...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 traded US companies was over $16...
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...Stock Market Deliverabl Stock Market Deliverabl Stock Market According dictionary.com, the stock market can be defined as “a highly organized market facilitating the purchase and sale of securities and operated by professional stockbrokers and market makers according to fixed rules”. This market is it is one of the most vital areas of a market economy as it provides companies with access to capital and investors with a slice of ownership in the company and the potential of gains based on the company's future performance. Buyers and sellers come together to trade during specific hours on business days. Exchanges impose rules and regulations on the firms and brokers that are involved with them. If a particular company is traded on an exchange, it is referred to as "listed". Companies that are not listed on a stock exchange are sold OTC (short for Over-The-Counter). Companies that have shares traded OTC are usually smaller and riskier because they do not meet the requirements to be listed on a stock exchange. Stock Market Evaluation There are three major indexes to evaluate the overall performance of the stock market. These indices are discussed in more detail below: The Dow Jones The Dow Jones Industrial Average (DJI) is one of the oldest, most well-known and most frequently used indexes in the world. It includes the stocks of 30 of the world's largest and most influential companies. The DJI is what's known as a price weighted index. It was originally computed...
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...A Discussion about the NYSE and NASDAQ Dannielle Gribble American Intercontinental University Abstract The purpose of this paper is to discuss both the differences and likenesses between NASDAQ and the NYSE. Also mentioned in this paper is a brief discussion about “The Public Company Accounting and Investor Protection Act of 2002” and its impact on public businesses as well as the investors thereof. A Discussion about the NYSE and NASDAQ NASDAQ and the NYSE are both popular in the sector of trading. NASDAQ represents National Association of Securities Dealers Automated Quotation and NYSE stands for the New York Stock Exchange. As I researched the NYSE and NASDAQ, I was only able to locate a few similarities between the two companies. The first similarity is that both NASDAQ and NYSE are companies that participate in the business of stock exchanging. The second similarity that both NASDAQ and the NYSE share is that they both match the necessity for stock supply and demand. The third similarity between NASDAQ and NYSE is that they both hold most of the equity that is traded in the US. That is made possible, in that, most of the trading that occur in the US takes place by either NASDAQ or the NYSE. The fourth similarity is that both companies offer high-end services for trading. While there are a few similarities between NASDAQ and the NYSE there are definite differences between the two. One difference is that NASDAQ is commonly recognized as the high-tech...
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...University November 17, 2013 IP 1 1. How are the NYSE and NASDAQ similar, if at all? In basic structure the NYSE and the NASDAQ are similar. They are both companies that can provide the service of trading stocks. Each company is open to the public and gains profits for their shareholders. NYSE and NASDAQ are both regulated by the Securities and Exchange Commission. Within each company the trading of stocks is done by traffic controllers, and these two companies account for a huge share of trading in the United States. With the use of these stock exchange facilities it allows public companies to raise capital. 2. How are the two exchanges different from one another, if at all? Both the NYSE and NASDAQ have differences from one another. The first major difference happens to be in their mission statements of the companies. The NYSE mission statement is as follows, “The mission of the NYSE is to add value to the capital-raising and asset management process by providing the highest-quality and most cost-effective self-regulated marketplace for the trading of financial instruments , promote confidence in and understanding of that process and serve as a forum for discussion of relevant national and international policy issues”. However the mission statement from NASDAQ is, “as the world’s largest exchange company, NASDAQ is driven to delivering multi-asset, multi-service capability across every major continent. NASDAQ provides forward thinking services and technology that have...
