played a major role, while not denying the importance of Wall Street and others in the private sector in creating the collapse. The Housing and Community Development Act of 1992 established an affordable housing loan purchase mandate for Fannie Mae and Freddie Mac, initially, the 1992 legislation required that 30 percent or more of Fannie’s and Freddie’s loan purchases be related to affordable housing. However, HUD was given the power to set future requirements, in 1995 HUD mandated that 40 percent of Fannie and Freddie’s loan purchases would have to support affordable housing. In 1996, HUD directed Freddie and Fannie to provide at least 42% of their financing to borrowers with income below the median in their area. This target was increased to 50% in 2000 and 52% in 2005, under the Bush Administration HUD continued to pressure Fannie and Freddie to increase affordable housing purchases – to as high as 56 percent by the year 2008. To satisfy these mandates, Fannie and Freddie eventually announced low-income, critics argue that, to meet these commitments, Fannie and Freddie promoted a loosening of lending standards - industry-wide. He also charged the Federal Reserve with ignoring the impact of the CRACauses of the United States housing bubble – Inflation-adjusted housing prices in Japan (1980–2005) compared to home price appreciation the United States, Britain, and Australia (1995–2005).
57. Cornelis Guldewagen – Cornelis Guldewagen, was a Haarlem mayor, known best today for his portrait by Frans Hals. He was born in Haarlem and was admitted to the Haarlem regency in 1625, in 1627 he married Agatha van Hoorn, the sister of Andries van Hoorn, and together they had 11 children. This painting was documented by Hofstede de Groot in 1910, who wrote,183, cornells Guldewagen, Burgomaster of Haarlem in 1642. A man of sixty with moustache and imperial, seated, facing the spectator and he is in black with a white collar and wristbands, and wears a black cap. His bare right hand is on his breast and his gloved left hand holds the other glove. Probably a small picture, painted between 1655 and 1660, described from a water-colour copy by C. van Noorden in the Haarlem archives, which occurred in the sale Ekama of Haarlem, Amsterdam, April 8,1891. See Moes, Iconographia Batava, No.2994, exhibited at the Royal Academy Winter Exhibition, London,1871. Then in the Schwabe collection, London, cornelis Guldewagen in Krannert Art MuseumCornelis Guldewagen – Cornelis Guldewagen
58. Beanie Babies – Beanie Babies are a line of stuffed animals, made by Ty Warner Inc. which was later renamed as Ty Inc. in November 1991. Each toy is stuffed with plastic rather than conventional stuffing, giving Beanie Babies a flexible feel. In a rare interview Warner said The whole idea was it looked real because it moved, during the later half of the 1990s the toy emerged as a major fad. They were not in production until 1994. Sales were slow at first to the point that by 1995 many retailers refused to buy the products in the bundles TY offered them while others refused to buy them in any form. The popularity soon grew however, first starting locally in Chicago before growing into a national craze, in 1996, Ty Inc. released a new product called Teenie Beanies, a miniature offshoot of the original Beanie Babies line. They were sold alongside McDonalds Happy Meals to celebrate that products 17th anniversary, Ty, Inc. stopped producing the product in December 1999, but consumer demand led them to reconsider. Production restarted in 2000 with a Beanie Baby named The Beginning, in early 2008, Ty released a new version of Beanie Babies called Beanie Babies 2.0. The purchase of a Beanie Baby 2.0 provided its owner with a code to access a Beanie Babies interactive website, the website is no longer able to be seen, as it shut down. Beanie Babies began to emerge as popular collectibles in late 1995, Ty systematically retired various designs, and many people assumed that all retired designs would rise in value the way that early retirees had. The craze lasted through 1999 and slowly declined after the Ty company announced that they would no longer be making Beanie Babies, at its height of popularity people would flip Beanies at as much as 1, 000% on eBay. Indeed, at the height, Beanies made up 10% of eBays sales, some collectors insured their purchases for a price in the thousands. Warner was keenly aware that the Beanie Babies bubble could burst, none of these lines did as well as Beanie Babies although they kept the company alive after the fad ended and eventually some became successful in their own right. Beanie Babies are deliberately under stuffed and this led to a criticism that the toys looked cheap however this set them apart from most stuffed animals on the market which could not be posed easily. Ty Warner has said that this method made the toys look real. Another important design element is that of the tag, since the beginning, Beanie Babies have included two tags for identification, a heart-shaped swing tag at the top, and a fabric tush tag at the bottom. Both tags have been redesigned completely over time, between 1994 and 1996, the swing tags had To and From blanks in them for use as gifts. Starting in early 1996, the tags include four-line poems related to the Beanie Baby, the poem and birthday concept was created by Lina Trivedi who is credited as authoring the poems on the first 136 poems that were introduced to the marketplaceBeanie Babies – Sizzle the Bear, one of many teddy bear varieties of Beanie Babies
