I hate writing on the IPOs personally I don’t like them – It is important to highlight apart from Mr Amitabh Bachchan who else is playing the Just dial game becoming bit richer as he owned 62,794 shares, or 0.1% of Just Dial, since February 2011.
Though Mr. Bachchan won’t be selling his equity in the share sale, his investment could now be worth as much as 34 million rupees ($615,249). Meaning, he has made a theoretical profit of 33.5 million rupees ($603,048).
Moving out from Bollywood the latest that I know is Just Dial’s up to 9.4 billion rupee ($170 million) initial public offer was subscribed 11.6 times on closing on Wednesday, in what is the biggest IPO in the country so far this year. View full article »
YanLu, David K. Musto and Sugata ray published a paper under the heading “Alternative Marketing for Alternative Investments” . Hedge funds are currently banned from advertising. New legislation contemplates lifting this ban, thus raising the question of whether the ban is good policy. The Paper address this question by analyzing a form of indirect hedge fund advertising that already exists: advertising by institutions running both hedge funds and mutual funds, where the ads promote either the overall institution or specific mutual fund products. The Paper find that institutions increase such advertising after hedge fund flows sag, and that such advertising predicts subsequent increased inflows for hedge funds. View full article »
Guest post by : Green
The ability to understand and manipulate economic markets for financial gain is a skill that has been watered down over
the years. It seems these days that almost everyone thinks they are an expert in stock and shares, Forex or commodities. The big crash of 2008 and the ensuing volatility in a number of key markets have been refreshing in so much as it really separated the masters from the mice in market trading.
Those who have managed to continue to make money during these hard times are the quintessential trend spotters. However in this case they are not so much spotting an individual trend, more the changing methods of how to invest in the stock market. View full article »
Yesterday CME shared a paper on the famous OTC derivatives and their treatment under Extraterritoriality. Due to the role of unregulated over-the-counter (OTC) financial derivatives in the 2008 financial crisis which began in the U.S. but whose influence was felt globally, the G-20 agreed in its Pittsburgh meeting in 2009 that “all standardised OTC derivative contracts should be traded on exchanges or electronic trading platforms, where appropriate, and cleared through central counterparties by end-2012, at the latest. OTC derivative contracts should be reported to trade repositories. Non-centrally cleared contracts should be subject to higher capital requirements.”
The members of the G-20, in varying degrees and at different speeds, have embarked in their own jurisdictions to reform the OTC derivatives market. Given the interconnected nature of these markets, international cooperation has very much been part of crafting derivatives financial regulation.
View full article »
India produces the maximum no. of MBA’s in the world, graduate students finds it an attractive opportunity and wants to join the bandwagon which has been sold through the expensive coaching’s like TIME, Career launcher, PT, PF and so on . But paying huge amount of coaching fees doesn’t guarantee your place in the IIMs or in Tier 1 B schools. Every year the CAT, XAT, SNAP, MAT takers are raising but vice-versa the good B schools intake capacity is not proportional to the candidates.
This led a good opportunity for many of the (Master-Mind) punters to have their own colleges. Few of colleges not AICTE approved have proved themselves by quoting the best placements in the country with very high proficient level of standards. But there are colleges which are like a charlatan fooling the students (even the AICTE approved ones) by charging a huge amount of fees. This culture is well versed in the metros. View full article »
John C. Bogle the renowned name in the mutual funds shared some thoughts long back saying Whatever the form of the EMH, I know of no serious academic, professional money manager, trained security analyst, or intelligent individual investor who would disagree with the thrust of EMH: The stock market itself is a demanding taskmaster. It sets a high hurdle that few investors can leap.
University of Chicago Professor Eugene F. Fama had performed enough analysis of the ever-increasing volume of stock price data to validate this “random walk” hypothesis, rechristened as the efficient market hypothesis (EMH). Today, the intellectual arguments against the EMH religion are few. The church, however, has three different dogmas. Princeton Professor Burton Malkiel describes them: the weak form (stock price changes over time are statistically independent); the semi-strong form (prices quickly reflect new value-changing information); and the strong form (professional managers are unable to accurately forecast the future prices of individual stocks). View full article »
Active investment still has some active defenders, And digging into the reasons for active funds’ persistent problems, it is easy to see why. Despite the claims of the Efficient Market Hypothesis (EMH) that it is impossible to beat the market other than by luck, it appears that an impressive number of managers do achieve the feat.
The problem is that they do not manage to beat the index by enough to be able to pay themselves and still pass on a decent performance to their clients. In other words, to quote Jack Bogle, the founder of Vanguard and the spiritual father of index investing, the case for passive investing rests on the CMH (Cost Matters Hypothesis), not the EMH. View full article »
The Stock Twits did a great job on the never ending Quantitative Easing . As T.S. Eliot said The end is where we start from.
Below are nine points believe are the key going forward:
- The Fed is not uncomfortable yet with the level of market speculation, complacency and asset price reflation – but it is totally and completely aware of what we’re up to.
- The castigating rhetoric of hedge fund managers emanating from both Sohn and SALT, whose tongues loll out of their mouths from their break-neck pursuit of the runaway benchmark indexes, has not been lost on the FOMC. Voting members are not only aware of the effects their policies are having, they are aware of the perceptions surrounding them as well. View full article »