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• London Stock Exchange – Moving Ahead With Technology - Editor, 19 June 2008 - No Comments yet

The London Stock Exchange (LSE), situated in Paternoster Square in the city of London, is not only the largest exchange in Europe in terms of listed companies by market value, but is also one of the largest stock exchanges in the world. Although the LSE is also one of the oldest stock exchanges in the world, having been established in 1801, it certainly moves with the times when it comes to the latest technology and unwavering dedication to the interests of its clients.

• Russell 3000 Index – Setting Investment Benchmarks - Editor, 18 June 2008 - No Comments yet

The preliminary annual Russell 3000 Index, released late Friday 13 June 2008, indicates that the market value of stocks incorporated in the renowned Russell Investments Index has dropped by approximately $2 trillion during the past year. This is seen as a reflection of the overall decline in the market and the slow-moving U.S. economy. The reconstituted Russell 3000 index reflects an additional 278 new companies, while 176 companies will be removed from the index due to a significant decline in their market value.

• A Look at Market Capitalization - Editor, 17 June 2008 - No Comments yet

A public company’s market capitalization (also referred to as market cap) is the total market value of its outstanding shares i.e. all issued shares in the hands of investors. This measurement of corporate or economic size of a company is calculated by multiplying the number of outstanding shares by the price of one share, thereby providing a total value for the company’s shares, and therefore for the company as a whole. Instead of using sales or total asset figures to determine the size of a company, investors make use of market capitalization figures.

• Random Walk Hypothesis - Editor, 16 June 2008 - No Comments yet

The financial theory known as the "random walk hypothesis" proposes that stock market prices develop according to a random walk and, therefore, stock market prices are completely unpredictable. This hypothesis is widely accepted by economists, investors and other financial behaviorists, who continue to believe that stock prices are random making it impossible to consistently outperform market averages.

• Uncertainty Reigns on Wall Street - Editor, 13 June 2008 - No Comments yet

The market suffered yet another blow on Wednesday 11 June, when the Dow at the New York Stock Exchange fell by more than 200 points. Ongoing concerns over rising oil prices, along with fears regarding rising inflation and the possibility of interest rates being raised, as well as almost stagnant economic growth, are seen as the main contributing factors behind the market’s current volatility.

• Traumatic Tuesday at the Shanghai Stock Market - Editor, 12 June 2008 - No Comments yet

In an effort to reduce lending and thereby curb inflation, China has increased the amount of money to be kept in reserve by banks, which in turn results in less money being available for loans. It is generally agreed by analysts that these credit-tightening measures were the primary reason for China’s main stock index plummeting by 7.7% on Tuesday 10 June, going on record as the biggest decline in more than a year. This was the second straight day the Asian markets experienced a large decline, exacerbating concerns over rising inflation and slower economic growth.

• The Principle of Owner Earnings when Investing - Editor, 11 June 2008 - No Comments yet

Good investors are constantly on the look out for metrics that can assist them in their assessment of the true worth of a company that they may be considering investing in. With hindsight being the only exact science, investing often comes down to making an educated guess. There are, however, a number of ways to minimize the guesswork when making investment decisions. One of these is making use of the principle of “owner earnings”.

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