1.
New York Stock Exchange
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The New York Stock Exchange, is an American stock exchange located at 11 Wall Street, Lower Manhattan, New York City, New York. It is by far the worlds largest stock exchange by market capitalization of its companies at US$19.3 trillion as of June 2016. The average daily trading value was approximately US$169 billion in 2013, the NYSE trading floor is located at 11 Wall Street and is composed of 21 rooms used for the facilitation of trading. A fifth trading room, located at 30 Broad Street, was closed in February 2007, the main building and the 11 Wall Street building were designated National Historic Landmarks in 1978. The NYSE is owned by Intercontinental Exchange, an American holding company that it also lists, previously, it was part of NYSE Euronext, which was formed by the NYSEs 2007 merger with Euronext. NYSE and Euronext now operate as divisions of Intercontinental Exchange, the NYSE has been the subject of several lawsuits regarding fraud or breach of duty and in 2004 was sued by its former CEO for breach of contract and defamation. The earliest recorded organization of securities trading in New York among brokers directly dealing with each other can be traced to the Buttonwood Agreement, previously securities exchange had been intermediated by the auctioneers who also conducted more mundane auctions of commodities such as wheat and tobacco. In 1817 the stockbrokers of New York operating under the Buttonwood Agreement instituted new reforms, after sending a delegation to Philadelphia to observe the organization of their board of brokers, restrictions on manipulative trading were adopted as well as formal organs of governance. Several locations were used between 1817 and 1865, when the present location was adopted, the invention of the electrical telegraph consolidated markets, and New Yorks market rose to dominance over Philadelphia after weathering some market panics better than other alternatives. The Civil War greatly stimulated speculative securities trading in New York, by 1869 membership had to be capped, and has been sporadically increased since. The latter half of the century saw rapid growth in securities trading. Securities trade in the nineteenth and early twentieth centuries was prone to panics. The Stock Exchange Luncheon Club was situated on the floor from 1898 until its closure in 2006. The main building, located at 18 Broad Street, between the corners of Wall Street and Exchange Place, was designated a National Historic Landmark in 1978, as was the 11 Wall Street building. The NYSE announced its plans to merge with Archipelago on April 21,2005, NYSEs governing board voted to merge with rival Archipelago on December 6,2005, and became a for-profit, public company. It began trading under the name NYSE Group on March 8,2006, Wall Street is the leading US money center for international financial activities and the foremost US location for the conduct of wholesale financial services. It comprises a matrix of wholesale financial sectors, financial markets, financial institutions, the principal sectors are securities industry, commercial banking, asset management, and insurance. Prior to the acquisition of NYSE Euronext by the ICE in 2013, Marsh Carter was the Chairman of the NYSE, presently, the chairman is Jeffrey Sprecher
2.
Wall Street
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Wall Street is an eight-block-long street running roughly northwest to southeast from Broadway to South Street, at the East River, in the Financial District of Lower Manhattan in New York City. Over time, the term has become a metonym for the markets of the United States as a whole. Several other major exchanges have or had headquarters in the Wall Street area, including the New York Mercantile Exchange, the New York Board of Trade, there are varying accounts about how the Dutch-named de Walstraat got its name. A conflicting explanation is that Wall Street was named after Walloons— the Dutch name for a Walloon is Waal, among the first settlers that embarked on the ship Nieu Nederlandt in 1624 were 30 Walloon families. The Dutch word wal can be translated as rampart, however, even some English maps show the name as Waal Straat, and not as Wal Straat. But soon after that, the Dutch governor, Kieft, sent his men out there one night, few of them escaped, but they spread the story of what had been done, and this did much to antagonize all the remaining tribes against all the white settlers. Shortly after, Nieuw Amsterdam erected a palisade for defense against its now enraged red neighbors. The space between the walls is now called Wall Street, and its spirit is still that of a bulwark against the people. In the 1640s basic picket and plank fences denoted plots and residences in the colony, in 1685, surveyors laid out Wall Street along the lines of the original stockade. In these early days, local merchants and traders would gather at disparate spots to buy and sell shares and bonds, Wall Street was also the marketplace where owners could hire out their slaves by the day or week. The rampart was removed in 1699, the slave market operated from 1711 to 1762 at the corner of Wall and Pearl Streets. It was a structure with a roof and open sides, although walls may have been added over the years. The city directly benefited from the sale of slaves by implementing taxes on every person who was bought, in the late 18th century there was a buttonwood tree at the foot of Wall Street under which traders and speculators would gather to trade securities. The benefit was being in proximity to each other, in 1792, traders formalized their association with the Buttonwood Agreement which was the origin of the New York Stock Exchange. The idea of the agreement was to make the more structured and without the manipulative auctions. Persons signing the agreement agreed to each other a standard commission rate, persons not signing could still participate. In 1789 Wall Street was the scene of the United States first presidential inauguration when George Washington took the oath of office on the balcony of Federal Hall on April 30,1789 and this was also the location of the passing of the Bill Of Rights. Alexander Hamilton, who was the first Treasury secretary and architect of the early United States financial system, is buried in the cemetery of Trinity Church, in the first few decades, both residences and businesses occupied the area, but increasingly business predominated
3.
Stock exchange
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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 bonds
4.
Share (finance)
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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 depository
5.
Stock market
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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 discovery
6.
