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Investment discussions - Free Essay Example

GENERAL INVESTMENTS DISCUSSIONS 1 All investors must make a decision whether to use hybrid, active or passive portfolio management system while investing in stocks and securities. The type of management system that an individual chooses can determine the success or failure of the person making the investments. Active and passive strategies have their own advantages and disadvantages. One main advantage of passive strategy is that little work is required, and the fees charged are low. This is because an investor does not have the need to pay portfolio managers and security analysts to carry out a research on the stocks, and make decisions for the investor (Barnes, 2009). Wieland (2010) denotes that a passive investment strategy has a rate of return of 7% per annum. This, Wieland (2010) denotes that is the main disadvantage of a passive investment strategy. That is, an investor will not get a high return for his or her investments. Barnes (2009) denotes that an active strategy will incorporate a method in which an investor seeks to buy bonds or stocks expecting a high return. On this basis, its main advantage over passive strategy is that an investor can acquire unlimited return. However, this method is very expensive, and there is no guarantee of success. It is important to denote that approximately 80% of actively managed stocks usually underperform (Barnes, 2009). Those that perform well are not consistent over the years. On this basis, the best form of portfolio management is the hybrid system. This is because it is a combination of the passive and active investments strategies (Wieland, 2010). On this note, the hybrid system combines the advantages of these two investments strategies, as well as mitigating their disadvantages. Question Number Two: Toporowski (2010) denotes that one major strength of a projected P/E is its ability to explain the degree of confidence upon which investors have on a company. Toporowski (2010) further denotes that a P/E which is low in value will imply that investors do not have confidence with the company. On the other hand, a P/E which is high will denote that investors have confidence with the company. Investors will therefore purchase the various securities and stocks of these companies. On this note, the projected P/E ratio provides a guideline in which investors will know a company that performs well or not. However, the P/E ration has limitations. This is because the P/E ratio uses earnings as its indicator. It is important to denote it is possible to manipulate the earnings of a company. On this note, it is therefore possible to distort the P/E ratio of a company (Toporowski, 2010). However, one disadvantage of P/E is that it does not factor in the debts of the company; in fact, it only puts an emphasis on the price and market capitalization of the company under consideration. CAPE on the other hand is a technique which has the capability of predicting long term returns of a financial investment/security. However, it is unable to predict short term returns on a financial investment (Madura, 2012). Question Number Three: Grannum (2012) denotes that high frequency market leads to an increase in volatility. This in turn leads to a high liquidity in the securities market (Grannum, 2012). An increase in liquidity that is brought forth by high volatility is not a good thing for the securities market. This is because it increases speculations, which in turn will either reduce or increase the prices of the stocks or financial securities. It is important to denote that an increase in volatility increases the levels of changes of a stock. This is a conducive atmosphere for speculative trading to take place (Lee, 2011). This unpredictable change is therefore not conducive for an investor, therefore adding volatility by adding liquidity is not justified. This unpredictable change in the stock prices are brought about by speculative investor (Grannum, 2012) . It is also important to denote that fast-paced trading at the market is disadvantageous to other participants. This is because an order can be bought or sold before these people make a bid or request for the order under consideration. Flash orders on the other hand involves sending a certain stocks to certain investors such as banks, or even hedge funds before those shares are rolled out at the securities market. However, this service is controversial, with some investors accusing the stock exchanges of creating two markets, and being biased to another. They also denote that flash orders promote the trading ahead of orders by a small number of selected investors (Lee, 2011). However, it is important to denote that flash orders help to create liquidity, and they are in no means upfront trading. This is because they only last a matter of seconds, and this is enough for firms using a high frequency