Stock Market Research Papers Samples For Students

1. Reason for the Agency Securities and Exchange Commission Agency plays an important role in providing regulations which govern securities market functioning as well as protecting investors’ welfare in these markets. Nevertheless, this agency monitors the corporate takeovers in the United States. In general, Securities and Exchange Commission is the U.S overall agency whose main agenda is to enforce laws and regulations related to federal securities, stock and options exchanges. This agency was established by the congress in 1934 following the crash of the stock market crash which saw the American economy decline in 1929 (Graham, 1993). Following its ...

1. Reason for the Agency Securities and Exchange Commission Agency plays an important role in providing regulations which govern securities market functioning as well as protecting investors’ welfare in these markets. Nevertheless, this agency monitors the corporate takeovers in the United States. In general, Securities and Exchange Commission is the U.S overall agency whose main agenda is to enforce laws and regulations related to federal securities, stock and options exchanges. This agency was established by the congress in 1934 following the crash of the stock market crash which saw the American economy decline in 1929 (Graham, 1993). Following its ...

Annuities and perpetuities are types of financial instrument, which make payments at regular intervals (parrino & kidwell, 2009). Although both perpetuities and annuities make regular payments, there is a difference in the life span of the financial instruments. Annuities have a finite lifespan while perpetuities have an infinite life span (Grinblatt & Titman, 2002). Examples of annuities are; loan repayment and lottery winning. For loan repayment, the principal and interest are repaid in regular intervals while in lottery winning the winner receives a fixed amount of the winning for fixed period. Example of perpetuity is a charity donation and a pension fund is a pension fund ...

Stock Analysis of Amazon and J.C. Penney
- The two stocks selected are Amazon (AMZN) and J.C. Penney (JCP). Amazon is an American e-commerce company (online retailer) with a market capitalization of $171B, and J.C.Penney is an American clothes retailer with a market capitalization of $2.64B. These two stocks are of particular interest for our study period. Amazon is interesting because it is a strong growth internet company who is trying to innovate and convince its investors of its ability to sustain high growth rates. J.C. Penney is interesting because it is considered as a “fallen angel”, a previously highly profitable company which encountered ...

Definition

Finance is science, which explains about the management, creation, money, banking, credit, investment, assets and liabilities. The finance has financial systems. It has public, private, and government phases. There are three types of finance public, corporate, and private finance.

Efficient Market

An investment that states impossible to beat the market because the stock market efficiency causes the existing price to the corporate, EMH says, the stock always fall value on stock exchanges. It is impossible to outperform in the overall market based on the expert stock selection. The efficient market deals with the market research and efficiency.

Primary Market

A market issues new ...

This is an INDIVIDUAL assignment. Submit your answers in hardcopy at the beginning of class. Check the syllabus for the due date. Handwritten answers are NOT acceptable. Use Word to write your answers.

Chapter 4: Investing

Please choose a publicly traded company that you find interesting or would like to invest in, and find their ticker symbol on www.money.msn.com or www.finance.yahoo.com.

Two factors have been shown significant in determining the long-run performance of stocks:

- The size of the company, known as “market capitalization” (often shortened to “market cap”)
- The price of the stock, relative to its book value (price to book)
- Go to http://www.morningstar.com/ and enter the ticker for your chosen ...

The recent debate about whether eBay should spin PayPal off is fanned by conflicting approaches to increasing company profitability, value to shareholders, and customers. On one side, the activist investor is claiming that PayPal will be more profitable if it is spun off, while on the other side, eBay board members claim that both eBay and PayPal are profitable together than they would be independently. According to the activist, PayPal, which accounts for a big portion of eBay revenue, would be more innovative and be more competitive in the online payment sector if it branched off. In his argument this ...

Investing in the Future

Investing in the Future

One of the most important aspects of modern life is planning the financial future. It’s not a secret that every successful task in our life needs planning, whether it is planning a holiday or planning some long-term event. However, the most significant of all things is personal financial planning as it secures good future life for people involved in this process. Planning the financial life a person should be serious and responsible and should examine many aspects which influence the process of financial planning at all. The finances should be balanced taking into consideration both short- and ...

