...Markets have been around for a really long time. No not the markets your parents go to so they can get groceries this kind of market is where the supply and demand of items are measured called the stock market. The stock market crashed on September 29, 2008. The Dow Jones Industrial Average fell 777.68 points in intraday trading. That was the largest point drop in any single day in history. It plummeted because Congress rejected the bank bailout bill. A stock market crash is a rapid and often unexpected drop is stock rates. When the stock market crashes it causes the world to worry especially when the stock market crashes in a major time period such as a war. the supply of the product is rapidly decreasing while the demand stays the same or...
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...the number one traded company in the world. Currently Exxon is traded on the New York Stock Exchange, is a Dow Jones Industrial Average Component as well as a S&P 500 Component (Exxon Mobil). When it comes to oil, Exxon Mobil does it all. With 102,700 employees, Exxon has broken its operations into two main categories Upstream and Downstream (Yahoo Finance). Exxon does partake in other types of operations such as it operates coal mines and has its own IT, real estate, help center, as well as an engineering and chemical research and development department which fall under the umbrella of Exxon Mobil Corp (Exxon Mobil). Exxon’s two main divisions are incredibly important in keeping its industry advantage, where the Upstream sector is responsible for the exploration of new resources in an efficient and economical manner. The Upstream sector also extracts resources and then deals with the wholesale and distribution of the minerals. The Down Stream operations include refining the mineral and managing retail operations and marketing. Due to Exxon’s vast capabilities and duties within its industry, Exxon finds itself competing with many other companies that are fighting for a share of the market revenues. Just a few of its large competitors are Chevron, BP, Cabot Oil and Gas, Marathon Oil Corp (Yahoo Finance). There are also a number of overseas oil competitors such as Saudi Arabian Oil Co, National Iranian Oil Co, and Royal Dutch/Shell (Market...
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...The country's current economic crisis is creating a sense of deja-vu for Americans who were around in the 1930's and early 40's, Franklin Delanor Roosevelt said it best, "we have nothing to fear but fear itself". banks right now aren't failing; they just don't have additional money to give out loans. During The Depression people were taking out high-risk loans to buy stocks, and when the stock market plummeted, no one could sell their stocks for what they owed on them. This caused banks to crash, and when that happened stock speculators weren't the only ones who lost everything, all the customers did too. There was people borrowing money to buy stocks thinking that the stock would continue to go up and they could sell out of those stocks and make a good gain, obviously they didn't understand that the stock market goes up the stock market can come down. But the similarities between then and now are glaring. The inability to pay loans hurts banks, which causes banks to tighten credit lending. Tightened credit lending hurts businesses, causing them to downsize. People lose their jobs and don't have money to spend on goods and services. The private market got in trouble back in the twenties and government got us out. Now the government got us into the problem and the government is going to get us out. The FDIC insures deposits up to one hundred thousand dollars, but finance experts believe something needs to be done soon in order to restore banks' capital, so the United States credit...
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...Financial Institutions in the Stock Markets Running Head: Financial Institutions in the Stock Markets Financial Institutions in the Stock Markets: Market Capitalization, EPS Growth, and Investor Expectations Influence on Stock Prices Introduction Wild gyrations, extreme peaks and valleys, and fear and mania; this has been the epitome of the stock markets not just historically but over the last decade. Ten years ago, the NASDAQ was at an all time high exceeding 5,000 in March of 2000, the DOW was exceeding 11,000 and the general state of the economy was very favorable. Internet companies were being spawned by the hundreds and many of them turned once struggling entrepreneurs into instant millionaires. Internet IPO’s were the hottest thing since sliced bread and many thought there was no end to the rise of the new technology companies. Alas, right after the NASDAQ peaked in March 2000, a precipitous drop occurred and the markets plummeted. Just a year prior, the NASDAAQ returned nearly 90%, but one year later it plummeted 40% and continued dropping. The bear market of 2000-2002 erased all gains of the NASDAQ that to this day hasn’t even recovered half of its gains. The mood of investors and the American public quickly went from great to grim. The American and even global economy is strongly tied to the performance of our public companies. These public companies make up trillions of dollars in annual revenue. In fact, in the total market cap in 2008 of all publicly...