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...Chapter 8: Institutions and Procedures in Secondary Markets A. Exchanges and Floor Markets The Securities and Exchange Act of 1934 defined an exchange to be: any organization, association, or group of persons, whether incorporated or unincorporated, which constitutes, maintains, or provides a market place or facilities for bringing together purchasers and sellers of securities or for otherwise performing with respect to securities the functions commonly performed by a stock exchange as that term is generally understood, and includes the market place and the market facilities maintained by such exchange. An exchange is typically a physical or virtual meeting place drawing together brokers, dealers and traders to facilitate the buying and selling of securities. Thus, exchanges include the floorbased markets as well as many virtual meeting sites and screen-based systems provided by Electronic Communications Networks (ECNs). In the United States and most other countries, exchange transactions are executed through some type of auction process. Exchanges in the United States are intended to provide for orderly, liquid and continuous markets for the securities they trade. A continuous market provides for transactions that can be executed at any time for a price that might be expected to differ little from the prior transaction price for the same security. In addition, exchanges traditionally served as self-regulatory organizations (SROs) for their members, regulating and policing their...
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...University Company of Choice Citi Trends is my company of choice. I chose this company because I shop there for my kids and myself. The clothing is of good quality and they always new and fresh clothing that appeals to every age and they are affordable. They always have new ideas and stay focused on the latest trends. Interesting facts They offer name brand clothing at a cheaper cost than you would find in an upscale retail store. It is a value priced retailer of urban fashion apparel. They provide recognized branded merchandise at discounts off department and specialty store prices at a rate of 20-70% discounted prices. It became a publicly trade company in 2005 on the Nasdaq exchange with CTRN as its symbol There was a closing of one store and they either relocated or expanded three stores in the third quarter giving a total of 505 stores (Citi Trends, 2012). Edward Anderson has been the CEO of Citi Trends has been Chairman of Board of Directors since May 2006. He has served as CEO from 2001 to April 2009 and ahs recently returned to the position in January 2012. He was CFO of Variety Wholesalers. Prior to that he was Chairman and CEO of Rose’s Stores (Citi Trend, 2014). Bruce D. Smith is CFO, Executive Vice President of Citi Trend since March 2010. He has served as CFO and Senior Vice President since April 2007. He also served as CFO, Treasurer, and Executive Vice President of Hancock Fabrics from 2005...
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...(508) 533-4300 FOR IMMEDIATE RELEASE Cybex Reaches Settlement in Barnhard Product Liability Suit Medway, MA, February 6, 2012 -- Cybex International, Inc. (NASDAQ: CYBI), a leading manufacturer of premium exercise equipment, announced today that it has reached a settlement in the product liability litigation, Barnhard v. Cybex International, Inc. Pursuant to the settlement, Cybex will pay to the plaintiff, net of insurance, approximately $19,500,000, of which approximately $18,500,000 will be paid at the consummation of the settlement with the balance paid over seven years. As part of the settlement, Cybex will be released of all further liability with respect to the litigation, which will be dismissed with prejudice. Cybex will satisfy its cash obligation through available cash, its existing line of credit and additional financing, which it is in the process of arranging with its principal bank. The settlement is subject to standard closing conditions, including the execution of a definitive settlement agreement by Cybex, the plaintiff and the third party defendant. Cybex anticipates that all conditions will be satisfied and funds disbursed within the next 30 days. As previously reported, Cybex currently is subject to possible de-listing from the Nasdaq Stock Market due to its failure to comply with the Nasdaq requirements for a minimum stockholders’ equity of $10,000,000, a minimum bid price for its common stock of $1.00 per share and a minimum market value of publicly...
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...Bed Bath & Beyond was started in 1971 by founders Warren Eisenberg and Leonard Feinstein, who originally called it Bed 'n Bath and opened the first store in New Jersey. As per the name, it initially only sold items for the bedroom and bathroom. By 1985, it had expanded to 17 locations. Two years after that, the name was changed to Bed Bath & Beyond to reflect its full range of "domestic merchandise and home furnishing," as the company puts it. By 1991, it hit $134 million in sales, going public on the NASDAQ stock exchange one year later. The company’s portfolio grew in other ways when the new millennium hit. It bought health and beauty retailer Harmon’s in 2002, and the nothing-but-tchotchkes Christmas Tree Shops the year after. In 2007, it acquired Buy Buy Baby, and in 2012, both Linen Holdings, LLC and Cost Plus World Market. Currently operating six different businesses, Bed Bath & Beyond, Inc. now owns a total of 1,512 stores, according to its most recent earnings call; Bed Bath is its largest subsidiary with 1,020, or 67%, of its total stores. Bed Bath’s merchandising concept—a massive space offering a plethora of products—is known in the retail world as "big box." It’s the opposite approach of carefully curated home stores like Williams-Sonoma and Crate & Barrel, but was widely popular when Bed Bath first hit the market. Toys "R" Us was the first retailer to adopt this "category killer strategy," explains retail analyst Warren Shoulberg. In the pre-e-commerce...
