• On Tulips and Bitcoin: Financial Bubbles Then and Now

    The more I hear Bitcoin discussed in everyday conversation as I'm standing in line at the store, the more I am convinced we've gotten ourselves stuck in a crazy time machine and have been plunked down onto the streets of Amsterdam in the 17th...
  • How Options Work

    Option contracts are agreements between a buyer (holder of the option) and a seller (writer of the option). The agreements give the holder the right to buy or sell an underlying asset at a predetermined strike price on or before a future expiration date...
  • 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...
  • How and Why To Invest In Commodities

    The best assets to add to an investment portfolio are those that increase the portfolio expected return while reducing the total volatility. To find such assets, investors seek those whose returns are not perfectly correlated with the returns of the existing...
  • What Makes Markets Tick: The Rules of Adam Smith

    This Financial Times video reviews the rules of Adam Smith and what makes markets successful Rule #1. Markets work best when as many people as possible are involved Rule #2. Markets are most efficient when prices are transparent to many participants...
  • Best Money Practices for Millenials

    This infographic shows some best practices that millenials can use to improve their money management habits. For discussion : What can you add to the list? source: Nationwide
  • 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...
  • 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...
  • Should You Invest In This Market?

    The equity market has been climbing, and this video tells how investors are finally getting used to the idea. In fact, it claims that investors are learning to love this market where they have been nervous to join it so far For discussion What is...
  • Alternative Financial Services

    Banks aren't the only financial institutions that offer financial services. If you want to borrow money, you can use a rent-to-own store or a pawn shop. If you want to cash a check, you can use some store cashiers or a check cashing store. Each...
  • 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...
  • Key Person Life Insurance

    Key man risk, or key person risk, is the reliance on one or few individuals in the firm such that their departure will significantly impact the future of the business. The infographic below discusses factors that influence key person risk. But before...
  • What To Consider Before Applying For a Loan

    Growing your business requires capital, and entrepreneurs have several choices to finance their businesses. They can use their savings, they can sell assets, and they can borrow money from investors or from a bank. The infographic below identifies a...
  • What Is The Fear Index

    This video describes the relationship between stock prices and the volatility index called the VIX. This index tracks volatility based on the current prices for options on the CBOE. Call options allow holders to buy shares at a predetermined strike price...
  • 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...
  • What is Risk?

    In this video, Peter Bernstein explains that risk means "more things can happen than will happen." It doesn't necessarily mean we're in danger, just that we're facing uncertainty. In finance, many people define risk as the probability...
  • 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...
  • Why Buy Bonds with Negative Yields?

    Back in the old days, we taught finance assuming that zero was the lowest interest rate possible. Not so any longer. Today, interest rates are negative and investors are putting up with it. Why? Well, there are several reasons that investors are willing...
  • 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 Darling Stock of Hedge Funds

    This CNBC video shows that Alphabet (parent company of Google) is the new darling of hedge funds. What are hedge funds anyway? The SEC describes them like this: Hedge funds pool investors’ money and invest the money in an effort to make a...
  • The Financial Crisis: 10 Years Later

    This video is a series of snapshots of the financial crisis that shook the global financial markets in 2007. In it, you'll find sound bites of the failure of Northern Rock, the big British mortgage lender, Lehman Brothers, and more. From USA...
  • Best Financial Advice is Available For Free

    In this video, this blogger claims that the best financial advice fits on a single index card and is available for free. So what is on the index card? Spend only what you need to spend Save for retirement Invest properly
  • 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...
  • 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...