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...Balsillie. Balsillie is a Harvard Graduate with an MBA. In 1999, Research in Motion introduced the BlackBerry 850 pager. The new development was a two way paging system that could send wireless messages and emails through the network. The pager was the size of a bar of soap. The pager was considerably popular in the corporate world because it allowed businessmen/businesswomen to be able to take important messages while on the go. Between the years of 1999 through 2003 sales of the pagers hit an all-time high. During the year 2002 BlackBerry added voice calling to the BlackBerry 5810 model and the very next year releases its BlackBerry with a color screen. During the years 2004 through 2007 BlackBerry was at an all-time high. By the end of 2004 Research in Motion had more than 2 million subscribers. In 2005 BlackBerry was named 100 most influential people by Time magazine. “In 2007 RIM becomes the most valuable company on the TSX (Toronto Stock Exchange) with a market capitalization surpassing $67 billion.” (Global News and The Canadian Press). In 2007, Apple launched the new and innovative iPhone. BlackBerry took a big hit in the stock market from $149.90 per share to below $50. In the upcoming years BlackBerry seemed to not be able to keep up with Apple’s innovative iPhone or iPad. During the year 2012, both Lazaridis and Balsillie stepped down as co-CEO’s of the company. After...
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...Balsillie. Balsillie is a Harvard Graduate with an MBA. In 1999, Research in Motion introduced the BlackBerry 850 pager. The new development was a two way paging system that could send wireless messages and emails through the network. The pager was the size of a bar of soap. The pager was considerably popular in the corporate world because it allowed businessmen/businesswomen to be able to take important messages while on the go. Between the years of 1999 through 2003 sales of the pagers hit an all-time high. During the year 2002 BlackBerry added voice calling to the BlackBerry 5810 model and the very next year releases its BlackBerry with a color screen. During the years 2004 through 2007 BlackBerry was at an all-time high. By the end of 2004 Research in Motion had more than 2 million subscribers. In 2005 BlackBerry was named 100 most influential people by Time magazine. “In 2007 RIM becomes the most valuable company on the TSX (Toronto Stock Exchange) with a market capitalization surpassing $67 billion.” (Global News and The Canadian Press). In 2007, Apple launched the new and innovative iPhone. BlackBerry took a big hit in the stock market from $149.90 per share to below $50. In the upcoming years BlackBerry seemed to not be able to keep up with Apple’s innovative iPhone or iPad. During the year 2012, both Lazaridis and Balsillie stepped down as co-CEO’s of the company. After...
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...have possible be occurred. Three such laws that were implemented due to financial catastrophe include the Securities Act of 1933 & 1034, the Foreign Corrupt Practices Act of 1977, and the Sarbanes - Oxley Act. I. Securities Act of 1933 & 1934 A. Summary of Regulation * Securities Act of 1933 * First major federal legislation to regulate the offer and sale of securities * Created by Congress during the aftermath of the stock market crash of 1929 and during the ensuing Great Depression * Purpose is to make sure that buyers of securities receive complete and accurate information before investing (Graham, Hazarika, & Narasimhan, 2011) * Securities Act of 1934 * Created to provide governance of securities transactions on the secondary market (after issue) and regulate the exchanges and broker-dealers in order to protect public investors B. Analysis of Related Fraud/Scandal * Crash of 1929 * The most devastating Stock Market crash in US history * Signaled the start of the Great Depression * Great Depression * Followed a decade of progress that many people thought was going to continue * A period of deep social and economic stress * Gross National...