Macroeconomics
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Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole. This includes national, regional, and global economies, Macroeconomics and microeconomics, a pair of terms coined by Ragnar Frisch, are the two most general fields in economics. Macroeconomic models and their forecasts are used by governments to assist in the development, Macroeconomics encompasses a variety of concepts and variables, but there are three central topics for macroeconomic research. Macroeconomic theories usually relate the phenomena of output, unemployment, outside of macroeconomic theory, these topics are also important to all economic agents including workers, consumers, and producers. National output is the amount of everything a country produces in a given period of time. Everything that is produced and sold generates an equal amount of income, therefore, output and income are usually considered equivalent and the two terms are often used interchangeably. Output can be measured as total income, or it can be viewed from the side and measured as the total value of final goods. Macroeconomic output is measured by gross domestic product or one of the other national accounts. Economists interest in long-run increases in output study economic growth, advances in technology, accumulation of machinery and other capital, and better education and human capital all lead to increased economic output over time. However, output does not always increase consistently, business cycles can cause short-term drops in output called recessions. Economists look for macroeconomic policies that prevent economies from slipping into recessions, the amount of unemployment in an economy is measured by the unemployment rate, i. e. the percentage of workers without jobs in the labor force. The unemployment rate in the force only includes workers actively looking for jobs. People who are retired, pursuing education, or discouraged from seeking work by a lack of job prospects are excluded, unemployment can be generally broken down into several types that are related to different causes. Classical unemployment theory suggests that unemployment occurs when wages are too high for employers to be willing to hire more workers, other more modern economic theories suggest that increased wages actually decrease unemployment by creating more consumer demand. Structural unemployment covers a variety of causes of unemployment including a mismatch between workers skills and the skills required for open jobs. Large amounts of unemployment can occur when an economy is transitioning industries. While some types of unemployment may occur regardless of the condition of the economy, Okuns law represents the empirical relationship between unemployment and economic growth. The original version of Okuns law states that a 3% increase in output would lead to a 1% decrease in unemployment, a general price increase across the entire economy is called inflation
7.
Economic indicator
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An economic indicator is a statistic about an economic activity. Economic indicators allow analysis of performance and predictions of future performance. One application of economic indicators is the study of business cycles, Economic indicators include various indices, earnings reports, and economic summaries. The leading business cycle dating committee in the United States of America is the National Bureau of Economic Research, the Bureau of Labor Statistics is the principal fact-finding agency for the U. S. government in the field of labor economics and statistics. Other producers of economic indicators includes the United States Census Bureau, Economic indicators can be classified into three categories according to their usual timing in relation to the business cycle, leading indicators, lagging indicators, and coincident indicators. Leading indicators are indicators that usually, but not always, change before the economy as a whole changes and they are therefore useful as short-term predictors of the economy. Other leading indicators include the index of consumer expectations, building permits, the Conference Board publishes a composite Leading Economic Index consisting of ten indicators designed to predict activity in the U. S. economy six to nine months in future. Average weekly jobless claims for unemployment insurance — The CB reverses the value of this component from positive to negative because a positive reading indicates a loss in jobs. The initial jobless-claims data is sensitive to business conditions than other measures of unemployment. The new orders decrease inventory and contribute to unfilled orders, a precursor to future revenue, vendor performance — This component measures the time it takes to deliver orders to industrial companies. Vendor performance leads the business cycle because an increase in time can indicate rising demand for manufacturing supplies. Vendor performance is measured by a survey from the National Association of Purchasing Managers. This diffusion index measures one-half of the respondents reporting no change and this measure is the producers counterpart of new orders for consumer goods/materials component. Building permits for new housing units. The Standard & Poors 500 stock index — The S&P500 is considered a leading indicator because changes in stock prices reflect investors expectations for the future of the economy and interest rates. Money Supply — The money supply measures demand deposits, travelers checks, savings deposits, currency, money market accounts, here, M2 is adjusted for inflation by means of the deflator published by the federal government in the GDP report. Bank lending, a factor contributing to account deposits, usually declines when inflation increases faster than the money supply, thus, an increase in demand deposits will indicate expectations that inflation will rise, resulting in a decrease in bank lending and an increase in savings. Interest rate spread — The interest rate spread is often referred to as the curve and implies the expected direction of short-, medium-
8.
Trillion (short scale)
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This list contains selected positive numbers in increasing order, including counts of things, dimensionless quantity and probabilities. Mathematics – Writing, Approximately 10−183,800 is a rough first estimate of the probability that a monkey, however, taking punctuation, capitalization, and spacing into account, the actual probability is far lower, around 10−360,783. Computing, The number 1×10−6176 is equal to the smallest positive non-zero value that can be represented by a quadruple-precision IEEE decimal floating-point value, Computing, The number 6. 5×10−4966 is approximately equal to the smallest positive non-zero value that can be represented by a quadruple-precision IEEE floating-point value. Computing, The number 3. 6×10−4951 is approximately equal to the smallest positive non-zero value that can be represented by a 80-bit x86 double-extended IEEE floating-point value. Computing, The number 1×10−398 is equal to the smallest positive non-zero value that can be represented by a double-precision IEEE decimal floating-point value, Computing, The number 4. 9×10−324 is approximately equal to the smallest positive non-zero value that can be represented by a double-precision IEEE floating-point value. Computing, The number 1×10−101 is equal to the smallest positive non-zero value that can be represented by a single-precision IEEE decimal floating-point value, Mathematics, The probability in a game of bridge of all four players getting a complete suit is approximately 4. 47×10−28. ISO, yocto- ISO, zepto- Mathematics, The probability of matching 20 numbers for 20 in a game of keno is approximately 2.83 × 10−19. ISO, atto- Mathematics, The probability of rolling snake eyes 10 times in a row on a pair of dice is about 2. 74×10−16. ISO, micro- Mathematics – Poker, The odds of being dealt a flush in poker are 649,739 to 1 against. Mathematics – Poker, The odds of being dealt a flush in poker are 72,192 to 1 against. Mathematics – Poker, The odds of being dealt a four of a kind in poker are 4,164 to 1 against, for a probability of 2.4 × 10−4. ISO, milli- Mathematics – Poker, The odds of being dealt a full house in poker are 693 to 1 against, for a probability of 1.4 × 10−3. Mathematics – Poker, The odds of being dealt a flush in poker are 507.8 to 1 against, Mathematics – Poker, The odds of being dealt a straight in poker are 253.8 to 1 against, for a probability of 4 × 10−3. Physics, α =0.007297352570, the fine-structure constant, ISO, deci- Mathematics – Poker, The odds of being dealt only one pair in poker are about 5 to 2 against, for a probability of 0.42. Demography, The population of Monowi, a village in Nebraska. Mathematics, √2 ≈1.414213562373095489, the ratio of the diagonal of a square to its side length. Mathematics, φ ≈1.618033988749895848, the golden ratio Mathematics, the number system understood by most computers, human scale, There are 10 digits on a pair of human hands, and 10 toes on a pair of human feet. Mathematics, The number system used in life, the decimal system, has 10 digits,0,1,2,3,4,5,6,7,8,9
9.
