Hey Readers,
Of the myriad of arguments presented for and against the new proposed bailout plan, the criticism that the large amount of money issued into the system could trigger much higher inflation is an interesting one. Of course, it is well known that if the Fed actually monetized the new amount and created more money [...]
Understanding the current financial crisis necessitates picking up many new financial terms. “Short selling” has been one of the frequently used terminologies you may have heard as the news struggles to keep up with all of the opinions for explaining what is happening in the market. I thus found it appropriate to write today’s [...]
Have you ever heard of the Glass-Steagall Act? Well, we are all more likely to hear about it in the coming months as acts of regulation are surely on the horizon. The Glass-Steagall Act was set up originally in 1933 and created the Federal Deposit Insurance Corporation (FDIC) and more importantly, in respect [...]
I have been recently roaming cyberspace in search of interesting finance blogs and forums to get new ideas for posting topics and have stumbled upon a very cool site. The site is called Wilmott and it is a website completely devoted to discussing and sharing ideas related to quantitative finance, a field of finance [...]
Hello readers,
It is hard to ignore the latest financial news that has dominated the media. Lehman Brothers going bankrupt, Bank of America agreeing to buy-out Merrill Lynch, and yesterday’s DOW falling the most it has since 9/11. Now AIG is the next large company facing financial difficulty. With all of these massive companies facing [...]
Today’s post is a little more advanced of a topic but a very interesting one. It is based on a academic paper I had to write a while back that dealt with explaining a theory for why companies decide to split their shares of stock. The theory, called the signaling hypothesis, is one of [...]
Hey everyone!
The P/E ratio is one of the most commonly looked at ratios when you want to approximate the price of a stock. It is a simple ratio that takes the current price of a security and divides it by it’s respective earnings per share. This is a much more accurate way at [...]
Welcome Readers!
I am very excited to be writing my first post! Blogging is completely new for me and I contemplated for some time if I wanted to take the leap and begin my “career” writing on such a demanding subject. Taking a couple deep breaths and revving up my entrepreneurial spirit, [...]