Posts Tagged ‘ financial ’


Optimism High For 2011 Market Activity

Submitted by
on January 3, 2011

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US stock market investors are reportedly looking to the New Year with a measure of enthusiasm and optimism as economic recovery strategies, such as the much-touted QE2, are poised to be executed. Looking back at this time a year ago there were also signs encouraging optimism for economic recovery at that time, but these were dealt a blow by debt problems and economic turmoil in European countries, as well as less than promising results of stimulus spending, sparking fears for a 'double dip' in the economy by...

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Moral Hazard – Part 1

Submitted by
on December 27, 2010

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Renowned in financial circles for his work on incentives relating to asymmetric information, Professor of Economics at the Massachusetts Institute of Technology (MIT) Bengt Robert Holmström defines the term 'moral hazard' in the 1979 Bell Journal of Economics as follows: "It has long been recognized that a problem of moral hazard may arise when individuals engage in risk sharing under conditions such that their privately taken actions affect the probability distribution of the outcome." Economist Professor Paul Krugman put it in a nutshell by describing moral hazard as being "any situation in which...

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Are Investments in Innovations Worthwhile?

Submitted by
on June 25, 2008

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The ultimate goal of innovation is to implement positive change, and innovation is an important factor for the increase of wealth in an economy. However, often the financial benefits of innovation are only realized in the long term. This can be a problem for a management team that is focused on appeasing investors above all else and are, therefore, driven by quarterly results. They may be reluctant to invest in innovation, no matter how promising, for fear of negatively impacting on short-term financial performance.

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Best Stocks to Sell Short (Part 1)

Submitted by
on November 26, 2007

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The secretive world of private equity loves to sell stock short so much that no resources are spared to win blind eyes if not outright favors from political heavyweights! India has ambitions of its west coast metropolis emerging as the financial capital of the world, but such dreams are reality already when it comes to volatility in the local stock market!

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Countrywide Proof of Stocks with Durable Values (Part 2)

Submitted by
on November 2, 2007

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How Countrywide Protects Value of its Stocks

Incontrovertible integrity, customer focus, and prudent financial policies, are the three pillars on which Countrywide Financial has built a nearly impregnable competitive position. The company balances hard-nosed management of the enterprise with a generous heart for the social environment in which it functions. The management sets not just financial performance targets, but also declares priorities for doing business with less privileged sections of society. Perhaps this is also why the company enjoys such unprecedented support from all its shareholders. It is certainly a reassuring factor for investors who...

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