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...York Stock Exchange and Nasdaq listing requirements for comparative purposes. First, I went to the New York Stock Exchange Web site and saw how many round-lot holders are required to be listed, what the required public shares outstanding are, what the earnings requirements to be listed are, and what the average global market capitalization requirement to be listed is. After that I went to the Nasdaq Web site and learned what pretax earnings are required, what minimum bid price is required, how many market makers are required, how many publicly held shares are required, and what “Market Value” of the publicly held shares is required. Listing Requirements The main function of the stock market is to enable trade in the shares of public companies, which in turn reflect the performance of the companies whose shares are traded in the stock market. Stock markets are also a vital part of an economy or the economic system of a country or nation. Research has shown that most economies around the world, today, are judged by the performance of their stock markets. To trade in the stock market, a company has to be transparent about its fundamentals such as revenue, income, assets, liabilities, etc. as it allows the investing public to make fair assessments of the company’s market worth. These stock markets each, have their own listing of requirements. The purpose of this paper is to discuss the stock listing requirements of the New York Stock Exchange and NASDAQ for comparative purposes...
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...Team #2 Jing Dong Corporation Executive Summary JD.com or Jingdong, formerly 360Buy, is a Chinese electronic commerce company headquartered in Beijing. It is one of the largest B2C online retailers in China by transaction volume. Its English website, for worldwide shipping, launched on October 18, 2012. The company was founded by Liu Qiangdong (a.k.a. Richard Liu) in July 1998, and its B2C (Business to Customer) platform went online in 2004. It started as an online magneto-optical store, but soon diversified, selling electronics, mobile phones, computers, etc. Jingdong Mall changed the domain name to 360buy.com in June 2007, and to JD.com in 2013. In May of 2014 JD.com listed on the Nasdaq stock exchange, which marked the largest listing of the year on that exchange. In 2014 JD.com recorded GMV of $41.9 billion (RMB 260.2 billion) and net revenue of $18.5 billion (RMB 115 billion). Jing Dong Mall is the largest professional 3C (computer, communications, and consumer electronics.) online shopping platform in B2C market in China, and the most influential E-commerce Websites in China, which is also the most popular with consumers. Jing Dong Mall has been maintaining a high growth since founded in 2004. Its market share has been the top one for years in the online direct sales market, and the growth rate has been soaring over 300% for four consecutive years until now. Jing Dong Mall always adheres to the pure E-commerce mode operation, to reduce intermediate links, to provide...
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...NYSE VS. NASDAQ By: Lavoy Freeman Financial Management Individual Project 1 Many people may make millions or lose everything they have by buying and selling stocks on exchange markets. The two most familiar exchanges are NYSE and NASDAQ. The New York Stock Exchange is a Euro-American national security exchange that operates multiple security exchanges. It maintains a leading position in global exchange products market. In 2011, NYSE-Euronext led the market in Exchange Traded Products with more than 450 new ETN listed. The market’s impressive growth has been a success from their rests of structuring nearly 85% of their leading venue for Exchange Traded Funds, Exchange Traded Notes, Exchange Traded Vehicles, and Warrant and Certificate trading. The product offering of the marketplace gives investors access of regulated listings as well as fast and innovative tools to quickly convert assets to cash. The trade of equities, futures, options, fixed-income and exchange-traded products comes from the company’s exchanges in Europe and the United States. NYSE Liffe is a derivative business operated by NYSE-Euronext, which offers comprehensive commercial technology along with connectivity, market data products and services. (NYSE-Euronext) NASADAQ is known as an American stock exchange market, which originally stands for National Association of Securities Dealers Automated Quotations. Other than NYSE, NASDAQ is the second-largest stock exchange by market capitalization...