Business

One of the most interesting and attractive aspect for the investors is the growth signals of any business. In the business of retail marketing or a distribution business like a Walmart, the factor which must attract the current and new investors is the future plans of Walmart. On the basis of their financial performance, in the future, Walmart will be in a strong position to reinvest their earnings to capture new markets. Walmart can easily deploy their display centers or stores at any favorable place. This capacity of Walmart ensures that Walmart can sustain and progress in the future. When the management of ...

Introduction: The Theory

Gamblers fallacy is an argument that bases its argument on the occurrence of random events, in that if the occurrence of a certain event is frequent currently the there will be an infrequent occurrence in the future. The fallacy depicts that if something happens more often or if there is a positive performance, there will be a rare occurrence in the future, or the performance will be negative. The fallacy is based on independent events where the outcome of one event does not influence the other also called random events. The fallacy argues that if a certain outcome is favored then as you ...

Introduction

The initial step in constructing Mr. Donothing portfolio is to determine the appropriate asset allocation. To begin with is by ascertaining Mr. Donothing financial position and investment goals. The most important factor to start with is Mr. Donothing age, available opportunity of growing his investments as well as the amount of capital that may be required for future capital needs. At the age of 55 Mr. Donothing will be planning of paying his child’s education. Another factor to consider is his risk tolerance. Would he be willing to risk some money for a possibility of greater returns? Mr. Donothing ...

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Introduction

The Internet Bubble, also called the “dot-com boom” was created by Tim Berners-Lee in 1993. Historically, it was a speculative bubble, which means that people reached conclusions about its continued profitability that were not based on facts. The bubble covered a period from 1997-2000 and reached its ultimate climax on March 10, 2000 with NASDAQ stock trading reaching an unprecedented high of 5,408.60 in one day before the close of trading. That day stock markets in the industrialized countries saw the prices of their stocks rise briskly both in the Internet Segment and interrelated areas ...

Today there are many stock-picking strategies that will help the investors to choose the best stocks to invest in. As new investors face the high risk of losing their money by investing in bad stocks, it is highly recommended using the available on the Internet websites to find what stocks are the best to invest in. Due to the stock screeners, new investors can select stocks considering a large set of criteria.
Yahoo! Finance provides financial information and financial news about the companies, which the investors can use while selecting the investment portfolio. Yahoo! Finance offers 19 preset screens ...

Executive Summary

This paper will evaluate the value of a probable takeover company by Yoogiboost as a plan of expansion of the company. Later the various options of finance are discussed selecting the most suitable one.

Introduction

Yoogiboost is a healthy frozen yogurt food chain. It provides people with the option of eating healthy frozen yogurt with some wide variety of delicious toppings. This company was established 12 years ago and has expanded immensely during that time span. It is running in the competitive business of fast food chains, however it falls in the healthy side of the foo business. Hence one of its biggest ...

Business

Introduction
Smitheford pharmaceutical is a pharmaceutical company that was founded in 1878 by Robert Smitheford, who was a general during the civil war. The company expanded to become a large firm and even opened branches in cities such as Colorado, Durango among others. However, as time went by, the technological dynamics and change in pharmaceuticals industry rules have impacted the company negatively and, therefore, needs to review how it conducts its business.
In addition, though, the company utilizes employee incentives to ensure and enhance employee satisfaction, the lack of proper implementation of the quality management philosophies have not helped the ...

About the company

Apple Inc. is an American multinational enterprise that design and develop consumer electronics, provides paid multimedia services and sells software. Headquartered in California, the company was founded in 1976. The consumer electronics of the company includes, IPhone. I pad, IPod and MacBook, while the paid multimedia service is known as ITunes. The company trades on NASDAQ under the ticker sign of ‘AAPL’.

Rational for selection

The core objective of this paper is to analyze the financial performance of Apple Inc. which has always been in good news for introducing innovative products into the market. Although the company had ruled the multimedia and ...

- In Sec 1031 of Internal Revenue Code, what type of stocks are not included as stock for purposes of Sec 1031 like kind exchanges?
The Internal Revenue Code subsection 1031 stipulates that you have to pay tax whenever you sell an investment property or business and gain from it. Tax is paid on the gain made at the time of sale. Under this section, a real property owner can decide to reinvest the proceeds from the sell in ownership of a like-kind property and defer the capital gain taxes. However, certain types of stocks are specifically excluded from Sec. ...