trading technique to respond. Flash orders are also small in number, and they cannot make any significant change in the market (Lee, 2011). Even though controversial, this technique of trading is legal under regulation 602 of stock market rules. Question Number Four: Greater openness by the Fed is a good issue, and this is because by communicating, the Fed is giving guidance to investors on how to invest, and the performance of the economy. Through better communication, the Federal Reserve will help the actors of the market to make good investments decisions, ensuring a return to their investments. Take for example when the Federal Reserve denotes that it is going to keep interests at a very low rate for a long period of time. By giving out this information, monetary organizations will be willing to lend money to people at a very lower rate (Hens and Rieger, 2010). It is important to denote that the Federal Reserve will always create some market waves through the information that they provide. This is because such kind of information will always affect the future of the countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s monetary market. But, it is also important to denote that failing to provide the information under consideration will lead to uncertainties amongst investors. On this note, they will try to make their investment decisions through guesswork (Kaeppel, 2009). Hen and Rieger (2010) observe that these traders will not like it if the Federal Reserve fails to provide relevant information concerning the performance of the economy. This is because they depend on the information provided to make investment decisions (Hens and Rieger, 2010). To balance the various concerns regarding recession and inflation, the Federal Reserve should create policies that will help them monitor how people are spending their money, at the same time creating a policy that will encourage people to save some of their monies. Question Number Five: In my own opinion, the use of derivative is beneficial to the market. This is because if they are used effectively, derivatives can help investors to make profits from rate shifts in the currency exchange, changes in equity markets, and interest rates, and from changes in the international supply and demand of agricultural commodities and industrial metals. It is important to denote that there are two major benefits of derivatives, namely risk management and price discovery (Kawai and Prasad, 2011). Under price discovery, it is important to denote that the market prices of various stocks depend on the continuous movement of information. Information on factors such as debt default, refugee displacement, climatic conditions, environmental factors and political situations play a role in influencing the future prices of stocks. Information concerning these factors and the manner in which people absorb this type of information constantly affects the future price of the commodity under consideration (Sabalot, 2012). This is an aspect referred to as price discovery. It is important to denote that some derivative contracts are always based on these stocks. Another important function of the derivative market is the risk management role. Risk management refers to the process of identifying the desired and actual levels of risks, and altering the actual level of risk, to be equal to the desired level of risks. This process of risk management can fall under the categories of speculation and hedging. Hedging is referred to as a strategy or reducing risks by holding a market position. Speculation on the other hand refers to predicting the manner in which a market will move. Speculation, hedging and derivatives are an effective methods of managing risks by investors. References: Barnes, P. (2009). Stock market efficiency, insider dealing and market abuse. Farnham, Surrey, England: Gower. Grannum, S. D. (2012). Securities arbitration 2012. New York, NY: Practising Law Institute. Hens, T., Rieger, M. O. (2010). Financial economics. Berlin: Springer. Kaeppel, J. (2009). Seasonal stock market trends the definitive guide to calendar-based stock market trading. Hoboken, N.J.: John Wiley Sons. Kawai, M., Prasad, E. (2011). Financial market regulation and reforms in emerging markets. Washington, D.C.: Brookings Institution Press. Lee, R. (2011). Running the worlds markets the governance of financial infrastructure. Princeton, N.J.: Princeton University Press. Madura, J. (2012). International financial management (11th ed.). Mason, OH: South-Western, Cengage Learning. Sabalot, D. A. (2012). Butterworths securities financial services law handbook (13th ed.). London: LexisNexis. Toporowski, J. (2010). Why the world economy needs a financial crash and other critical essays on finance and financial economics. London: Anthem Press. Wieland, V. (2010). The science and practice of monetary policy today the Deutsche Bank Prize in Financial Economics 2007. New York: Springer.