Real versus nominal value (economics)
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In economics, a real value of a good or other entity has been adjusted for inflation, enabling comparison of quantities as if prices had not changed. Changes in real terms therefore exclude the effect of inflation, in contrast with a real value, a nominal value has not been adjusted for inflation, and so changes in nominal value reflect at least in part the effect of inflation. A representative collection of goods, or commodity bundle, is used for comparison purposes, to measure inflation. The nominal value of the commodity bundle in a year depends on prices current at the time, whereas the real value of the commodity bundle, if it is truly representative. A price index is calculated relative to a base year, indices are typically normalized at 100 in the base year. Starting from a year, a price index Pt represents the price of the commodity bundle over time t. In base year zero, P0 is set to 100, if for example the base year is 1992, real values are expressed in constant 1992 dollars, based at 100 for 1992. Also imagine for example, that the price of the commodity bundle has increased in the first year by 1%, the real value is the value expressed in terms of purchasing power in the base year. The index price divided by its base-year value P t / P0 gives the growth factor of the price index, Real values can be found by dividing the nominal value by the growth factor of a price index. The real growth rate r t is the change from one period to the next of a nominal quantity Q t in real terms and it measures by how much the buying power of the quantity has changed. So 1 + r t = =1 + g t − i t − g t i t + i t 2 + higher order terms. Hence as an approximation, r t = g t − i t The bundle of goods used to measure the Consumer Price Index is applicable to consumers. So for wage earners as consumers, a way to measure real wages is to divide the nominal wage by the growth factor in the CPI. Gross domestic product is a measure of aggregate output, nominal GDP in a particular period reflects prices which were current at the time, whereas real GDP compensates for inflation. Price indices and the U. S. National Income and Product Accounts are constructed from bundles of commodities, in the case of GDP, a suitable price index is the GDP price index. In the U. S. National Income and Product Accounts, nominal GDP is called GDP in current dollars, looking back into the past, the ex post real interest rate is approximately the historical nominal interest rate minus inflation. Looking forward into the future, the real interest rate is approximately the nominal interest rate minus the expected inflation rate. Not only time-series data, as above, but also data which depends on prices which may vary geographically for example
10.
Company
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A company, abbreviated co. is a legal entity made up of an association of people, be they natural, legal, or a mixture of both, for carrying on a commercial or industrial enterprise. Company members share a common purpose and unite in order to focus their various talents and organize their collectively available skills or resources to achieve specific, because companies are legal persons, they also may associate and register themselves as companies – often known as a corporate group. When the company closes it may need a certificate to avoid further legal obligations. A company can be defined as a person, invisible, intangible, created by or under law, with a discrete legal personality, perpetual succession. It is not affected by the death, insanity, or insolvency of an individual member, by 1303, the word referred to trade guilds. Usage of company to mean business association was first recorded in 1553, in English law and in legal jurisdictions based upon it, a company is a body corporate or corporation company registered under the Companies Acts or similar legislation. It may be referred to as a firm, in the US, a company is not necessarily a corporation. Commonly used where companies are formed for non-commercial purposes, such as clubs or charities, the members guarantee the payment of certain amounts if the company goes into insolvent liquidation, but otherwise they have no economic rights in relation to the company. This type of company is common in England, a company limited by guarantee may be with or without having share capital. The most common form of used for business ventures. This type of company is common in England and many English-speaking countries, a company limited by shares may be a publicly traded company or a privately held company. A company limited by guarantee with a share capital, a hybrid entity, usually used where the company is formed for non-commercial purposes, but the activities of the company are partly funded by investors who expect a return. This type of company may no longer be formed in the UK, a company—statutorily authorized in certain states—that is characterized by limited liability, management by members or managers, and limitations on ownership transfer, i. e. L. L. C. LLC structure has been called hybrid in that it combines the characteristics of a corporation, an unlimited company with or without a share capital. A hybrid entity, a company where the liability of members or shareholders for the debts of the company are not limited, in this case doctrine of veil of incorporation does not apply. Less common types of companies are, Companies formed by letters patent, most corporations by letters patent are corporations sole and not companies as the term is commonly understood today. Before the passing of modern companies legislation, these were the types of companies. Now they are rare, except for very old companies that still survive
11.
