Owner: James Cox finance URL:http://www.jamescox.com.au Join Date: Sun, 20 Apr 2008 08:01:11 -0500 Rating:0 Site Description: This blog explores finance, investing, the stock market and trading. It provides a simple and evolving perspective on the financial world from the perspective of a non-expert. Site statistics:Click here
When and why to sell a stock short; short selling strategies and examples (Pt 2) 2008-04-20 02:27:04 Welcome to part two of my blog called when and why to sell a stock short which gives a good fundamental analysis of short selling
stock.
Short selling strategies
Short selling strategies are used in speculation, hedging, arbitrage and ‘against the box’ strategies. Many investors believe that a good combination of short and long positions on stock [...]
When and why to sell a stock short; rules and strategies (Pt 1) 2008-04-20 02:15:58 Many investors have heard of the concept of short selling and perhaps even many of those people are familiar with the rules of short selling and the strategies behind doing it.
It is intrinsically a very risky move as you are betting against the upward trend of the stock market in the hopes that a stock [...]
The benefits of an economic recession and how to prepare for one 2008-04-16 00:57:05 I recently read an interesting article about the potential upsides that accompany a recession. With much talk of a recession in the coming months in Australia and one already on the cards in the USA, I thought it may be worthwhile to outline some of the positives that accompany the fear associated with a recession.
Ultimately, [...]
What is involved in a career in investment banking ? 2008-04-11 02:27:04 After reading The Accidental Investment Banker by Jonathan Cree, I thought my first blog on investmentbanking
and corporate finance was due.
From my understanding of investment banking, many people simply don’t understand it. Is it banking? Is it investing? Is it Gordon Gecko in the movie Wall Street or is he a trader? What is [...]
Stock market beginners - What moves the stock market and stock prices? 2008-04-06 06:56:43 What factors move the stock market? What about individual stocks? How do interest rates affect the stock market and what does this have to do with the Consumer price index and inflation?
Many people know that economic factors like corporate profits and interest rates tend to influence the movement of the broader stock market. However, I [...] Read more:Stock
, moves
“Stock doesn’t know you own it” - Warren Buffet Video 2008-04-01 02:03:24 This WarrenBuffet
video is taken from a question and answer session he made to a group of MBA students at the University of Florida years ago.
Watching the speech in its entirety is very captivating as he is an incredibly switched on character but yet still incredibly humble and funny throughout.
His understanding and communication of [...] Read more:Stock
, Warren Buffet
The four basic options trading strategies and risk profiles 2008-03-28 20:02:10 I am going to describe the potential risks and rewards associated with the four basic options strategies.
Options are probably the most versatile trading instrument ever invented. They provide a high-leverage approach to trading that can significantly limit the overall risk of a trade, especially when combined with stock or futures. As a result, understanding how [...]
How To Understand Options In Only 5 Minutes Starting From Scratch 2008-03-19 08:58:19 Understanding what options are, how options are used, and why options could be appealing in a successful trading strategy never used to be easy to understand for me (and I don’t think many others for that matter). After doing a course in financial mathematics a couple of years ago, I could calculate the value of [...] Read more:Understand
, Options
, Scratch
11 step guide to create a business plan to attract investment 2008-03-16 02:22:35 Whilst reading Getting started in consulting by Alan Weiss, I came across the following 11 steps to go through to create
a business plan that is likely to attract investment
. I have listed them below:
1 - Company Particulars - Make sure to note the name of the company, the address, the type of public or [...] Read more:step guide
Six different types of public and proprietary companies 2008-03-14 19:30:44 Following on from my finance blog on company characteristics, I thought I would write a quick blog on the differenttypes
of companies that are common today.
Companies are classified according to liability, size and where they are listed. We will discuss the first two and the resulting 6 common types of companies we [...]
Buying stock through margin lending; leverage and margin calls 2008-04-27 07:58:48 Buying a stock through margin lending
Margin transactions involve buying securities with borrowed money.
Brokerage firms can lend their customers money to purchase securities and keep the securities as collateral, allowing the customer ride the inherent risk of the stock without the requirement of purchasing 100% of the stock.
The example below taken from a study guide to [...] Read more:Buying
, calls
What the media got wrong about the Opes Prime Collapse and Beaconwood ruling 2008-05-04 10:19:25 After reading the article Opes client loses court Bid, by Chris Zappone in the SMH and the Age, I had a desire to not only consider a career in popular legal journalism but to write a blog about the ANZ Bank, Beaconwood Securities and the rest of the companies and individuals that have been affected [...] Read more:media
, ruling
The Advantages of a Company Going Public or ‘Floating’ 2008-05-11 00:15:09 Whilst reading IPO and Equity Offerings by Ross Gedes, I came across the following advantages of going public. These will be compared with the disadvantages of going public in a later post.