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...NYSE – Euronext and the NASDAQ Name: Robert E. Smith American Intercontinental University FINA 310 – Financial Management Unit 1 Individual Project September 1, 2013 Abstract This report, providing information by study of financial management, makes a comparison of the New York Stock Exchange and the National Association of Securities Dealers Automated Quotations. We will provide a perspective difference between NYSE and NASDAQ by information used in making comparison. We will further describe the Public Company Accounting Protection Act of 2002, and provide a description of the law. Memo: To: Brokers Association From: American Intercontinental University Subject: NYSE and NASDAQ RE: Orientation Date: 08/31/2013 Introduction: In orientating our newest brokers, we provide a detailed introduction to the New York Stock Exchange and the National Association of Securities Dealers Automated Quotations, Identified best by most by abbreviation as NYSE, and NASDAQ, a report detailing the similarities of these two organizations and their differences. We further provide discussion of the “Public Company Accounting and Investor Protection Act of 2002 in describing this law as it was established and reason. Overview NYSE-Euronext and NASDAQ similarities: We begin by providing an overview of both exchange operators in making comparison determining what similarities there are in these operators of financial markets. First, the NYSE is stated to be a global operator...
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...than they buy it back. Ordinarily they can make money in either rising or falling markets, by taking advantage of the difference between "bid" and "offer" prices. c. How do the market makers compete with one another? 1) Each market maker competes for customer order flow by displaying buy and sell quotations for a guaranteed number of shares. Once an order is received, the market maker immediately sells from his own inventory or seeks an offsetting order. 2) Market makers also compete against each other to post the best prices, and the prices they offer which are available, in real time, to subscribers. Q2: How does the NASDAQ quoting convention work? A2: The quoting conversion in NASDAQ is known as the common understanding of the manner that bid-ask prices of the stock which established by different market makers displayed in NASDAQ. Bid or ask quotes must be multiples of $1/8 if the bid price exceeds $10. Under this quoting convention, market makers use...
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...What is market-making? What is market-making? Who is a market-maker? Market-making is aimed at infusing liquidity in securities that are not frequently traded on stock exchanges. A market-maker is responsible for enhancing the demandsupply situation in securities such as stocks and futures & options (F&O ). To understand this concept better, it would be helpful to have an idea about the existing screenbased electronic trading system. In this system , orders placed by buyers and sellers are matched by a computer system (run by stock exchanges). This system is beneficial for actively-traded stocks, but not for lesser-traded ones. Investors usually ignore thinly-traded stocks despite good fundamentals due to fears that they might not be able to trade more frequently in them. This is where a marketmaker comes into the picture. The introduction of the market-making facility could be a possible means to infuse liquidity into such shares. In overseas markets, a market-maker is usually a broker or an institution. As a result, there is an incentive for the broker to recommend securities for which he creates a market. How does market-making work? How does the market-maker benefit? A market-maker usually is responsible for enhancing activity in a few chosen securities (shares and F&Os ). In the process, the market-maker provides both a buy and a sell quote for his chosen securities. He profits from the spread between buy and sell quotes. For example, if the market-maker gives a bid-ask...
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... Businesses are funded using private funds, borrowed funds or by issuing stock. Revenue is generated by selling products/services. This income is used to pay for wages, equipment, etc. The difference between the Revenue and Expenses is what determines if the business generated a profit or loss. To determine if a business is making a profit, financial statements are prepared using guidelines set by GAAP (Generally Accepted Accounting Principles). GAAP has guidelines which dictate industry specific rules as well as regulations that all businesses have to practice, this helps insure uniformity in data and compliance to the Laws of Accounting. In order for a company to be able to trade stock, it has to be in compliance with NASDAQ rule book. If...
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