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...Company" for six consecutive years. At the end of 2001, it was revealed that it’s reported financial condition was sustained substantially by institutionalized, systematic, and creatively planned accounting fraud, known as the Enron scandal. Enron has since become a popular symbol of willful corporate fraud and corruption. The scandal also brought into questions the accounting practices and activities of many corporations throughout the United States and was a factor in the creation of the Sarbanes–Oxley Act of 2002. The scandal also affected the wider business world by causing the dissolution of the Arthur Andersen accounting firm. The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the de facto dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world. In addition to being the largest bankruptcy reorganization in American history at that time, Enron was attributed as the biggest audit failure. Enron was formed in 1985 by Kenneth Lay after merging Houston Natural Gas and InterNorth...
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...INTRODUCTION: Sub-prime lending usually refers to the practice of giving loans to those who do not qualify for regular loans at market interest rates because of their poor credit history. Due to the increased risk associated with the takers, sub-prime loans are offered at a rate higher than market rates. These loans are risky for both, those who are giving and those who are taking, because these combine high interest rates, bad credit history, and often, murky financial situations of the takers. Subprime lenders use a risk-based pricing system to calculate the terms of loans, including the interest rate, which they offer to borrowers with varying credit histories. The securities issued by subprime lenders tend to carry more credit risk but less interest rate risk than securities backed by prime loans. This is because subprime borrowers tend to have a shorter time horizon and fewer opportunities to refinance when interest rates fall. SUB PRIME CRISIS: The subprime mortgage crisis, popularly known as the “mortgage mess” or “mortgage meltdown,” came to the public’s attention when a steep rise in home foreclosures in 2006 spiraled seemingly out of control in 2007, triggering a national financial crisis of USA that went global within the year. Consumer spending was down, the housing market had plummeted, foreclosure numbers continue to rise and the stock market had been shaken. The subprime crisis and resulting foreclosure fallout has caused dissension among consumers, lenders...
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...Ahold 1. Select a stock-listed company and describe its core business, production location, number of employees and markets. Koninklijke Ahold N.V., Ahold for short, is an international retailing group based in the Netherlands. Ahold is one of the global market leaders in the food retail and wholesale business and retails food through supermarkets, convenience stores and online food retail businesses in the United States and Europe. The company started in 1887 with the founding of a small grocery store in Oostzaan, the Netherlands. In the first decades of the twentieth century, Albert Heijn exploited 25 grocery stores, began producing food products and owned production facilities for products like coffee, chocolate and meat. In 1955 the company shifted their format to become a supermarket chain. In the sixties Albert Heijn became the number one company in the Netherlands in this branch. Ahold holding itself was formed in 1973. The aim of the formation of the holding company was for it to become a stock listed company which gave the opportunity to raise extra capital by issuing shares and to start its international expansion. Ahold developed itself into one of the most important food retailers in the world, through a string of acquisitions. Ahold still is among of the market leaders, along with Wal-Mart (USA) and Carrefour (France). Ahold’s core business is retail (particularly supermarkets) and they operate in the food retail and wholesale market. They operate their...
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...World Wide Web History Bubble History of the WWW ECOM 210 World Wide Web History Introduction Founded in 1989 the World Wide Web went from an impossible idea to a worldwide phenomenon that has fused itself into the needs of the people. I remember years ago when computers were just those gross green screened monitors that only allowed you to type a report. Now with the help of the internet our use of computer technology has reached amazing heights. We can reach people around the world with just a click of a mouse. “The web has changed the world. It has arguably become the most powerful communication medium the world has ever known” (webfoundation.org). Reading the webs history helps me to really see how the development of this great tool has geared us to an era of becoming completely technically inclined. The web is available everywhere you go from restaurants to coffee shops also with it being a feature on your mobile device it never leaves the side of the consumer. Internet access has become just as much of a need as toilet paper. In most cases jobs, schools and so on has built there curriculum and foundation around it. Without the web we would not have achieved the ability to have direct access to our bank accounts via applications or to send an email picture of friends and family to others around the globe. Although I grew up in the early 80’s at the peak of technology before the internet even existed I now cannot imagine a world without it. “The Internet is...