Enterprise value
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Enterprise value, total enterprise value, or firm value is an economic measure reflecting the market value of a business. It is a sum of claims by all claimants, creditors and shareholders, enterprise value is one of the fundamental metrics used in business valuation, financial modeling, accounting, portfolio analysis, and risk analysis. Enterprise value is more comprehensive than market capitalization, which only reflects common equity, a simplified way to understand the EV concept is to envision purchasing an entire business. If you settle with all the security holders, you pay EV, counter-intuitively, increases or decreases in enterprise value do not necessarily correspond to value creation or value destruction. Any acquisition of assets will increase EV, whether or not those assets are productive, similarly, reductions in capital intensity will reduce EV. EV can be if the company, for example, holds abnormally high amounts of cash that is not reflected in the market value of the stock. All the components relevant in liquidation analysis, since using absolute priority in a bankruptcy all securities senior to the equity have par claims. Generally, also, debt is less liquid than equity so that the price may be significantly different from the price at which an entire debt issue could be purchased. In valuing equities, this approach is more conservative, cash is subtracted because it reduces the net cost to a potential purchaser. The effect applies whether the cash is used to issue dividends or to pay down debt, value of minority interest is added because it reflects the claim on assets consolidated into the firm in question. Value of associate companies is subtracted because it reflects the claim on assets consolidated into other firms, because EV is a capital structure-neutral metric, it is useful when comparing companies with diverse capital structures. Price/earnings ratios, for example, will be more volatile in companies that are highly leveraged. Stock market investors use EV/EBITDA to compare returns between equivalent companies on a risk-adjusted basis and they can then superimpose their own choice of debt levels. In practice, equity investors may have difficulty accurately assessing EV if they do not have access to the quotations of the company debt. Remember, the point of EV is to neutralize the different risks, buyers of controlling interests in a business use EV to compare returns between businesses, as above. They also use the EV valuation to determine how much to pay for the whole entity and they may want to change the capital structure once in control. Most corporate debt is in the form of financing, finance leases. Associates and minority interests are stated at historical book values in the accounts, Unfunded pension liabilities rely on a variety of actuarial assumptions and represent an estimate of the outstanding liability, not a true “market” value
12.
London Stock Exchange
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The London Stock Exchange is a stock exchange located in the City of London in the United Kingdom. As of December 2014, the Exchange had a capitalisation of US$6.06 trillion. The Exchange was founded in 1801 and its current premises are situated in Paternoster Square close to St Pauls Cathedral in the City of London, the Exchange is part of the London Stock Exchange Group. London Stock Exchange is one of the world’s oldest stock exchanges, London Stock Exchange Group was created in October 2007 when London Stock Exchange merged with Milan Stock Exchange, Borsa Italiana. The Royal Exchange had been founded by English financier Thomas Gresham on the model of the Antwerp Bourse and it was opened by Elizabeth I of England in 1571. During the 17th century, stockbrokers were not allowed in the Royal Exchange due to their rude manners and they had to operate from other establishments in the vicinity, notably Jonathans Coffee-House. At that coffee house, a broker named John Casting started listing the prices of a few commodities, exchange rates and certain key provisions such as salt, coal, originally, this was not a daily list and was only published a few days of the week. This list and activity was moved to Garraway’s coffee house. Public auctions during this period were conducted for the duration that a length of tallow candle could burn, as stocks grew, with new companies joining to raise capital, the royal court also raised some monies. These are the earliest evidence of organised trading in securities in London. After Greshams Royal Exchange building was destroyed in the Great Fire of London, it was rebuilt and this was a move away from coffee houses and a step towards the modern model of stock exchange. The Royal Exchange not only housed brokers but also merchants and merchandise and this was the birth of a regulated stock market, which had teething problems in the shape of unlicensed brokers. In order to regulate these, Parliament brought out an act in 1697 that levied heavy penalties and it also set a fixed number of brokers, which was later increased as the size of the trade grew. The street in which they were now dealing was known as Exchange Alley, Parliament tried to regulate this and ban the unofficial traders from the Change streets. Traders became weary of bubbles when companies rose quickly and fell, after the Seven Years War, trade at Jonathans coffee house boomed again. In 1773, Jonathan, together with 150 other brokers, formed a club and opened a new and this now had a set entrance fee, through which traders could enter the stock room and trade securities. It was, however, not a location for trading. Fraud was also rife during these times and in order to such dealings
13.