The advantages of going public that will be discussed in this article include:
Liquidity and increased share price,
Management and employee motivation,
Enhanced image/prestige,
Access to alternative sources [. Read more:Advantages
, Going
, Public
, Floating
The Disadvantages of a Company Going Public or ‘Floating’ 2008-05-14 19:32:36 Following on from my post about the advantages of company going public, The following article discusses the disadvantages of a company going public through an IPO; as outlined in IPO and Equity Offerings by Ross Gedes.
The disadvantages brought about through the flotation of a company in an IPO are typically perceived differently by different [...] Read more:Going
, Public
, Floating
Mergers and Acquisitions Career; What is involved and is it for you? 2008-05-21 11:11:59 Mergers and Acquisitions
To many in the finance industry and the general population, mergers and acquisitions work can seem very glamorous and high profile. The mergers and acquisitions group (known as M&A) provides advice to companies that are buying another company or are themselves being acquired.
At the same time, the work leading up to the headline-grabbing [...] Read more:Career
The Collapse of Long Term Capital Management; Hedge Funds and Leverage 2008-05-26 20:14:04 After watching another short excerpt of a Warren Buffet speech, I thought I may quickly summarise the collapse of the famous Hedge
Fund, Long Term
Capital Management
. But First, Watch this excerpt, it is both funny and informative.
I have sourced most of the information below from an excellent paper done by Gregory Connor and Mason [...] Read more:Funds
, Leverage
, Hedge Funds
Hedge Fund Trading Styles and Strategies Uncovered 2008-06-03 20:15:20 There are four broad styles of hedge funds and multiple hedge fund strategies beneath each style which are discussed at length in the book Hedge
Funds Demystified by Scott Frush. This article summarises the four broad hedge fund styles and provides an insight into the management of hedge funds.
In many cases, Hedge Fund
managers combine [...] Read more:Trading
, Styles
, Strategies
Understanding Technical Analysis and Fundamental Analysis in Investing 2008-06-15 10:59:44 This article is primarily intended to give an introduction to how technical analysis is used to make investment and stock market trading decisions. It will also compare the position of technical analysts to fundamental analysts in terms of what information and data each group uses in their quest for high returns.
I have sourced most of [...] Read more:Understanding
, Technical
, Analysis
, Fundamental
, Investing
Careers Paths, Tough Decisions And Saving Sex Until Your Old Age 2008-06-23 07:05:33 Finance just isn’t flowing through my proverbial veins this week, so I thought a slightly more personal and far less theoretical blog was in order.
Hopefully, this blog will serve the purpose of getting my regular readers (I know you’re out there) somewhat more acquainted with me and it may serve as a useful collection of [...] Read more:Paths
, Tough
, Decisions
, Saving
, Until
Australian Law Firm Summer Clerkship Careers Site Links and resume advice 2008-07-03 10:17:32 Clerkship Applications, Clerkship Interviews and Law Resumes
For the law students out there who are completing the somwhat daunting legal summer clerkship or articles clerkship applications at the moment, I thought it may be helpful to provide a set of links to each of the predominant Australian
Law Firm careers sites.
It is not an easy job [...] Read more:Summer
Glossary Of Frequently Used Symbols in Corporate Finance 2008-07-01 17:32:28 Whilst this is again not one of my more substantive posts, I thought the following glossary of frequently used symbols in corporate finance may be of some interest:
ANk Annuity factor for N years and an interest rate of k
ABCP Asset Backed Commercial Paper
ACES Advanced Computerised Execution System
ADR American Depositary Receipt
APT Arbitrage Pricing Theory
APV Adjusted Present [...] Read more:Glossary
Investment Banking Interview Questions and Tips 2008-07-01 09:15:49 Practising investment banking / finance interview questions will be crucial in order to distinguish yourself from the next commerce / law graduate with first class honours who probably has a very similar resume to yourself.
How to get into investment banking
Whilst I do not speak from experience, I hope the following investment banking interview questions [...]
Business and Company Valuation; Discounted Cash Flow and Multiples 2008-07-14 23:54:53 Business and Company Valuation
“What is a business worth?” Although it seems simple, determining the value of any business requires experience, sound judgment from market and industry experience and at least some understanding of financial analysis.
Underpining everything that is outlined below however (much of which I sourced from wstselfstudy.com), I am certainly a part of the [...] Read more:Business
, Discounted
, Multiples
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