Monthly Archives: August 2010


HP, Dell Lock Horns Over 3PAR

Submitted by
on August 30, 2010

, , , , ,

As the business world becomes ever more reliant on technology in order to function efficiently and remain competitive, there is plenty of behind the scenes wheeling and dealing going on between major players in this fast-moving sector that investors may want to keep track of. A merger bid by Dell, and the subsequent raising of the stakes by Hewlett Packard, for a company that reportedly has not managed to turn an annual profit since it became a public company three years ago, has been drawing a great deal of interest. The...

Read more »

Market Makers

Submitted by
on August 26, 2010

, , , ,

With stock exchange transactions taking place in the blink of an eye, market makers play a vital role in trading by being ready at any given moment of a trading day to buy or sell at publicly quoted prices, thereby linking sellers and buyers. These broker-dealer firms accept the risk of holding a predetermined number of shares in a chosen security, thereby facilitating instant trades in that security. Market makers trade in an environment of vigorous competition for customer order flow. As the term suggests, market makers create a market by...

Read more »

Investigation Into Flash-Crash Continues

Submitted by
on August 23, 2010

, , , , ,

While the cause of the so-called Wall Street "flash crash" on May 6 this year has not yet been confirmed by regulators charged with investigating the incident, it is likely to lead to a tougher stance on controlling who has access to high-frequency trading on markets. The investigation includes scrutinizing brokers suspected of failing to thoroughly check high-frequency traders before allowing them market access, which raises a whole host of concerns, especially in light of the fact that around 60 percent of US trading volumes take place electronically. With brokers being in the position to...

Read more »

GM Moves Ahead With IPO Plans

Submitted by
on August 19, 2010

, , , , ,

It was thirteen months ago that the U.S. government rescued General Motors from bankruptcy and landed up owning around 61 percent of the company in return for financial assistance to the tune of $50 billion. And now, despite the weak IPO market and a less than inspiring track record, GM is set to offer shares to the public once again in an effort to pay off their debt and reclaim full ownership of a company that was once part of the portfolio of many serious investors. But opinion is divided...

Read more »

US Small-Caps Take Strain in Current Economy

Submitted by
on August 16, 2010

, , , ,

As concerns regarding the pace of economic recovery in the US persist, it has become apparent that small-cap businesses have been hardest hit by investor gloom. Despite fairly upbeat data on retail sales and consumer sentiment, Friday saw the Russell 2000 index of small-capitalization stocks fall by 1.21 percent, being 7.49 points. The total decline for the week was 6.33 percent, going on record as the second consecutive week down. The Standard & Poor's Small Cap 600 fared no better, dropping 1.31 percent, being 4.35 points, and ending the week...

Read more »

US Markets Slide Amidst Global Gloom

Submitted by
on August 12, 2010

, , , ,

Stock market investing is surely not for the faint-hearted, especially in these times where every new day seems to bring a new, and often unprecedented, challenge. Following the announcement by the U.S. Federal Reserve that it would begin buying government bonds in an effort to stimulate the persistently sluggish economy, stocks and interest rates plummeted on Wednesday, reflecting the trepidation of investors with regard to economic recovery. Other factors that impacted negatively on markets included the news from the U.S. Commerce Department that, primarily due to the fall in exports, the...

Read more »

A Brief History of Trade – Part 3

Submitted by
on August 9, 2010

, , , ,

(Cont.from Part 2) Bilateral and multilateral trade began to develop in the mid 19th century with the primary focus on national advantage as being the determining factor on whether to open a country's borders to imports or not. Building on the work of economists such as David Ricardo and his father, James Mill, John Stuart Mill went on to prove that a country with the trade monopoly on international markets could make use of tariffs to manipulate the terms of trade between countries, which is likely...

Read more »

A Brief History of Trade – Part 2

Submitted by
on August 5, 2010

, , ,

(Cont.from Part 1)Between the 8th and 11th century the Varangians and Vikings used their prowess at sea to dominate trade in the Scandinavian countries, as well Western Europe and Russia. Between the 13th and 17th centuries the Hanseatic League, also referred to as the Hansa, was an alliance of trading cities which monopolized trade along the coastlines of Northern Europe, the Baltic Sea and the Northern Sea, as well as inland at various points.

Read more »