The Bank of England has just released a new paper titled “High-frequency trading behaviour and its impact on market quality: Evidence from the UK equity market” . The paper is similar to the recent Kirilenko study in that it separates ‘aggressive” and “passive” high frequency traders and it uses data which identifies the counterparties of each transaction.
Before we get into some of the specifics of the paper, it’s important to note how the Bank of England defines HFT:
“The term “HFT” is generally used View full article »
The global economy gloom is still not over but 2012 was more promising that the last couple of years after the major Subprime Crisis and the ongoing Euro Debt crisis. Here are some of the trades winning bets to be made on Wall Street in 2012. And finding some of them was relatively simple: Just buy the thing that caused—or nearly caused—a major financial meltdown a couple of years back.
1. Subprime mortgage bonds : May sound awkward View full article »
A week ago finished reading The Snowball “Warren Buffet and the Business of life” by Alice Schroeder. It’s full of surprises, such as how Buffett had three leading ladies for two decades, and how his 1960s home was an accidental outpost of the counterculture.
But I’m more interested in how Buffett made his money. And while there’s few new facts about Buffett’s deals in The Snowball, the biographical format does put them into context. You get to see what makes him tick.
Here are seven interesting things I learned about Warren Buffett from The Snowball, View full article »
I have done a series of posts on this topic and a paper by Pitchard “Initial Public Offerings (IPOs) must simply be abolished” and some fine prints reading of IPO’s “WHAT TO READ IN AN OFFER DOCUMENT ?? “.
In the recent days about how evil banks and corporations are for allowing their IPOs to be “overpriced”. I believe this is a misinterpretation. The whole point of an IPO is for it to be “overpriced”.
This argument about IPO pricing appears like another case of people View full article »
Time and again I did post on the IPO of Facebook and then disclosed the paper on banning of the IPOs. Let’s disclose some conflicts of interest. The Facebook IPO and the underwriters’ price stabilizing activity on its first trading day, Friday May 18. And Fed researcher noted, that there was a whole lot of buying at the IPO price of $38, which was probably largely due to the underwriters and which kept the stock above $38 going into the weekend before View full article »
It is a provocative paper arguing that Initial Public Offerings (IPOs) must simply be abolished by Adam Pritchard (“Revisiting ‘Truth in securities revisited’: Abolishing IPOs and harnessing markets in the public good”). He suggests that “companies bec[o]me public, with required periodic disclosures to a secondary market, before they [a]re allowed to make public offerings”.
“No one believes that IPOs reflect an efficient capital market. In fact the evidence is View full article »
Before I start the discussion, I would like to open the discussion How many people do you know that are as successful as they want to not take responsibility for their actions?
They always have excuses to succeed not fail.You know if something is not working do not go down with the sinking ship. Have a reason for everything you do so you can learn from it. Trading is hard because what is written in stone one day is thrown out the next.
Here is just one of the conversation with trader, which you never want youto be, sharing as its interesting too, here is how it went.
Alternative investments are not a new concept but seems to be gaining momentum, I did a story in March 2012 under the heading ART TREATED AS AN ALTERNATIVE INVESTMENT .Would like to evolve on those terms, Lets face it : The financial crisis seemed to mark a turning point in the spectacular growth of alternative investments, such as managed investments in hedge funds, private equity, real estate, commodities, and infrastructure. Poor performance and liquidity problems led to massive redemptions in several View full article »
On an average the Indian market has given a 19% return in the last financial year that is the 3rd highest return after Egypt & Brazil who gave the better returns. The underlying is how many made the money because the markets where volatile , ruthless and driven by crisis over the year.
Wondering whether the 20 golden rules holds true for today’s market scenario :
- Your investor’s edge is not something you get from Dalal/Wall Street experts. It’s something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand.
- Over the past 3 decades, the stock market has come to be View full article »