Stock Market Savvy - New York Stock Exchange

The New York Stock Exchange, with the assistance of Lifetime Learning Systems, a division of Weekly Reader, is proud to present this free educational program, Stock Market Savvy: Investing for Your Future. Specifically designed for middle school and high school students, this program includes eight reproducible activities that can be customized to the needs of your class. The goal is to introduce your students to the financial world of long-term savings and investment in stocks. Students will see that long-term savings through investment in the securities market is integral to the economy and their own personal lives. This program will introduce students to the high-tech, exciting nature of the NYSE and the skilled market professionals that use state-of-the-art

technology on the Trading Floor. They will also understand that the NYSE maintains high standards of conduct and integrity in the hybrid market to ensure fair trading in securities for all investors. Stock Market Savvy: Investing for Your Future also helps students discover how to make informed investment decisions and understand why long-term savings through securities investment is important as they prepare for their future goals and dreams. Although the material is copyrighted, it can be reproduced for teaching purposes. Please complete and return the enclosed Educator Reply Card to receive future free educational programs and the enclosed survey to provide feedback on this program. Stock Market Savvy Investing for Your Future Information for Educators from the New York Stock Exchange Program Objectives Provide students with an understanding of the world of securities investment and its importance to their personal lives and private enterprise. Introduce students to the high-tech, exciting nature of the NYSE and the skilled market professionals on the Trading Floor and in the equities marketplace. Teach students about the high standards of con- duct and integrity at the NYSE that ensures fair trading for all investors. Explore how supply and demand affects stock prices in the securities marketplace. Encourage teachers, students, and their families to explore the opportunities for long-term savings growth as active and informed investors. Target Audience This program is designed for middle school and high school students in social studies, business, economics, consumer skills, or other relevant classes. It is helpful when teaching financial responsibility or for use in after-school stock or business clubs. Program Components This eight-page teacher’s guide, which contains curricula objectives, background information, instructions for using the student activity masters, answers to the student exercises, and suggested extension activities Eight reproducible student activity masters Two different full-color wall posters for class- room display A teacher survey How to Use the Posters Please display both posters in your classroom. Poster #1 (New York Stock Exchange): This poster will familiarize students with the New York Stock Exchange and help them appreciate the role NYSE- listed companies play in their daily lives and the economy. Owning stock in a company means owning a piece of that business. Investments grow over time and this means young investors can create a great opportunity for future earnings. Poster #2 (How To Read Stock Tables): One way to get a stock quote...

Website: www.nyse.com | Filesize: 539kb
No of Page(s): 6
Download Stock Market Savvy - New York Stock Exchange.pdf

The Presidential Puzzle: Political Cycles and the Stock Market

ThePresidentialPuzzle:PoliticalCyclesandthe StockMarket PEDRO SANTA-CLARA and ROSSEN VALKANOV n ABSTRACT TheexcessreturninthestockmarketishigherunderDemocraticthanRepub- lican presidencies: 9 percent for the value-weighted and 16 percent for the equal-weightedportfolio.The di¡erence comes from higher real stock returns and lower real interest rates, is statistically signi¢cant, and is robust in sub- samples.The di¡erencein returns is notexplainedbybusiness-cyclevariables related to expected returns, and is not concentrated around election dates. Thereis no di¡erenceintheriskiness of the stock market acrosspresidencies that could justify a risk premium. The di¡erence in returns through the politicalcycle is therefore a puzzle. INTHERUN-UPTOALLPRESIDENTIALELECTIONS,thepopularpressisawashwithreports aboutwhetherRepublicans orDemocrats arebetter for the stock market. Unfor- tunately, the popular interest has not been matched by academic research.This paper ¢lls that gap by conducting a careful empirical analysis of the relation betweenpresidentialelections and the