Judging by the financial results obtained in 2013, Amazon.com Inc. implemented successful financial management. The revenues grew by 13.4 billion USD in 2013 if compared to previous year. The company moved from a loss of $39 million in 2012 to a gain of $274 million in 2013. The revenues of the company more than doubled showing stable uptrend (Figure 1). As it can be seen from Figure 1, the financial management was not very successful in 2014 because one-year movement of stock is currently in the downtrend. However, one-month movement of stock shows uptrend raining hope for growth in the near ...

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Introduction

Allen Stanford, James Davis and Laura Pendergest-Holt were the Chief Executive Officer (CEO), Chief Financial Officer (CFO) and Chief Investment Officer (CIO) respectively of the Stanford Financial Group, which was under investigation by the Securities Exchange Commission (SEC) for undertaking to cheat investors of $7 billion through a massive Ponzi scheme in overseas Certificate of Deposits (CDs) which were offering returns that were consistently higher than the market. Each of the three is presently serving prison sentences for their respective roles in the crime and related investigation.

History of Key Members of Stanford Financial Systems

Allen Stanford: Born in 1950 in Mexia, Texas, ...

In the years 2006 to 2009, the U.S economy faced a housing crisis that caused financial turmoil and panic around the world. The crisis arose because of flawed financial modeling and excess borrowing, based on the assumption that the house prices could only rise. Fraud and greed also play some part. The paper analyzes how the events unfolded based its impacts and the role of the government in the matter.

Major Problems

Many economic problems coincided with the mortgage crisis. The housing crisis resulted to the mortgage delinquencies and subsequent closure. Most of the housing related securities decreased in value substantially. There ...

CDS (Credit Default Swaps) are binding contracts that provide a guarantee against any form of default against corporate debt, mortgage-backed securities and municipal bonds. CDS is a financial swap agreement that the buyer of the swap will be compensated by the seller in case the debtor defaults the loan or any other credit event occurs. The seller receives payments (CDS fee) from the buyer. In case the loan defaults, the buyer of the credit default swap receives a payoff. The compensation received by the buyer is usually equal to the value of the loan. Possession of the loan is then taken by ...

Introduction

Investment and return are the two flip sides of the same coin. There are certain pre-requisites that are essential for the investment purpose, and it would be used on the basis of analysis. There is tradeoff finds among the risk and return approach of an investment, and the most effective investor is the one who has the ability to manage the investment in a well organized and perfect manner (Davies and Servigny, p.34). Making of portfolio and diversification is one of the most important aspects from the viewpoint of investment purpose, and investors are delivering their best to maintain their ...

Analysis the Roots and future of Financial Problems in Wall Street

Introduction
Since the recent collapse on Wall Street about five year ago, the nation is still yet to recover from most of the negative effects that came with such a catastrophic event. Millions of American lost their job without prior warning (Barley,2). Most of the men who were adversely affected included those that held positions in the middle and lower income earning categories.
In the light of job loss and chaos in the nation, it was clear that some of the top managers had already acquired their golden parachutes. Investigations show that billions of dollars vanished from ...

Introduction: Need for regulatory environment

It was the time of early 2000’s when the headlines of major newspaper were full of corporate fraud and the companies filing for the bankruptcies. Most of the companies were involved in the accounting restatements, i.e. major corrections of their financial statements and the count of such companies were growing everyday and were also posing a major impact over the stock market performance. Although the list was exhaustive, but the major corporations, that were found to be involved in the financial scandals were:
- Enron
- Worldcom
- Xerox
- Sunbeam
- Adelphia
...

Jazz music was the major music trending in 1920s with recognition throughout the world. Perhaps, this was possible through the efforts made by the vocalists who seemed to gain dominance in the spotlight. Since this type of music seemed to be fashionable in the music industry, several improvements were to be improved in its vocals through the use of saxophones. Jazz age was described as the time when the world war ended to when the depression begun in the year 1929 (Vladimir, 54). Jazz music gained popularity in America, alththough the past generations viewed it as evil and threatening ...

