Abstract This paper explains that charting, in its most basic forms, is used to put fundamental measurements from an observation into a rational way of thinking ,thus bringing clarity to confusion. The author points out that charting primarily is dependent upon what data is being analyzed and who is doing the analysis. The paper stresses that charting can often become confusing because people make charts that display too much data within a single chart. Five chartingtechniques are illustrated in this paper: bar chart, candlestick charting, line charts, point and figure charts and three line break charts.
Table of Contents:
Introduction
Charting Rationale
ChartingTechniques Charting Types
The Bar chart Candlestick Charting Line Charts Point & Figure chart Three Line Break Chart Conclusion
From the Paper "This type of charting shown below is very similar to that of the bar chart. Except during the period between the open of trading and the close of trading a solid thick line is drawn in during the time-period in question. The same line appears in the bar chart but is not as defined and is the section between the open and last trade. Often this type of charting is used to analyze the short term forecasts of the stock. In addition to this the basic solid square represents a day which closes with a low and the open square in the chart represents a day where closing is on a high note/price."
Abstract The paper provides a brief financial overview of Wal-Mart. The paper then utilizes discounted cash flow valuation techniques, relative valuation techniques, cost of capital and capital budgeting in order to determine if Wal-Mart's stock is over-valued, under-valued, or just right. The paper shows how, irrespective of the quantitative analysis employed, the calculated stock value for Wal-Mart falls within the threshold and the current stock price is close to current stock value.
Outline:
Introduction
Brief Financial Overview of Wal-Mart
Valuation and Rates of Return
Free Cash Flow Model
Dividend Discount Model
Valuation Techniques Cost of Equity
Capital Budgeting and Risk
From the Paper "A stock is generally considered over-valued if the price-earning ratio is high relative to the rate at which a company's earnings are likely to grow. The converse holds true for an under-valued stock. Because of the complexity and importance of valuing common stock, various techniques for accomplishing this task have been devised over time. The techniques that will be used encompass: 1) discounted cash flow valuation techniques, where the value of the stock is estimated based upon the present value of some measure of cash flow, including dividends, operating cash flow, and free cash flow; and 2) the relative valuation techniques, where the value of a stock is estimated based upon its current price relative to variables considered significant to valuation; 3) cost of capital; 4) capital budgeting."
Abstract This paper analyzes Disney stock for August 2004 to September 2004, including whether or not this is a good company to work for or invest in. It includes one table and one chart.
Abstract This paper examines three major American stock exchanges: the New York Stock Exchange, the American Stock Exchange and the Nasdaq. The paper points out that they collectively represent thousands of publicly traded corporations, mutual funds and other entities, all with different trading prices and market capitalizations. To simplify the complex task of identifying performance trends that can affect the markets and the U.S. economy, a series of indices have been designed to guage market performance. The paper holds that the four most commonly cited indices are the Dow Jones Industrial Average, the Standard & Poor's 500, the New York Stock Exchange Composite, and the Nasdaq 100. The paper concludes that, while each index has its relative strengths and weaknesses, together these indices perform a valuable role in helping both the general public and investment experts make sense of the American stock markets.
Outline:
The Dow Jones
S&P 500
NYSE Composite
Nasdaq 100
Conclusion
From the Paper "The New York Stock Exchange created the NYSE Composite in the mid-1960s and revamped it in 2003 in what it called an attempt to modernize it and make it more transparent (TSC Staff, 2003). This involved removing mutual funds, trusts and derivatives from the index, which pared down its total membership by about 700. NYSE claimed that, under its old composition, the NYSE Composite was double-counting some companies that were also held in these mutual funds and trusts (TSC Staff, 2003). As part of the changes introduced to the NYSE Composite, NYSE also reset its base value from 500 to 5,000. This type of change has been made before, as the index was founded with only a base value of 50. These changes have arguably not diminished the overall value of the NYSE Composite index. Because NYSE trades many of America's oldest and largest blue-chip companies, it remains the flagship exchange for the American stock markets. Because the NYSE Composite provides a way to measure the overall performance of this important exchange, it will remain a critical stock market index."
Abstract The paper states that investors are wary about investing in the stock market and relates that a diverse stock profile and range of economic investments is essential, no matter how well or how poorly the market is doing. The paper states that the prescription in creating a personal finance plan is affected by an investor's risk tolerance, age, and general financial and personal profile. The paper highlights four stocks for the man-in-the-street type investor, pursuing a wise, diversified, and long-term strategy, to watch.