Market trend
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A market trend is a perceived tendency of financial markets to move in a particular direction over time. These trends are classified as secular for long time frames, primary for medium time frames, a trend can only be determined in hindsight, since at any time prices in the future are not known. The terms bull market and bear market describe upward and downward market trends, respectively, the names perhaps correspond to the fact that a bull attacks by lifting its horns upward, while a bear strikes with its claws in a downward motion. A secular market trend is a trend that lasts 5 to 25 years. A secular bear market consists of bull markets and larger bear markets. In a secular bull market the prevailing trend is bullish or upward-moving, in a secular bear market, the prevailing trend is bearish or downward-moving. An example of a bear market occurred in gold between January 1980 to June 1999, culminating with the Brown Bottom. During this period the nominal gold price fell from a high of $850/oz to a low of $253/oz, a primary trend has broad support throughout the entire market and lasts for a year or more. A bull market is a period of rising prices. The start of a market is marked by widespread pessimism. This point is when the crowd is the most bearish, the feeling of despondency changes to hope, optimism, and eventually euphoria, as the bull runs its course. This often leads the cycle, for example in a full recession. Indias Bombay Stock Exchange Index, BSE SENSEX, had a bull market trend for about five years from April 2003 to January 2008 as it increased from 2,900 points to 21,000 points. More than 6 fold rise in 5 years, notable bull markets marked the 1925-1929, 1953–1957 and the 1993-1997 periods when the U. S. A bear market is a decline in the stock market over a period of time. It is a transition from high investor optimism to widespread investor fear, according to The Vanguard Group, While there’s no agreed-upon definition of a bear market, one generally accepted measure is a price decline of 20% or more over at least a two-month period. A bear market followed the Wall Street Crash of 1929 and erased 89% of the Dow Jones Industrial Averages market capitalization by July 1932, after regaining nearly 50% of its losses, a longer bear market from 1937 to 1942 occurred in which the market was again cut in half. Another long-term bear market occurred from about 1973 to 1982, encompassing the 1970s energy crisis, yet another bear market occurred between March 2000 and October 2002
14.
NASDAQ
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The Nasdaq Stock Market is an American stock exchange. It is the second-largest exchange in the world by market capitalization, the exchange platform is owned by Nasdaq, Inc. which also owns the Nasdaq Nordic and Nasdaq Baltic stock market network and several other US stock and options exchanges. When it was founded, NASDAQ stood for the acronym of National Association of Securities Dealers Automated Quotations, NASDAQ was founded in 1971 by the National Association of Securities Dealers, which divested itself of NASDAQ in a series of sales in 2000 and 2001. The Nasdaq Stock Market is owned and operated by Nasdaq, Inc. the stocks of which were listed on its own stock exchange marketing July 2,2002, when the Nasdaq Stock Market began trading on February 8,1971, it was the worlds first electronic stock market. At first, it was merely a system and did not provide a way to perform electronic trades. The Nasdaq Stock Market helped lower the spread but was unpopular among brokerages which made much of their money on the spread. As late as 1987, the NASDAQ exchange was still referred to as OTC in media. Over the years, the Nasdaq Stock Market became more of a market by adding trade and volume reporting. The Nasdaq Stock Market attracted new companies such as Microsoft, Apple, Cisco, Oracle and Dell. Its main index is the NASDAQ Composite, which has published since its inception. In 1992, the Nasdaq Stock Market joined with the London Stock Exchange to form the first intercontinental linkage of securities markets, the National Association of Securities Dealers spun off the Nasdaq Stock Market in 2000 to form a publicly traded company. In 2006, the status of the Nasdaq Stock Market was changed from a market to a licensed national securities exchange. In 2007, Nasdaq merged with OMX, an exchange operator in the Nordic countries, expanded its global footprint. NASDAQ OMX could be looking to acquire the American exchanges cash equities business, at the time, NYSE Euronext’s market value was $9.75 billion. Nasdaq was valued at $5.78 billion, while ICE was valued at $9.45 billion. Late in the month, Nasdaq was reported to be considering asking either ICE or the Chicago Mercantile Exchange to join in what would probably have to be, if it proceeded, an $11–12 billion counterbid. The European Association of Securities Dealers Automatic Quotation System was founded as a European equivalent to the Nasdaq Stock Market and it was purchased by NASDAQ in 2001 and became NASDAQ Europe. Operations were shut down, however, as a result of the burst of the dot-com bubble, in 2007, NASDAQ Europe was revived as Equiduct, and is currently operating under Börse Berlin
15.
Treasury stock
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A treasury stock or reacquired stock is stock which is also bought back by the issuing company, reducing the amount of outstanding stock on the open market. Stock repurchases are used as a tax efficient method to put cash into shareholders hands, rather than paying dividends, sometimes, companies do it when they feel that their stock is undervalued on the open market. Other times, companies do it to reduce dilution from incentive compensation plans for employees, another motive for stock repurchase is to protect the company against a takeover threat. The United Kingdom equivalent of treasury stock as used in the United States is treasury share, Treasury stocks in the UK refers to government bonds or gilts. If not canceled, such shares are referred to as treasury shares, technically, a repurchased share is a companys own share that has been bought back after having been issued and fully paid. The possession of treasury shares does not give the company the right to vote, to exercise rights as a shareholder, to receive cash dividends. Treasury shares simply reduce ordinary share capital, in an efficient market, a company buying back its stock should have no effect on its price per share valuation. Additionally, buying back shares will improve price/earnings ratios due to the number of shares. If the market is not efficient, the shares may be underpriced. In that case a company can benefit its other shareholders by buying back shares, if a companys shares are overpriced, then a company is actually hurting its remaining shareholders by buying back stock. One other reason for a company to buy back its own stock is to reward holders of stock options, call option holders are hurt by dividend payments, since, typically, they are not eligible to receive them. A share buyback program may increase the value of remaining shares, if so and this does not apply to unscheduled dividends since the strike prices of options are typically adjusted to reflect the amount of the special dividend. Finally, if the sellers into a corporate buyback are actually the call option holders themselves, the company can either retire the shares or hold the shares for later resale. Buying back stock reduces the number of outstanding shares, accompanying the decrease in the number of shares outstanding is a reduction in company assets, in particular, cash assets, which are used to buy back shares. On the balance sheet, treasury stock is listed under shareholders equity as a negative number, the accounts may be called Treasury stock or equity reduction. One way of accounting for treasury stock is with the cost method, in this method, the paid-in capital account is reduced in the balance sheet when the treasury stock is bought. When the treasury stock is sold back on the open market, another common way for accounting for treasury stock is the par value method. In the par value method, when the stock is purchased back from the market, therefore, common stock is debited and treasury stock is credited
16.