Answer 1)

Every entity has its hunger for the capital, however, the decision to raise through the appropriate source and in which proportion is not a one day job. Thus, the borrowing company should consider the advantages and disadvantages of each source of finance, i.e. Debt and Equity. Below provided is a brief summary of both the sources of finance:

Advantages of Equity Financing:

A) Expanded Capital Base:
Equity Financing offers the advantage of raising large amount of capital. The amount so raised can be used for Research and Development projects, capital budgeting expansions, working capital requirements. All these advantages are quintessential to Fuel Company’s ...

Post the Globalization era, the financial scandal of Enron and then the global economic and financial meltdown has raised the issue of convergence of the accounting standards. This is because both of the prevailing accounting standard, IFRS and GAAP, have different rules in their accounting standards, it has caused quite a complexity in the accounting world which is disclosed below:
- It causes difficulty and complexity in comparison on financial statements. For instance, if an investor is analyzing an Australian Company and an American company in the same industry, where the Australian company is using IFRS Standards while US ...

Abstract:

The research paper deals with the Efficient Market Hypothesis(EMH) and the related market anomalies and to find that despite there has been extensive research conducted in support of EMH, why is it possible that investors like Warren Buffet and many others have consistently beaten the market year after year and have made billions in profit and if markets are efficient why does the stock prices deviate from their value. For the purpose of this research, we will include a brief introduction of EMH, existing literature review in support of EMH and will then finally proceed to conduct our analysis ...

The beginning of Stock market in America.

Trading in the stock exchange markets has a definite origin. Ideally, the American Stock Exchange represented by the acronym (AMEX). Historically, the trading in the stock market commenced in the 1800s periods. This transition was referred to as the curb exchange. Historically, the origin shows that the stock exchange in the United States was established with the intention to develop a stable economic power. This was the primary disquiet of the United States economic stimulus policy. According to the historical records, this occurred during the times of Alexander Hamilton, the first secretary of the treasury at that time. This executive secretary ...

3M Company is a manufacturing company. Its headquarters is situated in St Paul, Minnesota. It was previously referred to as the Minnesota Mining and Manufacturing Company. 3M Company invests in stocks and bonds. 3M shares are traded in the New York Securities Exchange market. A bond is defined as an investment, in the form of debt that an entity, a corporation or government, receives from the investor for a definite period to be repaid at a fixed rate of interest. Bonds are exploited by companies and governments to fund different activities and carry out certain projects.
3M Company has experienced tremendous growth ...

High speed trading is the style of algorithmic trading. This trading uses complicated technological tools, mostly computers that are extremely powerful. These computers are programmed to perform commands at very high speeds and carry out numerous orders all at once (Seven Pillars Institute, 2014). This trading employs complex algorithms to analyze a number of markets carefully a number of markets. It then implements commands in relation to the prevailing market conditions. Those traders who are fastest in their speeds of execution earn more profits than the traders with low execution speeds.
High speed or frequency trading accounts for almost above ...

Part 1

Yes, the company was anticipating for a profitable year. The company had budgeted that the total expenses for the year would be 276,881,596 this was far way below its total revenues which it anticipated would be 542,686,558. This means that the company was planning to get a profit of 265,804,961 before tax and after payment of taxes that were to amount to 46,067,953 it was expecting that there would be a total profit of 219,737,008.
The company is still anticipating for a profitable year ahead this even comes after there was a drop ...

Business Ethics

Business
Business Ethics
Issuance of equity is the sale of new shares or equity of a company to its investors. Issuance of equity can be privately between investors and the firm or it may be publicly where firm register their securities and sale & purchase takes place in share market. Issuance of equity is a costly way of raising capital. There are a number of factors that can increase the cost of issuing equity for Apex e.g. charges paid to underwriters, an increase in the supply of shares may decrease the price pressure, there may be a time delay in registering equity ...

Security and exchange commission refer to a government commission that was created by the congress, in order to protect investors, and regulate the markets securities. Additionally, the security and exchange commission has a duty to monitor the corporate takeovers in the United States. The commission is made up of five commissioners that are appointed by the president of the United States. The senate of the United States approves the five commissioners. The positions of the commissioners expire each year. Among the commissioners, three should be from different political parties. The agency has six districts, and five regional offices in the United ...