stock market. Using data since 1927, we ¢nd that the average excess return of the value- weighted CRSP index over the three-monthTreasury bill rate has been about 2 percentunder Republican and11percent underDemocraticpresidentsFa strik- ing di¡erence of 9 percent per year! This di¡erence is economicallyand statisti- callysigni¢cant. Adecompositionofexcess returns reveals that the di¡erence is duetorealmarketreturnsbeinghigherunderDemocratsbymorethan5percent, as well as to real interest rates being almost 4 percent lower under Democrats. Theresults areeven moreimpressive for the equal-weightedportfolio, wherethe di¡erencein excess returnsbetweenRepublicans and Democrats reaches16per- cent. Moreover, we observe an absolute monotonicity in the di¡erence between size-decile portfolios under the twopolitical regimes: From 7 percent for the lar- gest ¢rms to about 22 percent for the smallest ¢rms. THE JOURNAL OF FINANCE C15 VOL. LVIII, NO. 5 C15 OCTOBER 2003 n Santa-Clara and Valkanov are from The Anderson School, University of California, Los Angeles. We thank Antonio Bernardo, Michael Brandt, Michael Brennan, Bhagwan Chowdhry, Brad Cornell, Eugene Fama, Shingo Goto, Mark Grinblatt, Harrison Hong, Jun Liu, Francis Longsta¡, Monika Piazzesi, Richard Roll, and Jose¤ Tavares for useful comments. We are especially grateful to Maria Gonzalez, Richard Green (the editor), and an anonymous referee for many suggestions that have greatly improved this paper.We thank Kenneth French and G.William Schwert for providing ¢nancial data. All remaining errors are our own. 1841 When faced with a result such as this, we have to ask ourselves whether the ¢ndings are spurious.We conduct several robustness checks, including studying di¡erent subsamples, correcting the statistical inference for short-sample pro- blems,andexaminingtheimpactofoutliers.In subsamples,therelationbetween excess returns and the politicalvariables remains signi¢cant. However, thelevel of signi¢cance drops from 5 to 10 percent, largelybecause the power of our tests decreases substantially with the number ofelections.We run abootstrap experi- ment to correct small-sample inference problems.The corrected statistics corro- borate the signi¢cance of the relation between political cycles and the equity premium. Finally, we use quantile regressions to establish that outliers do not drive our results. Of course, given the limitations of the data, we can never be absolutelysure that the impact of political cycles on the stock market is not just a statistical £uke. We examinewhether the di¡erence in average returns is due to a di¡erence in expected returns oradi¡erenceinunexpected returns. Inthe ¢rst case, the di¡er- ence in realized returns would be due to a‘‘Democratic risk premium.’’ 1 In the secondcase,the di¡erenceinreturnswouldbe drivenbysurprisesintheeconom- ic policies of the party in the presidency. In other words, a di¡erence in...

Website: docentes.fe.unl.pt | Filesize: 299kb
No of Page(s): 32
Download The Presidential Puzzle: Political Cycles and the Stock Market.pdf

A Confidence Interval Triggering Method for Stock Trading

A Confidence Interval Triggering Method for Stock Trading Via Feedback Control S. Iwarere and B. Ross Barmish Abstract— This paper builds upon the robust control paradigm for stock trading established in [1]. To this end, the contribution of the current work is an algorithm for triggering a trade. Whereas previous work considered the management of a trade, this paper concentrates on entry into the trade. That is, based on historical prices, we generate, three possible signals: long, short or no trade. These signals are derived using an Ito process model based on geometric Brownian motion. The parameters of this model, the Ito process drift and the volatility , are estimated and adaptively updated as each new piece of price data

arrives. The confidence interval for determines when a trade is triggered. If a trade is triggered, then the amount invested in stock is obtained using the saturation-reset linear feedback controller described in [1]. The performance of this trading method is studied in both idealized markets and real- world markets. I. INTRODUCTION This paper is part of a relatively new branch of technical analysis which involves the application of control theoretic concepts to stock and option trading. The key idea in this literature is to formulate the trading law as a feedback control on the price sequence. Subsequently, buy and sell signals are generated over time and the trader’s holdings correspondingly change; e.g., see [1] for the author’s approach and the earlier work in [2]-[5]. In the control theory literature to date, the “triggering mechanism” for entering or exiting a trade has not been emphasized. This issue is the main focal point of this paper. We begin by first considering the triggering issue in a so-called idealized market. To this end, an underlying Ito process with unknown drift parameter and volatility parameter is assumed for the discrete-time stock price process S(k). Then, given n price measurements, we proceed to create an estimate ^ of and use the corresponding confidence interval to decide whether to enter a trade or “walk away.” Then, if the lower confidence level L satisfies L 0, a long trade is triggered. On the other hand, if the upper confidence level U satisfies U 0, this dictates going short. Finally, for the case when L< 0
Website: www.engr.wisc.edu | Filesize: 269kb
No of Page(s): 8
Download A Confidence Interval Triggering Method for Stock Trading Via ....pdf