Film Analysis La Sortie Des Usines Lumiere A Lyon

To begin with, the 19th century is the time when the history of film started existing. It began in the 1890s, with the invention of the first motion-picture cameras and the establishment of the first cinemas and film production companies. The films of the 1890s were very simple, they were seen mostly via temporary storefront spaces or traveling exhibitors. Most of the films were under a minute long that presented a single scene, a public event of everyday life, a sporting event or something similar. The cinematic techniques were not well developed yet, so there were usually no camera movements at all with just a few people in the scene.  «Workers Leaving The Lumià ¨re Factory in Lyon » (Original: La Sortie des usines Lumià ¨re à   Lyon), is one of such films that was created in 1895 directed and produced by Lumià ¨re brothers. This is a French short black-and-white silent documentary film, which is often referred to as the first real motion picture ever made. In the history of film  «Workers leaving the Factory » is considered as the first film that was shown in public. This film was shown on 28 December 1895 at the Grand Cafà © on the Boulevard des Capucines in Paris, along with nine other short movies. Then this day became referred to as the day of cinema birth. The production of films is a very important aspect of creating it, especially when we are talking about old black-and-whit films. Till 1985 most films were shot with a help of Edison s Kinetoscope, however, Luiere brothers

The History of Jazz free essay sample

The work chants and folk music of black Americans are among the sources of Jazz, which reflects the rhythms and expressions of West African song. Ragtime, an Afro-American music that first appeared in the sass, was composed for the piano, and each rag is a composition with several themes. The leading ragtime composer was Scott Joplin. The first improvising jazz musician was the corniest Buddy Bolder, leader of a band in New Orleans.The first jazz bands were usually made up of one or two cornet players who played the principal melodies, a clarinetist and trombonist who improvised countermeasures, and a rhythm section (piano, banjo, string bass or tuba, and drums) to accompany the horns. These bands played for dancers or marched in parades In the South. Some of the first New Orleans musicians were among the most stirring of all Jazz artists. They Include clarinetist Johnny Odds, clarinetist-soprano saxophonist Sidney Becket, pianist Jelly Roll Morton, and corniest King Oliver. We will write a custom essay sample on The History of Jazz or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The first jazz record was made in 1917 by a New Orleans band the Original Dixieland Jazz Band, made up of white musicians who copied black styles. The New Orleans musicians discovered that audiences were eager for their music in the cities of the North and the Midwest. In the sass Chicago became the second major Jazz center. White Chicago youths, such as tenor saxophonist Bud Freeman and clarinetist Benny Goodman, were excited by the New Orleans masters including the thrilling Louis Armstrong, who played In King Olivers band.The third major Jazz center was New York City, and It became the most Important. In New York, pianists such as James P. Johnson created the piano style by transforming rags and Southern black folk dances into jazz. Jazz was first played in the ballrooms and theaters of New York. Louis Armstrong was among the Jazz musicians who accompanied Ma Rained and the rich-voiced Bessie Smith, the classic blues singers of the sass. When Armstrong began singing, too, he scattered songs by improvising his own phrases and nonsense syllables.Billie Holiday was only a teenager when she began her singing career. She subtly changed the notes and rhythms of popular songs to give them new, often ironic meanings. Ella Fitzgerald was the popular favorite among later swing scat vocalists. The bop era, which lasted from about 1945 to 1960, was also the period of cool jazz. Sass. Many bop pieces were played at the fastest tempos yet heard in Jazz. Bop featured many-noted solos and unusual, quickly changing harmonies. The opposite of cool Jazz was hard bop, which was played in the Eastern cities.Hard bop was vigorous and energetic and emphasized the Afro-American basis of Jazz. The sass also brought forth composers who were not considered either bop or hard bop creators. The traditional forms of Jazz songs were abandoned by Lewis, Nichols, and George Russell, who wrote complex, brightly colorful works for big bands. Chicago revived as a Jazz center in 1965 when a cooperative, the Association for the Advancement of Creative Musicians , was formed to produce concerts and to teach music to inner-city youths.European enthusiasm about post-1960 Jazz led to two important trends of the sass and sass. First, improvising musicians from many countries were inspired to draw on their individual musical heritages to create new kinds of Jazz. The most popular result of this trend to variety has been fusion music, which Joins Jazz, rock, and Latin-American rhythms. The concert on Wednesday night was pretty monotonous, my passion is for dance music and hard ,uplifting beats,such as rap, rock, and house. I did enter the auditorium with an open mind, but Jazz did not click.