Reuters
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Reuters /ˈrɔɪtərz/ is an international news agency headquartered in London, England. It is a division of Thomson Reuters, until 2008, the Reuters news agency formed part of an independent company, Reuters Group plc, which was also a provider of financial market data. Since the acquisition of Reuters Group by the Thomson Corporation in 2008, Reuters transmits news in English, French, Arabic, Spanish, German, Italian, Portuguese, Russian, Japanese, Korean, Urdu, and Chinese. The Reuter agency was established in 1851 by Paul Julius Reuter in Britain at the London Royal Exchange, Paul Reuter worked at a book-publishing firm in Berlin and was involved in distributing radical pamphlets at the beginning of the Revolutions in 1848. Upon moving to England, he founded Reuters Telegram Company in 1851, headquartered in London, the company initially covered commercial news, serving banks, brokerage houses, and business firms. The first newspaper client to subscribe was the London Morning Advertiser in 1858, Reuters agency built a reputation in Europe and the rest of the world as the first to report news scoops from abroad. Reuters was the first to report Abraham Lincolns assassination in Europe, for instance, in 1872, Reuters expanded into the far east, followed by South America in 1874. Both expansions were made possible by advances in overland telegraphs and undersea cables, in 1883, Reuters began transmitting messages electrically to London newspapers. In 1923, Reuters began using radio to transmit news internationally, in 1925, The Press Association of Great Britain acquired a majority interest in Reuters, and full owners some years later. During the world wars, The Guardian reported that Reuters came under pressure from the British government to national interests. In 1941 Reuters deflected the pressure by restructuring itself as a private company, the new owners formed the Reuters Trust. In 1941, the PA sold half of Reuters to the Newspaper Proprieters Association, the Reuters Trust Principles were put in place to maintain the companys independence. At that point, Reuters had become one of the major news agencies. In 1961, Reuters scooped news of the erection of the Berlin Wall, in 1981, Reuters began making electronic transactions on its computer network, and afterwards developed a number of electronic brokerage and trading services. Reuters was floated as a company in 1984, when Reuters Trust was listed on the stock exchanges such as the London Stock Exchange. Reuters published the first story of the Berlin Wall being breached in 1989, share price grew during the dotcom boom, then fell after the banking troubles in 2001. In 2002, Brittanica wrote that most news throughout the world came from three major agencies, the Associated Press, Reuters, and Agence France-Presse, Reuters merged with Thomson Corporation in Canada in 2008, forming Thomson Reuters. In 2009, Thomson Reuters withdrew from the LSE and the NASDAQ, instead listing its shares on the Toronto Stock Exchange, the last surviving member of the Reuters family founders, Marguerite, Baroness de Reuter, died at age 96 on 25 January 2009
17.
Wayback Machine
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The Internet Archive launched the Wayback Machine in October 2001. It was set up by Brewster Kahle and Bruce Gilliat, and is maintained with content from Alexa Internet, the service enables users to see archived versions of web pages across time, which the archive calls a three dimensional index. Since 1996, the Wayback Machine has been archiving cached pages of websites onto its large cluster of Linux nodes and it revisits sites every few weeks or months and archives a new version. Sites can also be captured on the fly by visitors who enter the sites URL into a search box, the intent is to capture and archive content that otherwise would be lost whenever a site is changed or closed down. The overall vision of the machines creators is to archive the entire Internet, the name Wayback Machine was chosen as a reference to the WABAC machine, a time-traveling device used by the characters Mr. Peabody and Sherman in The Rocky and Bullwinkle Show, an animated cartoon. These crawlers also respect the robots exclusion standard for websites whose owners opt for them not to appear in search results or be cached, to overcome inconsistencies in partially cached websites, Archive-It. Information had been kept on digital tape for five years, with Kahle occasionally allowing researchers, when the archive reached its fifth anniversary, it was unveiled and opened to the public in a ceremony at the University of California, Berkeley. Snapshots usually become more than six months after they are archived or, in some cases, even later. The frequency of snapshots is variable, so not all tracked website updates are recorded, Sometimes there are intervals of several weeks or years between snapshots. After August 2008 sites had to be listed on the Open Directory in order to be included. As of 2009, the Wayback Machine contained approximately three petabytes of data and was growing at a rate of 100 terabytes each month, the growth rate reported in 2003 was 12 terabytes/month, the data is stored on PetaBox rack systems manufactured by Capricorn Technologies. In 2009, the Internet Archive migrated its customized storage architecture to Sun Open Storage, in 2011 a new, improved version of the Wayback Machine, with an updated interface and fresher index of archived content, was made available for public testing. The index driving the classic Wayback Machine only has a bit of material past 2008. In January 2013, the company announced a ground-breaking milestone of 240 billion URLs, in October 2013, the company announced the Save a Page feature which allows any Internet user to archive the contents of a URL. This became a threat of abuse by the service for hosting malicious binaries, as of December 2014, the Wayback Machine contained almost nine petabytes of data and was growing at a rate of about 20 terabytes each week. Between October 2013 and March 2015 the websites global Alexa rank changed from 162 to 208, in a 2009 case, Netbula, LLC v. Chordiant Software Inc. defendant Chordiant filed a motion to compel Netbula to disable the robots. Netbula objected to the motion on the ground that defendants were asking to alter Netbulas website, in an October 2004 case, Telewizja Polska USA, Inc. v. Echostar Satellite, No.02 C3293,65 Fed. 673, a litigant attempted to use the Wayback Machine archives as a source of admissible evidence, Telewizja Polska is the provider of TVP Polonia and EchoStar operates the Dish Network
18.