Credit Card Migration Request - Commonwealth Bank

Credit Card Migration Request To change your existing Commonwealth Bank credit card account(s) to a new Commonwealth Bank credit card, complete and return this form to your nearest branch, fax it to us on (02) 9841 6300 or mail it to Credit Cards, Reply Paid 72551, PARRAMATTA NSW 2124 . Important information • Your existing account number will change if you are moving from Visa to MasterCard, or from a Personal credit card to Personal Liability Business credit card, or moving between Standard, Gold and Platinum products. Changes will be confirmed in writing to you. • You will need to cancel any direct debits if your account number changes and move them to your new account. You will need to

arrange this with your merchants directly. • If you do not select a card type to open, the Bank will assume you are wanting to migrate your account to an Awards MasterCard. • If you use Autopay currently, it will be automatically transferred to the new account. • Any outstanding balance and transactions not yet processed at the time of transfer may be processed at the new interest rate. Section 1 – Primary cardholder Title Mr Mrs Miss Ms Other Surname Given name(s) Current address State Postcode Business phone number Home phone number Section 2 – Current account to migrate MasterCard or Visa card account number Section 3 – New MasterCard account to open (tick ( ✔ ) one box only) Transfer the balance and limit of account in Section 2 above to: Personal Liability Awards Credit Cards Low Fee Credit Cards Low Rate Credit Cards Business Credit Cards Diamond Awards Low Fee Gold Low Rate Gold Business Platinum Awards (min. $18,000 credit limit) (min. $2,500 credit limit) (min. $2,500 credit limit) (min. $6,000 credit limit) Platinum Awards Low Fee Low Rate Business Gold Awards (min. $6,000 credit limit) Student (min. $2,500 credit limit) Gold Awards (full time at Uni or TAFE) Business Awards (min. $2,500 credit limit) Business Low Rate Awards Business Interest Free Days Section 3a – Business details If you have selected a Business Card above you must complete this section. Please note: Primary Cardholder must be the Business Owner, Director or Partner. Applicant must be an Australian Citizen or an Australian Permanent Resident. If ABN belongs to a Trust, a copy of the Trust Deed must be provided. Full registered business name ABN Business name to appear on card (optional – maximum 21 characters) 003-041 090511 (CBA1942) Page 1 of 2 Section 4 – Declaration Migrating to a Consumer Credit Card I acknowledge that my existing Credit Card Conditions of Use will continue to apply to my new credit card account. The Bank may decline my request, or transfer if my existing account is over limit or in arrears. I agree that if I am changing to a credit card account with Commonwealth Awards, both I and any additional cardholder on my account will be issued with two credit cards (a Commonwealth Bank MasterCard and a Commonwealth Bank American Express Card) all on the same credit card account. Migrating to a Personal Liability Business Credit Card...

Website: www.commbank.com.au | Filesize: -
No of Page(s): 2
Download Credit Card Migration Request - Commonwealth Bank.pdf

Financial Market Dislocations - University of Miami School of Business

Financial Market Dislocations Paolo Pasquariello 1 January 15, 2013 1 c° 2013 Paolo Pasquariello, Department of Finance, Ross School of Business, University of Michi- gan, ppasquar@umich.edu. I am grateful to CIBER and the Q Group for financial support, and to Deniz Anginer, Kenneth French, Tyler Muir, Lubos Pastor, Jeremy Piger, and Adrien Verdelhan for kindly providing data. I benefited from the comments of Rui Albuquerque, Torben Andersen, Andrew Ang, Deniz Anginer, Ravi Bansal, HankBessembinder, Robert Dittmar, BernardDumas, WayneFerson, John Griffin, Mark Huson, Ming Huang, Charles Jones, Andrew Karolyi, Ralph Koijen, Francis Longstaff, Darius Miller, Lorenzo Naranjo, Lubos Pastor, Lasse Pedersen, Joel Peress, Amiyatosh Purnanandam, Uday Rajan, Angelo Ranaldo, Gideon Saar, Ken Singleton, Elvira Sojli, Jules van Binsbergen, Clara Vega, Adrien

