• The Finance of Star Wars

    The Star Wars has been a tremendous success, not unlike franchises such as the James Bond franchise and others. According to the video below by Professor Aswath Damodaran, what makes Star Wars different is the value of add-ons such as toys and collectibles...
  • Crowdfunding v. Traditional Funding

    Crowdfunding is a way for startups or new ventures to raise capital from many investors in small amounts. The Securities and Exchange Commission (SEC) has rules in place for crowdfunding, and here is a recent excerpt from an SEC bulletin : Crowdfunding...
  • What's Driving the Dow?

    What drives a stock market? Is it strictly gambling sentiment that tosses stock prices around, or is there something more that underlies stock prices? According to this article by Euronext : Simply put, the price of an individual stock is determined...
  • Art Vault

    The value of an investment can be determined several different ways: Comparing the investment with similar investments that have recently changed hands Determining what it would cost to replace the item Adding up the costs of all the components...
  • Money Worries for Retiring Women

    Women face some unique financial planning issues, and the infographic below discusses some of the risks faced by women as they approach retirement. From the New York Times ( 3 Mar 2017 ): Across all age groups, women have considerably less income...
  • Trading Today Vs. Yesterday

    This video gives an interesting view of how trading has shifted from the open outcry chaos to the computer based trading of today. For discussion : 1. What are the changes that have taken place since the end of pit trading? 2. What are the benefits...
  • The Wal-Mart Financial Picture

    When we determine the value of a share of stock, we need to consider the ability of the firm to generate positive cash flow. Consider Wal-Mart, for example. The stock is currently trading at a price of 86.62 per share and the trend over the last five...
  • The Tulip Bubble...Again

    Bonds have been going up, up, up. Just like tulips did back in the 1600s. From Investopedia: In 1593 tulips were brought from Turkey and introduced to the Dutch. The novelty of the new flower made it widely sought after and therefore fairly pricey...
  • Invest in What You Know

    Billionaire Mark Cuban gives some of the same investment advice we've heard in the past: invest in what you know. He invested in what he knew--technology--and came out a winner. For discussion : What does he add to Peter Lynch's legendary...
  • How The Stock Market Works...Then and Now

    This very old film from 1957 describes how the stock market worked back then. Buying shares of stock meant investing in firms that employ people and produce goods and services. Owners of shares are entitled to any dividends that the company pays and they...
  • When Choosing Stocks, Know Why to Buy

    Peter Lynch is the famous portfolio manager who has since retired from running the Magellan Fund for Fidelity Investments. Known for his popular investing book, "One Up On Wall Street," Mr. Lynch became known for the wisdom to "Invest in...
  • What is a Real Estate Investment Trust (REIT)?

    Investing in real estate can be very profitable, but it comes with it share of headaches. Along with the monthly rent payments, you get to deal with bad tenants, maintenance issues, and liabilities--and that's just for residential real estate. Commercial...
  • How to Value a Masterpiece

    Experts tell us that to figure out the value of fine art, the investor must take the following steps: Examine the physical condition of the work to find any tears or damage Authenticate by looking for the artist's signature Compare the piece...
  • Common Sense Investing

    Many financial mistakes can be avoided if we just use some common sense. From this article, some sound financial advice includes: 1. Expect some volatility in your investment account 2. Diversify diversify diversify Sounds like common sense, doesn't...
  • Investor Expectations Already Reflected in the Market: The Case of Amazon

    Modern Portfolio Theory teaches that financial markets are efficient in that all information about a company is immediately and fully reflected in the stock price. We can argue this all day. Some point to the fact that investors can consistently beat...
  • The Coming Retirement Crisis

    Today, several factors contribute to the coming crisis in retirement systems: 1. People are living longer 2. We have smaller workforces to support retirees 3. Individual savings are lower than they should be 4. Individuals are not equipped to...
  • Traditional or Behavioral Finance?

    Traditional finance says that investors are rational who weigh information properly and pay the correct value for an investment. But according to behavioral experts, not so. This video interview with legendary Daniel Kahneman describes the loss aversion...
  • How Does an Electronic Exchange Work?

    Ever wonder how an electronic exchange like Nasdaq works? If there's no shouting in a trading pit as buyers and sellers meet, how do trades actually get executed? This video explains what goes on behind the scenes.
  • History of NASDAQ PHLX Exchange

    The history of the Nasdaq PHLX exchange is described in this video below. From the day when trades were managed manually to the electronic trading today, the mechanics of exchange trading has changed.
  • What's Happening to Hedge Funds

    In this interview with Ken Griffin, CEO of Citadel, we see that second-tier hedge funds are closing due to competition. Everyone is seeking to beat the market and generate "alpha," but alpha is hard to find. For discussion : 1. How can investment...
  • What Are ETFs?

    Exchange-Traded Funds or ETFs are pools of investments like mutual finds but, unlike mutual funds, ETFs trade on an exchange. That means they can be bought or sold all day long and an investor can go long or short. This video from the Financial Times...
  • What Are Robo-Advisers?

    Will robo-advisers replace humans in the financial advisory industry? Probably not. But that doesn't mean that robo-advisers won't take a chunk of the market share away from traditional financial advisers. From Bloomberg : Banks are watching...
  • Mathematics, Cryptography, and Finance

    "That's the thing about mathematics. You never know where it's going to go." ~Jim Simons, The mathematician who cracked Wall Street
  • Best and Worst Financial Decisions

    "If 30-year-olds knew just how young they’d feel in their 50s and how much life is left to live, they’d take much better care of their finances." ~ Nancy L. Anderson, CFP According to this Forbes article , there are several...
  • What is a Pyramid Scheme?

    It it's too good to be true, it probably is. That adage is especially true in financial markets when it comes to pyramid schemes or "Ponzi" schemes. From the SEC : In the classic "pyramid" scheme, participants attempt to make...