Black Wall Street refers to Tulsa, Oklahoma – a place north east of the state of Oklahoma. In the late 2oth century, the Tulsa area, informally referred to as the Negro Wall Street back then, was home to the wealthiest African American businessmen. The community was vibrant and thriving, especially considering that infrastructure was exceptionally laid down, and that the African Americans of Tulsa had already established the social amenities that are associated with convenience. Perhaps it is difficult to believe, but a dollar could circulate between 36 and 100 times before leaving the Black Wall Street (Johnson, 2007). Today, a dollar circulates ...

Impact of Future Derivatives on Stock Market Volatility

Derivatives has been the talk of the financial world after it was accused as the primary reason for such a deep financial crisis that affected the global economy in 2007. Thus, the modelling of asset returns and judging the volatility of stock market and whether the derivatives have a substantial effect on stock market volatility, is still the key task for every finance professional as it provides much needed on risk patterns involved in investment process. The Finance Gurus propose that stock market normally exhibit high levels of price volatility and cause concerns to the investor regarding unpredictable outcomes, however with ...

Shown below is an interesting list of companies with equally interesting issues they have faced in the last 10 years from Forbes Magazine ( 2008). What is interesting to find here is the depth of corporate and personal unethical cases involving people of relatively high educational standings and social standing. The alarming frequency and magnitude of these unethical practices are staggering to say the very least, and yet there seems to be a large scandal waiting to be uncovered every day. This century marks the recognition of dealing with complex business and ethical issues as a priority of corporations around the world.
...

Doing business in an international market presents many challenges. One has to learn about the economic and political climate in the country, as well as the culture of the people. In setting up a WiFi service in Australia, one has to have a knowledge of the current laws and regulations which govern the information and communication technology industry. Australia is generally considered by most multinational companies as the best location for regional headquarters in the Asia Pacific region. In the field of information and communication technology, Australia has several strategic investment opportunities which mean that the WiFi service business is very ...

Over the last couple of years, Texas has hit the national and international headlines for all the wrong reasons. The state that has always been famed as the home of cowboys and the most expansive ranches that attracted so much international admiration has lost all its glory and in its place poverty is quickly becoming the story. Poverty has hit Texas with such a blow that it now lists among the poorest of states in the U.S and its counties and metropolitans tell a different tale from that of a few years ago. Several factors have contributed to this situation and as ...

Introduction

Travis Hirschi’s social control theory as postulated in his publication; Causes of Delinquency has remained a forceful paradigm in criminology from its introduction to date. As a matter of fact, only a few theories have been able to sustain as much debate and empirical attention. Scholarly interest on this theory has been ongoing for a while, generating heated arguments while being tested for its veracity. Hirschi has also remained relevant in the field of theoretical criminology for decades ranking high among the most cited criminologists. But what would have been the reason for this? Before his time, there had been a few scholars ...

Stock market also known as the equity market is where buyer and sellers meet to buy and sell stocks of different companies listed on the stock exchange market at the given time (Hafer & Hein, 2007). This includes both private and public companies. The stock market is increasingly become a source of income for many investors be they large or small. Trades of stock are increasing as the sums traded per day increase. The stock market at the beginning of October 2008 was estimated to be about $36.6 trillion. This shows the large amounts of transactions and businesses carried out in ...

Financial Statements are documents of a company formulated most likely at year-end for a business or an individual and are to state the financial position of a firm as precise as possible for both the user and the owner (CIMA, 2012). The financial statements include balance sheet, income statements, cash flows, statement of retained earnings and other statements.
Financial statements help one to know whether a company is making or losing money. Whether a company is profitable or not. Management and stockholders would want to see the company’s profits to be certain of continuity of the business while customer would want to ...

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Introduction
Investment activity is risky, as a rule, long-term investment of resources in certain assets with a view to profit. Investments can be divided into real and financial.
Real investments are investments in physical capital (current assets, fixed assets, construction, etc.) and intangible (education, advertising, etc.) assets. Financial investments represent investments in the acquisition of financial assets (securities).
For many investors, the priority investment is just the financial investment, since it provides them with endless possibilities. Of course, what would be the most efficient disposition of capital, you need ...