Verdelhan, Frank Warnock, Ivo Welch, Jeff Wurgler, Xing Zhou, and seminar participants at the 2011 NBER SI Asset Pricing meetings, 2011 FRA conference, 2012 SFS Finance Cavalcade, 2013 AFA meetings, University of Michigan, Michigan State University, Cornell University, Panagora, Univer- sity of Utah, Erasmus University, Tinbergen Institute, World Bank, ESSEC, INSEAD, and University of Minnesota. Any remaining errors are my own. Abstract Dislocations occur when financial markets, operating under stressful conditions, experience large, widespread asset mispricings. This study documents systematic dislocations in world capital marketsandtheimportanceoftheirfluctuations forexpectedasset returns. Ournovel, model-free measure of these dislocations is a monthly average of six hundred abnormal absolute violations of three textbook arbitrage parities in stock, foreign exchange, and money markets. We find that investors demand economically and statistically significant risk premiums to hold financial assets performing poorly during market dislocations. JEL classification: G01; G12 Keywords: Asset Pricing; Dislocations; Expected Returns; Financial Crisis; Arbitrage; Law of One Price 1 Introduction Financial market dislocations are circumstances in which financial markets, operating under stressful conditions, cease to price assets correctly on an absolute and relative basis. The goal of this empirical study is to document the aggregate, time-varying extent of dislocations in world capital markets and to ascertain whether their fluctuations affect expected asset returns. The investigation of financial market dislocations is of pressing interest. When “massive” and “persistent,” these dislocations pose “a major puzzle to classical asset pricing theory” (Fleck- enstein et al., 2012). The turmoil in both U.S. and world capital markets in proximity of the 2008 financial crisis is commonly referred to as a major “dislocation” (e.g., Matvos and Seru, 2011). Policy makers have recently begun to treat such dislocations as an important, yet not fully-understood source of financial fragility and economic instability when considering macro- prudential regulation (Hubrich and Tetlow, 2011; Kashyap et al., 2011). Lastly, the recurrence of severe financial market dislocations over the last three decades (e.g., Mexico in 1994-1995; East Asia in 1997; LTCM and Russia in 1998; Argentina in 2001-2002) has prompted institutional investors to revisit their decision-making and risk-management practices. Financial market dislocations are elusive to define, and difficult to measure. The assessment of absolute mispricings is subject to considerable debate and significant conceptual and empirical challenges (O’Hara, 2008). The assessment of relative mispricings stemming from arbitrage par- ity violations is less controversial. According to the law of one price – a foundation of modern finance – arbitrage activity...

Website: www.bus.miami.edu | Filesize: 512kb
No of Page(s): 55
Download Financial Market Dislocations - University of Miami School of Business.pdf

30 Year Stock Market Performance - Total Value Annuity

Dec 1982 Dec 1984 Dec 1987 Dec 1990 Dec 1993 Dec 1996 Dec 1999 Dec 2002 Dec 2005 Dec 2008 Dec 2012 5640 443530 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 Age of Retirement Saver October 9, 2002 A 47% decline in the S&P from the peak of the dot-com bubble March 9, 2009 A 57% decline in the S&P from the peak of the housing bubble October 9, 2007 Peak value of 1565.15 Jan. 14, 2000 Peak value of 1465.15 October 19, 1987 Black Monday S&P decreased 20.4% 1982 - 2000 Secular Bull Market 1995 - 1997 Beginning of the dot-com bubble 48 6052 Stock Market Performance Over Last