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...How did the Global Financial Crisis impact Central Banks in terms of gold purchasers? Introduction What had started in the US transmitted itself around the globe causing major uncertainly and panic, the Financial Crisis, which began in mid-2007, was the first major recession of its kind since the Great Depression of the 1930’s. Most of the developed and developing economies of the world felt the full force of it, causing major declines in financial assets, both traditional ones such as equities and newly-developed ones such as mortgage-backed securities. For two decades prior to the Global Financial Crisis, central banks around the world were net sellers of gold, however, since then, the central banks have begun to buy gold. In a video entitled Gold and silver game changer, Michael Maloney uses the 2008 and 2009 CPM Gold yearbooks to illustrate the “the biggest shift in the bull market since the 70’s”, where in 2009, central banks were expected to sell some 4 million ounces of gold; instead, when the 2009 real numbers came in, they had purchased 15 million ounces. This shift in purchasers has come about due to the distrust central banks place on the US dollar, the major currency in the world and the metal’s ability to act as a ‘safe haven’ in times of economic volatility. Golds distinctive properties and its distinction to fiat currencies make it an attractive investment for anyone’s reserve portfolio, especially during times of economic downturn. Table 1 CPM 2010 Gold yearbook ...
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...collapse of Enron impacted many individuals and organizations throughout the world. The extent and severity of each depends on the situation. But one common factor is that all impacts were proven to be negative. Although, it was one of the greatest corporate learning experiences for the entire world. Enron was at its peak in 2000 with stock prices around $90.00 a share. As the company failed, stock prices plummeted to a mere $.67 a share. The company’s thousands of employees had invested their life savings and retirement accounts into the once promising shares. As the company failed, the executives secretly sold off their stock and continued to alter the books. The helpless employees had no choice but to sit back and watch everything they worked for disappear. The employees were left with a life of uncertainty and instability. They were now unemployed and left with an empty bank account. Most would never recover a dime if it wasn’t for the reduction of Jeff Skilling’s sentence in 2013. Skilling’s estimated worth over $40 million. The accounts have been frozen since his arrest and under this new settlement; the prison sentence would be reduced if the $40 million is distributed to those that lost everything when Enron collapsed. The severity of this case has lead to several safeguards being put in place. The Sarbanes-Oxley Act was passed in 2002 as a result of this scandal. The act consists of 11 different parts. The most important were created as a result of the accounting...
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...Stock Market Assignment The stock market plays an important role in businesses today. Becoming an investor proved how important it is to understand the stock market. This assignment gave me the opportunity to research and invest in different companies and to learn about the stock market. I also had the opportunity to watch the S&P 500, NYSE, and the NASDAQ, and reflect on market changes and challenges. When choosing stocks to invest in, I was looking to create a diverse portfolio by choosing a variety of industries, price ranges, well known companies and some that were new to me. I visited their websites, read mission statements, and reviewed past performance, learning as much as I could about each company before investing. I viewed the price graphs using ClearStation when looking for companies to invest in. I was looking for companies who have had a gradual but consistent increase in stock price over the past three to six months. I was not willing to invest in a company who had extreme jumps in price. Overall I invested almost $200,000 in twelve different companies. Coke, Hertz, Best Buy, Crocs, Toro, and Bud were all brands I invested in because they were well known to me. These companies or products have been around for years and have a long standing relationship with the consumers. I was able to use the website ClearStation to view past stock market performance before investing. One of the things I was looking for in the mission statement or website was...
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...NBER (National Bureau of Economic Research) states that a recession is a period between a peak and a trough, which does not necessarily always consist of two consecutive quarters of decline in real GDP but a significant decline in economic activity that spreads across the economy and can last from a few months to more than a year. [1] The first recession we are going to explore is The Great Depression which many say started as a recession. Although the economy began to decline in the middle of 1929 and continued to fall until the first few months of 1933, Black Tuesday, (October 29, 1929) was the day the stock market crashed and what many people affiliate to the beginning of the Great Depression. Stock prices plummeted, and since many banks had also invested large portions of their clients' savings in the stock market, they were forced to close when the stock market crashed. People saw banks closing which caused another panic across the country because people where afraid they would lose their own savings, so they rushed to banks that were still open to withdraw...
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