Introduction

Stock market refers to a market for buying and selling stocks. People show interest in stocks mainly due to three reasons - long term growth opportunity for capital, dividends and an ensured hedge against the reduction of purchasing power owing to inflation. Another feature making the stock market a lucrative investment option for many is its liquidity. Majority of the people invest in stocks with the desire to accrue benefit upon the payment of dividends and increase of stock price. There are many people buying stocks because of winning control over the companies. Shareholders of many companies are required to buy ...

- Company Background
Morgan Stanley is a band holding company founded in 1935 that provides financial services worldwide. The Company serves both individual and institutional investors offering securities globally. Morgan Stanley also operates an asset management business and serves investment banking clients. There are three segments Morgan Stanley is currently operating: institutional securities, asset management, and global wealth management (Reuters, 2013).
Morgan Stanley was a pioneer in global expansion to capital markets broadening horizons of strategic transactions. It serves individual, corporate, government, and institutional clients in 40 countries. Morgan Stanley has a number of affiliates and subsidiaries. The Company issues ...

Introduction

Investing can be easier said than done. It is a process that not only involves money, contrary to what most people believe, but also time, effort, energy, skill, knowledge, and usually the most important of all, experience. It is a very tedious task. It has to be made clear that there is a big difference between making investment decisions and making gambling or shotgun decisions. While investment decisions do get affected by luck and other unexpected things such as the collapse of a company or a shifting market trend, it still is unique from gambling decisions. Gambling decisions are usually based on luck, nothing ...

Question 1

The first step is projecting the financial statements which include income statement and balance sheet. They are used to estimate the funds needed for investment. The second step is determining the funds needed. After projections on product sales, productions costs, marketing costs and administrative costs have been made, the finance manager draws a plan for the fund requirement with the timing. The third step is forecasting fund availability. A company generates funds from its activities. The finance manager should be able to forecast funds that can be generated internally to finance the investment. The last step is determining the deficit. ...

Describe how the US financial markets impact the economy, businesses, and individuals.

In the United States, the financial markets play a significant role in promoting economic development. For example, the financial market has a significant impact on pension funds. Large percentages of pension funds are invested in stock market. In the event whereby the share prices record a drastic fall, the effect is reduction in pension payouts in the future.
Another effect of share price is investor confidence. The share price is an indicator of a company’s performance. A reduction in share price reduces the investor confidence. This was the case in Lehman Brothers. When the share prices began reducing, the demand reduced ...

The Occupy Wall Street (OWS) Movement is a movement that started at New York City’s financial district which is more popularly known as “Wall Street” sometime September 2011. The protest movement was backed up by known public relations firm “Workhouse” and the Canadian anti-consumerist and pro-environment group “Adbusters”, which resulted in the protest being a spectacular display of people-power in Manhattan. The protesters centered around discussions regarding social and economic inequality, perceived corruption and greed, and the influence of the financial sector on public policy and governance. According to their website, the Occupy Wall Street is a “leaderless resistance movement with ...

Introduction

Governments not only regulate the financial markets and their intermediaries, but they are also major financial intermediaries themselves. Different types of governments including federal, state and local have continue to play a very huge role within the financial markets through the issuance of securities.
The securities issued by the state and federal governments are used to finance public debt and also fund the ongoing activities of that particular government. Because these securities are often backed by the full credit and faith of the government, they often offer lower interest rates than bonds and securities offered by the corporate sector ( ...

Occupy Wall Street Movement

The upset Americans led the Occupy Wall Street movement, which set off in mid September 2011. The main objective of the movement was to fight against greed and corruption that had taken roots in America. Occupy Wall Street protestors claimed that the government had failed to support the 99% of the Americans who were not satisfied with the policies used to govern the country. These protestors accused the government of failing to address the problem of inequalities in income distribution, unemployment issues, excessive compensations for the employees of financial institutions and influence of public corporations on politics. Several parties ...

Introduction

Boeing Company is renown as an American defense corporation, as well as, a multinational aerospace. The company was founded in the year 1916 by William E Boeing. Over the years, the company has expanded through mergers and acquisition. It is renowned as the best aerospace company in the world, based on its financial performance both financially and in the stock market. The company is made up of several subunits ranging from commercial service units for defense, technology among others. The company publishes its audited financial statements by the end of every accounting period. Similarly, the company issues various types of ...