Financial market
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A financial market is a market in which people trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand. Securities include stocks and bonds, and commodities include precious metals or agricultural products, in economics, typically, the term market means the aggregate of possible buyers and sellers of a certain good or service and the transactions between them. The term market is used for what are more strictly exchanges, organizations that facilitate the trade in financial securities. This may be a location or an electronic system. Another common use of the term is as a catchall for all the markets in the financial sector, capital markets which to consist of, Stock markets, which provide financing through the issuance of shares or common stock, and enable the subsequent trading thereof. Bond markets, which provide financing through the issuance of bonds, commodity markets, which facilitate the trading of commodities. Money markets, which provide short term debt financing and investment, derivatives markets, which provide instruments for the management of financial risk. Futures markets, which provide standardized forward contracts for trading products at some future date, Foreign exchange markets, which facilitate the trading of foreign exchange. Spot market Interbanks market The capital markets may also be divided into primary markets, newly formed securities are bought or sold in primary markets, such as during initial public offerings. Secondary markets allow investors to buy and sell existing securities, the transactions in primary markets exist between issuers and investors, while secondary market transactions exist among investors. Liquidity is an aspect of securities that are traded in secondary markets. Liquidity refers to the ease with which a security can be sold without a loss of value, securities with an active secondary market mean that there are many buyers and sellers at a given point in time. Investors benefit from liquid securities because they can sell their assets whenever they want, Financial markets attract funds from investors and channel them to corporations—they thus allow corporations to finance their operations and achieve growth. Money markets allow firms to borrow funds on a term basis. Without financial markets, borrowers would have difficulty finding lenders themselves, intermediaries such as banks, Investment Banks, and Boutique Investment Banks can help in this process. Banks take deposits from those who have money to save and they can then lend money from this pool of deposited money to those who seek to borrow. Banks popularly lend money in the form of loans and mortgages, a good example of a financial market is a stock exchange. A company can raise money by selling shares to investors and its shares can be bought or sold
19.
Capital market
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A capital market is a financial market in which long-term debt or equity-backed securities are bought and sold. Capital markets are defined as markets in money is provided for periods longer than a year. Capital markets channel the wealth of savers to those who can put it to productive use. There are many thousands of systems, most serving only small parts of the overall capital markets. Entities hosting the systems include stock exchanges, investment banks, physically the systems are hosted all over the world, though they tend to be concentrated in financial centres like London, New York, and Hong Kong. A capital market can be either a primary market or a secondary market, in primary markets, new stock or bond issues are sold to investors, often via a mechanism known as underwriting. The main entities seeking to raise funds on the primary capital markets are governments. Governments issue only bonds, whereas companies often issue either equity or bonds, the main entities purchasing the bonds or stock include pension funds, hedge funds, sovereign wealth funds, and less commonly wealthy individuals and investment banks trading on their own behalf. In the secondary markets, existing securities are sold and bought among investors or traders, usually on an exchange, over-the-counter, or elsewhere. The existence of secondary markets increases the willingness of investors in primary markets, a second important division falls between the stock markets and the bond markets. The money markets are used for the raising of short term finance, whereas the capital markets are used for the raising of long term finance, such as the purchase of shares, or for loans that are not expected to be fully paid back for at least a year. Funds borrowed from the markets are typically used for general operating expenses. For example, a company may have inbound payments from customers that have not yet cleared, when a company borrows from the primary capital markets, often the purpose is to invest in additional physical capital goods, which will be used to help increase its income. It can take months or years before the investment generates sufficient return to pay back its cost. Together, money markets and capital markets form the financial markets as the term is narrowly understood, the capital market is concerned with long term finance. In the widest sense, it consists of a series of channels through which the savings of the community are available for industrial and commercial enterprises. Regular bank lending is not usually classed as a market transaction. A key difference is that with a bank loan, the lending is not securitised
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Secondary market
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The secondary market, also called the aftermarket, is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold. Another frequent usage of secondary market is to refer to loans which are sold by a bank to investors such as Fannie Mae. The term secondary market is used to refer to the market for any used goods or assets. After the initial issuance, investors can purchase from other investors in the secondary market, the secondary market for a variety of assets can vary from loans to stocks, from fragmented to centralized, and from illiquid to very liquid. The major stock exchanges are the most visible example of secondary markets - in this case. Exchanges such as the New York Stock Exchange, London Stock Exchange and Nasdaq provide a centralized, most bonds and structured products trade “over the counter, ” or by phoning the bond desk of one’s broker-dealer. Loans sometimes trade online using a Loan Exchange, in the secondary market, securities are sold by and transferred from one investor or speculator to another. It is therefore important that the market be highly liquid. As a general rule, the greater the number of investors that participate in a marketplace, and the greater the centralization of that marketplace. Fundamentally, secondary markets mesh the investors preference for liquidity with the users preference to be able to use the capital for an extended period of time. The term may refer to markets in things of value other than securities, similarly, secondary markets can be said to exist in some real estate contexts as well. These have very similar functions as secondary stock and bond markets in allowing for speculation, providing liquidity and it facilitates liquidity and marketability of the long term instrument. It also provides instant valuation of securities caused by changes in the environment, Private equity secondary market refers to the buying and selling of pre-existing investor commitments to private equity funds. Sellers of private equity investments sell not only the investments in the fund, due to the increased compliance and reporting obligations enacted in the Sarbanes-Oxley Act of 2002, private secondary markets began to emerge, such as SecondMarket and SecondaryLink. These markets are only available to institutional or accredited investors and allow trading of unregistered. Aftermarket Clean Energy Bank Grey market Primary market Third market Fourth market Original equipment manufacturer Private equity secondary market Reseller