From the Paper "Yes, the name is funny. But this Indian company recently unveiled what may be the most exiting and important innovation in motor vehicles since hybrids. Tata has created a small, fuel-efficient $2,500 car that is the first car ever conceived that is likely to be affordable for the vast majority of the residents of the developing world. The populations of China and India are expanding exponentially, and have more disposable income, and wider distances to travel on their commutes. They wish to become car owners and car drivers, and Tata will satisfy this need without breaking their bank accounts."
Abstract This paper explains that investors in the stock market keep track of a variety of measures and benchmarks for determining value and for choosing what stock to buy and when to sell. The author notes that investors can gain value not merely from selling their stock but from earning dividends. The paper relates that the traditional fundamental strategy is to think of oneself not as a purchaser of shares of stock, but as a purchaser of companies.
From the Paper "Investors in the stock market keep track of a variety of measures and benchmarks for determining value and for choosing what stock to buy and when to sell. Investors can gain value not merely from selling their stock but from earning dividends, and this raises the question of what may be the relationship between stock price and dividends paid. Jeremy J. Siegel notes that the price of stock is like any other financial asset in that it "equals the present value of the expected stream of future cash payments to the owner," which themselves are uncertain and are "subject to the earnings of the firm": The uncertainty contrasts sharply with cash payments to bondholders, the value of which is fixed by contractual obligation."
Abstract This extensive paper is a discussion of using contrarian and momentum strategies when predicting the stock market in Taiwan. The paper begins with an introduction to the problem in Chapter One that also contains the hypothesis for the paper, the definition of terms section, and other valuable information. This information provides a basis for the paper and gives rise to the belief that both of these strategies are very important for issues that involve the stock market, especially in developing countries.
A review of the literature follows in Chapter Two where information available about the issue is presented and discussed. At least 50 sources are analyzed in order to receive a complete picture of the issue. In addition to contrarian and momentum strategies, information regarding stock markets and Taiwan in general are also addressed. Chapter Three discusses the methodology for analyzing the literature and determining what decisions can be reached about the validity of the hypothesis.
Chapter Four presents the qualitative findings that have been determined based on the literature review and analysis of the data, and Chapter Five offers conclusions, recommendations, and a summary of information. The study concludes with a look toward the future of the stock market in Taiwan.
Executive Summary
Chapter 1 - Introduction
Statement of the Problem and Hypothesis
Purpose of the Study
Importance of the Study
Scope of the Study
Rationale for the Study
Overview of the Study
Chapter 2 - Review of the Literature
Chapter 3 - Methodology
Chapter 4 - Analysis of the Data
Chapter 5 - Summary, Recommendations, and Conclusion
Summary of the Study Information
Recommendations for the Future
Conclusion
From the Paper "Some may feel that this type of criminal activity does not occur, but there is a concern that these people may be misinformed about what goes on when the stock market has difficulty. Instead, the belief of many is that stock market problems create the potential for much criminal activity and unethical conduct because many people feel that this type of behavior is the only way that they stand a chance of making back any of the money that they have lost when the stock market performs badly. Various strategies can be used, therefore, to keep the stock market strong, predict where it is headed, and keep the criminal activity to a minimum."
Abstract A brief company history and an overview of the valuation analysis are presented prior to the presentation of the valuation models and results. Five common stock valuation models are applied in developing a reasoned valuation of DuPont's common stock. These models are the constant growth dividend model, the variable growth dividend discount model, the price/earnings (P/R) multiple model, the constant dividend model and the total yield model. The concluding discussion evaluates the valuation models and considers the implications for the company of the reasoned valuation of the company's common stock.
From the Paper "Variable Growth Dividend Discount Model. The valuation of a common stock through the application of the variable growth dividend discount model is a three-step process. The first step involves finding the present value of the dividends expected to be paid on the common stock in the initial growth period. The second step involves finding the discounted value of the common stock at the end of the initial growth period. The third step involves adding together the two present value amounts to determine the present value of the common stock."
