• ICO or IPO: What's The Difference?

    Start-ups may be able to raise new money using an ICO instead of an IPO. This new fund-raising method has its critics, including the SEC. From The Hill ( 28 Aug 2017 ) The Securities and Exchange Commission (SEC) on Monday issued a warning about investing...
  • How FINRA Spots Market Manipulation

    Market manipulation can happen in two ways: 1. Information-based manipulation 2. Transaction-based manipulation In information-based manipulation, the unethical behavior involves spreading false, exaggerated, or misleading information about a...
  • Functions of the Federal Reserve

    In the complex financial markets in which we operate, the central bank of the U.S., the Federal Reserve system, faces the great challenge of promoting the stability of the U.S. financial system. This video explains the primary responsibilities of the...
  • Beware of Financial Fraud

    This video explains how anyone can be swindled. Fraud victims are not exclusively elderly widows--rather, they include doctors, lawyers, educated, and uneducated alike. For discussion: 1. What are some common financial frauds? 2. What are some warning...
  • The State of Cybersecurity

    From a recent Forbes article : Is the cybersecurity industry keeping up with cybercrime? Absolutely not. Cyberwarfare is at an all-time high, and cybersecurity is just unable—unequipped—to keep up. We’re seeing a convergence of three...
  • The Puzzle that is Inflation

    The Fed has a problem with inflation--that is a low inflation. This video explains the puzzle that is inflation. For discussion : 1. What is the Fed's goal with respect to inflation? 2. Why does inflation matter? 3. What factors might be causing...
  • What Does the Fed Do?

    The Federal Reserve follows two key goals, known as the "dual mandate." This dual mandate is explained by the Chicago Fed like this: Our two goals of price stability and maximum sustainable employment are known collectively as the "dual...
  • Fixing Wall Street's Image

    In this interview with Morgan Stanley CEO, James Gorman, he explains why he believes that Wall Street continues to suffer from an image problem. In particular, Wall Street's involvement in financial crises of the recent past have soured the public...
  • What Happens When Banks Fail

    Over 4,000 banks have failed in the U.S. since 1934, with many recorded during the Great Depression, many more during the Savings & Loan crisis, and most recently during the credit crisis. The number of bank failures has slowed down significantly...
  • The Sound of Algorithmic Trading

    Three quarters of trades are coming from machines rather than humans. The average holding period for a stock on Wall Street is a mere 22 seconds. This TedX talk explains algorithmic trading and its importance to Wall Street. For discussion: 1. What...
  • The Story of Silver Thursday

    The Hunt brothers started trading silver in 1973, and by 1979 had amassed a fortune in silver. This video tells the story of Nelson Bunker Hunt, and how they tried to corner the market. For discussion: 1. Who were the Hunt brothers, and what was their...
  • Crowd Funding for Entrepreneurs

    Not long ago, entrepreneurs raised money to launch their ideas by calling friends and family, tapping into their personal credit, or borrowing from the bank. Today, crowdfunding is a source of funds small and large. Because of the potential to hurt...
  • Schools of Economic Thought: Keynesian versus Austrian

    Making financial policy decisions based on different schools of economic thought have consequences. This infographic below describes the Keynesian school of economic thought as compared with the Austrian school. For discussion : (1) What is the origin...
  • The Role of the Fed in Bank Regulation and Supervision

    A bank earns a revenue and makes a profit by earning interest on the money it lends to borrowers. Because banks are vital institutions for the health of our economy with their very special role in financial markets, it is important for bank regulators...
  • Rates, They Are A-Rising

    In its widely anticipated move, the Federal Reserve announced that it would be raising interest rates by 25 basis points (or 0.25 percent) in December 2016. The market was fully expecting this move, and the question was not whether the Fed would raise...
  • Wells Fargo: A Great Bank That Made a Terrible Mistake

    Wells Fargo made a mistake when it created incentives for employees to behave badly. On September 8, 2016, the CEO announced that the bank had reached settlements with the regulators regarding the unethical sales practices and would be taking corrective...
  • What is the Fed?

    Based on this video from the Federal Reserve: 1. What is the Fed and who runs it? 2. What does the Fed do and how does it do it? 3. Who does the Fed interact with?
  • Cyber-Security at the CME

    An exchange like the CME must take cyber-security very seriously. With millions of dollars worth of contracts changing hands daily, cyber threats must be dealt with quickly and efficiently. In July 2016, the CME Group announced that it was assembling...
  • History: The Fed Over 100 Years Ago

    The financial history of the U.S. is fascinating with the bank runs followed by the installation of the Federal Reserve System. From the website of the Federal Reserve : The Federal Reserve System, often referred to as the Federal Reserve or simply...
  • The Story of Warren Buffett

    He's the "Oracle of Omaha." His investing is legendary and he often offers his top rules for investing. He has been known to tell investors to stay away from leverage. "If you're smart, you don't need it. If you're dumb...
  • Why An Independent Central Bank?

    The central bank of the United States is independent of politics, but that's not the case for central banks in other countries. According to the FAQ on the Federal Reserve's website: Careful empirical studies support the view that central banks...
  • The LSE and the Deutsche Borse

    You will find more statistics at Statista This week, nearly all London Stock Exchange (LSE) shareholders voted in favor of a merger with the Deutsche Borse. The vote now goes to shareholders of the German exchange. The question remains as to...
  • MYTH: The Fed Prints Money

    The common myth is that the Federal Reserve simply prints money when money is needed. But this video from the Richmond Fed explains that this common view is incorrect. The Fed does issue, distribute, and store currency, and it uses the money supply...
  • Taxing Trades

    Taxes serve two purposes: (1) raise government revenue, and (2) discourage specific behaviors. The problem is that goal number 2 erodes the impact of goal number 1. This is likely to be the outcome of recent proposals to tax trading. One proposal focuses...
  • The Excitement over Brexit

    We were sure it was just talk. Never in a million did we really think that the UK would leave the EU. You will find more statistics at Statista But it did. News wires were buzzing this morning with the news that the UK has voted to leave the EU...