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Stock
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The stock of a corporation is constituted of the equity stock of its owners. A single share of the stock represents fractional ownership of the corporation in proportion to the number of shares. In liquidation, the stock represents the residual assets of the company that would be due to stockholders after discharge of all senior claims such as secured and unsecured debt. Stockholders equity cannot be withdrawn from the company in a way that is intended to be detrimental to the companys creditors, the stock of a corporation is partitioned into shares, the total of which are stated at the time of business formation. Additional shares may subsequently be authorized by the shareholders and issued by the company. In some jurisdictions, each share of stock has a certain declared par value, in other jurisdictions, however, shares of stock may be issued without associated par value. Shares represent a fraction of ownership in a business, a business may declare different types of shares, each having distinctive ownership rules, privileges, or share values. Ownership of shares may be documented by issuance of a stock certificate. A stock certificate is a document that specifies the amount of shares owned by the shareholder. Stock typically takes the form of shares of common stock or preferred stock. As a unit of ownership, common stock typically carries voting rights that can be exercised in corporate decisions, shares of such stock are called convertible preferred shares. New equity issue may have specific legal clauses attached that differentiate them from previous issues of the issuer. Some shares of stock may be issued without the typical voting rights, for instance, or some shares may have special rights unique to them. Often, new issues that have not been registered with a governing body may be restricted from resale for certain periods of time. Preferred stock may be hybrid by having the qualities of bonds of fixed returns and they also have preference in the payment of dividends over common stock and also have been given preference at the time of liquidation over common stock. They have other features of accumulation in dividend, Rule 144 Stock is an American term given to shares of stock subject to SEC Rule 144, Selling Restricted and Control Securities. Under Rule 144, restricted and controlled securities are acquired in unregistered form, investors either purchase or take ownership of these securities through private sales from the issuing company or from an affiliate of the issuer. Investors wishing to sell these securities are subject to different rules than those selling traditional common or preferred stock and these individuals will only be allowed to liquidate their securities after meeting the specific conditions set forth by SEC Rule 144
22.
Common stock
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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 Stock
23.
Golden share
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This share gives the government organization, or other shareholder, the right of decisive vote, thus to vote all other shares, in a shareholders-meeting. NATS Holdings, the UKs main air service provider, is an example of a company with a golden share. It was introduced in Russia by law on November 16,1992, other golden shares ruled illegal include the Spanish governments golden shares in Telefonica, Repsol YPF, Endesa, Argentaria and Tabacalera. The golden share structure of Volkswagen AG and the travails of the German Land of Niedersachsen are discussed by Johannes Adolff, Turn of the Tide. com
24.
Investor
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An investor allocates capital with the expectation of a future financial return. Types of investments include, equity, debt securities, real estate, currency, commodity, token, derivatives such as put and call options, futures, forwards and this definition makes no distinction between those in the primary and secondary markets. That is, someone who provides a business with capital and someone who buys a stock are both investors, an investor who owns a stock is a shareholder. The assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss, the term speculation implies that a business or investment risk can be analyzed and measured, and its distinction from the term investment is one of degree of risk. It differs from gambling, which is based on random outcomes, investors can include stock traders but with this distinguishing characteristic, investors are owners of a company which entails responsibilities. There are two types of investors, retail investors and institutional investors, Individuals gambling in games of chance, in this respect, an important distinctive investor psychology trait is risk attitude. The term investor protection defines the entity of efforts and activities to observe, safeguard and enforce the rights and this includes advice and legal action. Countries with stronger investor protections tend to grow faster than those with poor investor protections, investor protection includes accurate financial reporting by public companies so the investors can make an informed decision. Investor protection also includes fairness of the market which means all participants in the market have access to the same information, investor protection through government is regulations and enforcements by government agencies to ensure that market is fair and fraudulent activities are eliminated. An example of a government agency provides protection to investors is the U. S. Securities and Exchange Commission. Investor protection through individual is the strategy that one utilizes to minimize loss, individual investors can protect themselves by purchasing only shares of businesses that they understand, or only those that remain calm through market volatility. An individual investor may be protected by the strategy he uses in investment, the strategy includes an appropriate price of the stocks or assets in the right time he enters. Its hard to fix what an appropriate price is, and when it is appropriate because no one makes a purchase or a sale absolutely in his most favorable situation, however, determination may be made when the price of such share or assets are undervalued comparing to its potentiality. This is called the margin of safety where an investor can feel at ease when the price of the stocks is alarmingly down, in various instances, the term investor is associated with a means of getting rich quickly. Historically, the road to successful investment is founded on preparation, with various goals that help smooth the journey to the ultimate. To be successful, authorities such as Investopedia advise that an investment plan must include an objective, a determined period of time for completion. A planned investment structure would be dependent on the desired investment target, for an investor, understanding the influencing factors related to finance is a valuable asset which can be gained from various sources. A financial awareness will help any investor learn and understand the mechanism of the investment marketplace, warren Buffett, an established and recognized expert on the subject of successful investing, has a simple philosophy, If I cannot understand it, I will not invest in it