Introduction

This research paper seeks to explore the Occupy Wall Street Movement in a bid to examine the moral and economic implications of its agenda as well as analyze them against the various business ethics theories with a view to finding which of the theories suit it best. Further, the paper shall grapple with the question as to who is responsible for the economic inequality that has necessitated the protest by the Movement and whether such inequities developed instantaneously or in a piece-meal fashion. This paper shall put forward an equitable outcome that bodes well for the capitalistic society that is the United ...

Ethical standards are paramount to good business practices. A sound ethical framework helps establish a sense of community, pride, and accountability within a business or organization. By using ethical problem solving techniques, such as those proposed by Lonergan or Ruggerio, one can better train themselves to understand what ethical responsibility means and address possible circumstances as they arise. When a business fails to keep to good ethical standards a mirade of problems can arise, this was evident in the Adelphia scandal.
When it was reported that the Adelphia Corporation was facing imminent collapse, shock waves ran through the business world. The reveal ...

The initials IPOs stand for – Initial Public Offer. This is the sale of the stock that is done for the first time by private companies to the members of the public. It is feature usually associated with smaller companies when they are seeking expansion capital. However, it can also take place in private large companies for the purpose of a public trade. IPOs can turn out being risky investments. As for individual investors, it is always hard to forecast the performance of the stock on the first day it is traded and also in the near future due to the ...

Lehman Brothers Bankruptcy

One of the most talked about signs, and for some experts the root cause, of the global recession that plagued in 2008 is the September 2008 bankruptcy petition of known financial giant Lehman Brothers. The known global firm had ended up succumbing to tantamount debt due to the ongoing subprime mortgage transpiring in the period which resulted to severe mortgage complications and foreclosures, especially in the real estate sector The bankruptcy petition was considered a crucial blow to the financial industry given the Dow Jones drop to the all time low and subsequent depreciation prevailed throughout the globe. Many experts ...

Abstract

The modern mantra of corporate risk management is fast becoming “A risk is risk is a risk.” Large, multinational companies are no longer prepared to approach risk management on a single risk-by-risk basis. It makes no sense for a manager to accept a potential $30m loss in the organization’s currency-trading activities and simultaneously hedge against a $10m loss on a suburban office property. Risk managers now realize that any particular risk can have consequences for many seemingly unconnected parts of the business-losses in one part of the business might be offset by gains else where in the organization that result from that loss event. ...

Introduction

International accounting is referred to as the accounting records reporting and principles practiced by difference countries around the globe. This include the international and regional harmonization, the risks involved in foreign exchange, the patterns and classifications of accounting in all the developing and communist countries, foreign currency translation and e.t.c. it encompasses a variety of functional areas, namely the managerial, financial, taxation, the information system of accounting and auditing (Choi & Mueller p.12).
International accounting is a key element in making investment decision since companies are able to translate all their annual financial report into different foreign languages thus facilitating their ...

Introduction

Investment is a tricky aspect of business operations especially for investors. In most cases, investors are forced to invest in a variety of stocks and bonds for the purposes of diversifying their risks. However, investing in different or a wide range of portfolio requires adequate knowledge regarding the financial markets. In addition, investors need to have an adequate and efficient development of a portfolio that would include stocks and bonds from different corporations with the aim of diversifying risks. Based on such convictions, the following is a development of a portfolio that contains investment securities from 3 Fortune 500 stocks and 3 AAA corporate bonds.

Criteria for Portfolio Development

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Question 1

The risk free rate from Bloomberg.com is 2.625%

Question 2

Beta = 1.64
Current annual dividend = $0.8
3-year dividend growth rate = 8.2%
Industry P/E = 15.65
Earnings per share = $4.87

Question 3

Ks = KRF + (Risk Premium) Bs

Where KRF is the risk free rate as determined by the central bank,

Risk premium is the difference between market risk and the risk free rate.
Bs is the security beta and is a volatility measure of the degree to which the securities returns moves in the same direction as market risk.

The required rate of return is then calculated as;

Ks =2.625 + (9) 1.64= 17.39%

Question 4

Current stock price using Constant Growth Model
(D0) = $0.8,
G=8.2%,
(D1) = $0.8*1.082 = $0.8656
Po= D1/ ( ...