59. Carolus Clusius – Charles de lÉcluse, LEscluse, or Carolus Clusius, seigneur de Watènes, was a Flemish doctor and pioneering botanist, perhaps the most influential of all 16th-century scientific horticulturists. Clusius studied at Montpellier, France, with the famous professor, Guillaume Rondelet. After leaving Vienna in the late 1580s he established himself in Frankfurt am Main, Clusius laid the foundations of Dutch tulip breeding and the bulb industry today. His first publication was a French translation of Rembert Dodoenss herbal and his Antidotarium sive de exacta componendorum miscendorumque medicamentorum ratione ll. He contributed as well to Abraham Orteliuss map of Spain, Clusius translated several contemporary works in natural science. Clusius was also among the first to study the flora of Austria and he was the first botanist to climb the Ötscher and the Schneeberg in Lower Austria, which was also the first documented ascent of the latter. His illustrated works form an important chapter in sixteenth century natural history and his contribution to the study of alpine plants has led to many of them being named in his honour, such as Gentiana clusii, Potentilla clusiana and Primula clusiana. The genus Clusia also honours Clusius, rariorum alioquot stirpium per Hispanias observatarum historia, libris duobus expressas. Rariorum plantarum historia, quae accesserint, proxima pagina docebit, edited and Introduction by Garry D. Gitzen, Fort Nehalem Publishing, Wheeler, Oregon Clusius, Carolus. Online edition of the correspondence of Carolus Clusius at Huygens INGCarolus Clusius – The only known painted portrait of Clusius. It was made in 1585 when Clusius was in Vienna. The coat of arms of Clusius is on the left.
60. Bank run – When they transfer funds to another institution it may be characterised as a capital flight. As a bank run progresses, it generates its own momentum, as more people withdraw cash and this can destabilize the bank to the point where it runs out of cash and thus faces sudden bankruptcy. A systemic banking crisis is one where all or almost all of the capital in a country is wiped out. The resulting chain of bankruptcies can cause an economic recession as domestic businesses. According to former U. S. Federal Reserve chairman Ben Bernanke, the Great Depression was caused by the Federal Reserve System, and much of the economic damage was caused directly by bank runs. The cost of cleaning up a banking crisis can be huge, with fiscal costs averaging 13% of GDP. Several techniques have been used to try to prevent bank runs or mitigate their effects. S, Federal Deposit Insurance Corporation, and after a run has started, a temporary suspension of withdrawals. These techniques do not always work, for example, even with deposit insurance, Bank runs first appeared as part of cycles of credit expansion and its subsequent contraction. In the 16th century onwards, English goldsmiths issuing promissory notes suffered severe failures due to bad harvests, plummeting parts of the country into famine and unrest. Other examples are the Dutch Tulip manias, the British South Sea Bubble, the French Mississippi Company, the post-Napoleonic depression, Bank runs have also been used to blackmail individuals or governments. In 1832, for example, the British government under the Duke of Wellington overturned a majority government on the orders of the king, William IV, to prevent reform. Wellesleys actions angered reformers, and they threatened a run on the banks under the rallying cry Stop the Duke, many of the recessions in the United States were caused by banking panics. The Great Depression contained several banking crises consisting of runs on multiple banks from 1929 to 1933, in December, New York City experienced massive bank runs that were contained to the many branches of a single bank. Philadelphia was hit a week later by bank runs that affected several banks, but were contained by quick action by the leading city banks. Withdrawals became worse after financial conglomerates in New York and Los Angeles failed in prominently-covered scandals, much of the US Depressions economic damage was caused directly by bank runs, though Canada had no bank runs during this same era due to different banking regulations. Bank runs continued to plague the United States for the several years. City-wide runs hit Boston, Chicago, Toledo, and St. Louis, among others. Institutions put into place during the Depression have prevented runs on U. S. commercial banks since the 1930s, even under such as the U. S. savingsBank run – Depositors clamor to withdraw their savings from a bank in Berlin, 13 July 1931