30 Years S&P Value S&P ® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones ® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed for use by S&P Dow Jones Indices LLC. S&P ® and S&P 500 ® are trademarks of S&P and have been sublicensed for certain purposes by Security Benefi t Life Insurance Company. The S&P 500 ® index is a product of S&P Dow Jones Indices LLC and/or its affi liates and has been licensed for use by Security Benefi t. Products and services offered by Security Benefi t’s affi liated companies are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affi liates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affi liates make any representation regarding the advisability of purchasing such product or services. 99-00461-85 2013/02/05 Values obtained through Yahoo Finance - Week of 01/14/2013. Continued  ® ® In all states except New York, annuities are issued by Security Benefi t Life Insurance Company (SBL). In New York, annuities are issued by First Security Benefi t Life Insurance and Annuity Company of New York (FSBL), Rye Brook, NY. SBL is not authorized in the state of New York and does not transact the business of insurance in the state of New York. Services offered through Security Distributors, Inc. (SDI). SDI is a subsidiary of SBL, and SBL and FSBL are wholly owned by Security Benefi t Corporation (“Security Benefi t”). Security Benefi t is indirectly controlled by Guggenheim Partners, LLC. 99-00461-85 2013/02/05...

Website: www.sbelitepartners.com | Filesize: 179kb
No of Page(s): 2
Download 30 Year Stock Market Performance - Total Value Annuity.pdf

Institutional stock trading on loan market information

INSTITUTIONAL STOCK TRADING ON LOAN MARKET INFORMATION * Victoria Ivashina Harvard Business School Zheng Sun University of California, Irvine This draft: January, 2010 One of the most important developments in the corporate loan market over the past decade has been the growing participation of institutional investors. As lenders, institutional investors routinely receive private information about borrowers. However, most of these investors also trade in public securities. This leads to a controversial question: Do institutional investors use private information acquired in the loan market to trade in public securities? This paper examines the stock trading of institutional investors whose portfolios also hold loans. Using SEC filings of loan amendments, we identify institutional investors with access to private information disclosed during loan

amendments. We then look at abnormal returns on subsequent stock trades. We find that institutional participants in loan renegotiations subsequently trade in the stock of the same company and outperform trades by other managers and trades in other stocks by approximately 5.4% in annualized terms. Key words: Institutional investors, Syndicated loans, Insider trading JEL classification: G11, G14, G21, G22, G23 * Corresponding author: Harvard Business School, Baker Library 233, Boston, MA 02163. Phone: (617) 495-8018. E-mail: vivashina@hbs.edu . We thank Malcolm Baker, Josh Coval, Mihir Desai, Rob Engle, Ben Esty, Robin Greenwood, Joel Hasbrouck, Andre Perold, David Scharfstein, Erik Stafford, Phil Strahan, Guhan Subramanian, Peter Tufano, Robert Whitelaw, and seminar audiences at the 2008 American Finance Association Annual Meeting, the 2007 NBER Summer Institute, the 2007 European Finance Association Annual Meeting, the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Federal Reserve Bank of New York, Princeton University, Arizona State University and TCU for helpful comments. We are very grateful to Bill Simpson and Xiang Ao at the HBS Research Computing Services for helping us with statistical derivations, and to Magali Fassioto for excellent research assistance. 1. Introduction Loan syndication and the multiple financial innovations that have accompanied it have transformed the corporate lending market. Today, a large fraction of corporate loans are syndicated; in 2006 new corporate issuance of syndicated loans was over twice as large as total bond issuance and over five times larger than equity issuance. A syndicated loan is originated and monitored by one bank, yet it is funded by a group (or a syndicate) of lenders. An important fact about loan syndication is that most participants in lending syndicates are not banks but institutional investors, including collateralized loan 1 obligations, hedge funds, mutual funds, pension funds and insurance companies. It is estimated that in 2006 over 70% of high-yield loans in the United States, including leveraged buyouts and mergers and acquisitions financing, were held by institutional investors, up from under 30% in 1995. Overall, in 2006, there were 254 different non- bank investor groups participating in the syndicated loan market, amounting to 720 2 different investment vehicles. As a percentage of participants in the syndicated loan market, institutional managers have steadily increased from approximately 25% in the mid-1990s over 70% by the end of 2006. The availability of institutional funds allows banks to reduce their risk through diversification, improves loan-market liquidity and ultimately...

Website: merage.uci.edu | Filesize: 218kb
No of Page(s): 55
Download institutional stock trading on loan market information - The Paul ....pdf