By Bernice Napach | Daily Ticker – Thu, Sep 13, 2012 7:11 AM EDT Hours from now the Fed will issue its long awaited decision on monetary policy. The big question for the financial markets: Will Fed officials decide in favor of a third round of quantitative easing, buying long-term government securities in order to
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A Digression: Markov Chains Markov chains are simple, easy-to-learn mathematical models. It is used to predict non-evolving systems over time and is commonly used in the business world. As useful as it seems, Markov chains cannot be learned without a basic knowledge of math matrices. Thus, this article and the next one will be
Return to Types of corporations home. Type Suited for which typeof investor Expansion opportunities Competition Does what with profits Relates to Watch out for Defensive Conservative, who wants to be proactive when recession appears imminent Average Average Usually pays out enough for substantial dividends with some kept to grow business The best may also
If there’s a Wild West in the investing world, it would have to be “penny stocks”. These corporations get their name because their share prices are usually in the pennies (ie, less than a dollar) and are often less than one cent! For example, a penny stock may have a price of $.0033, representing a
Imagine if you were made an offer you couldn’t refuse. The offer is as follows: You will be given $250,000 to invest. You must invest it in a single corporation and leave it invested in that corporation for 30 years. At that point, if the value of the investment has risen to $1 million or
Dexter and his friends are walking down the street. A group ahead sees something lying in the street. It’s a genuine Frisbee brand flying disc. Dexter watches as they take a quick look and walk past. When Dexter comes to it, he sees it’s dirty but otherwise in good shape. Yet, he walks past as well.
The economy alternates between periods or cycles of growth and contraction (aka recession). When the economy enters a recession. economic activity slows. Most corporations experience a drop in sales and profits, and consequently stock prices. However, certain types of corporations actually do better when an economy does poorly. These include dollar stores, pawn shops, payday
Have a moment for a story? Stan is a man with a problem. Stan is about to get up on Monday morning. In front of his apartment sits his car, an ordinary vehicle containing only a cup of gas. Stan lives just around the corner from a major intersection that features a Starbucks on one corner