Abstract The thesis of this paper examines the present state of securities markets in Egypt in light of the country's needs for economic growth and analyzes their problems with the institutional measures currently existing. Following an introductory chapter on the importance of capital markets development for Egypt, especially with regard to the privatization policy currently adopted by the government, the thesis addresses the capital markets in Egypt under several points. It emphasizes the existing securities market and the securities stock exchange, with the available operations of the stock exchanges and the supply and demand of securities and the institutional investor interest in securities; determines the role of existing financial (non-banking) intermediaries as a source of capita for both the private and public sector that can be used to activate the capital market; discusses the role of the National Investment Bank (NIB) with its role as an intermediate chain between the various saving sources and the government commands, in addition to the rest of its roles; and analyzes the crucial role of the Capital Market Authority as the key organization and influence for capital markets development in Egypt. The paper also deals with the legal and tax framework, which serves as the background in which the capital market operates. Under this section, a study of the general laws that facilitate formations, operations, and issuance of securities by corporations is presented, as well as a study of the tax incentives and the financial accounting and auditing standards. In addition. the paper discusses the new capital market law.
From the Paper "In studying the failure of the Egyptian Stock Market to live up to expectations or, at the minimum, stabilize and expand to emerge as a coherent and viable economic entity, one can identify a number of causal factors, ranging from a general lack of awareness of the potentials of the stock market as an investment arena, to government interferences. While each of the many causal factors plays a significant role in explaining the stated failure, all pale in comparison to the politico-legal factors underlying that failure. Briefly and simply stated, the Egyptian stock market is subject to seemingly arbitrary investment laws which encourage neither stabilization nor investments. Over and above, the laws are constantly changed, or undergoing endless reform processes which communicate to potential investors that the market has yet to develop a tight and stable framework as would motivate investment."
Abstract This paper examines investment patterns before the New York stock exchange crashed in 1929. It discusses the causes of the crash, why people invested in stocks and the role of the government after the crash.
Paper Outline:
Introduction
The Cause
The Crash and The Depression
Why People Invested in the Stock Market
Government Reaction
Government Regulations After the Crash
Bibliography
From the Paper "Monetary policy became ambiguous between February 1930 and 1932. Government security purchases in the open market continued to decline until 1932. This reduced liquidity by lowering non-borrowed reserves. Although the interest rate was reduced between March 1930 and September 1931, it was raised twice in late 1931. This made loans more expensive and deterred people and corporations from borrowing. (1929...)"
Abstract This paper review the history and performance of the Nikkei 225 Stock Index in Japan. It reviews the history of Nikkei. It also includes the company's stock average and trading volumes.
From the Paper "This research reviews the history composition and performance of the Nikkei stock average in Japan. The findings of the review are presented as responses to separate but related questions. What is the Nikki and ..."
Abstract This paper suggests the reasons for the October 1987 stock market crash such as margin buying and stock overvaluation. The author points out peoples' reaction to it and what could have been done to prevent it. The paper compares compares the 1987 stock market crash to the 1929 crash.
From the Paper "On October ..., after having soared to a peak of in ... August ..., the Dow Jones Industrial Average dropped by .... points, losing ... percent of its value and engendering panic on Wall Street and in stock markets around the globe as ... trillion in the value of corporate America's stock literally evaporated. It is the purpose of this essay to examine the stock market crash and to briefly compare that crash to the significantly more dramatic and devastating October ... market crash. The report will ..."
This paper addresses recent developments in the stock market, examining three factors in its behavior - the Federal Reserve, investment banking practices, and industry trends - as reflected in three articles from well-known business magazines.
1,400 words (approx. 5.6 pages), 3 sources, 2002, $ 53.95
Abstract This paper addresses recent developments in the stock market, examining three factors in its behavior - the Federal Reserve, investment banking practices, and industry trends - as reflected in three articles from well-known business magazines. The paper describes the aftermath of the tech crash and the events of September 11 as reflected in the stock market, and makes predictions for the next three years based on the articles reviewed.
Abstract This paper expounds the ?Theory of Everything,? starting with the pioneering theories of Newton's "Laws of Motion" and Einstein's ?General Theory of Relativity,? developing right through to the cutting-edge "string theory" research currently being conducted around the world today. It shows the importance of fields of study as seemingly diverse as calculus, differential geometry, electromagnetism, particle physics and quantum mechanics to the development of a "Theory of Everything". It also demonstrates how those with access to this theory can use the knowledge as power for anything, such as understanding stock markets using the premise that the stock market moving up over time means that these are not random movements and therefore should be explainable.
From the Paper "Stock markets exist over time and space (the geographical markets) that we are able to quantify and understand to a degree. Therefore, as with Einstein, we are fairly comfortable with the stock market in its familiar four dimensions. We have become accustomed to inflation; the rising of prices of goods rise over time and this is obviously a major reason for at least part of the upward rise of share prices. However, what happens when we explore the smaller dimensions ? like the six unknown dimensions string theorists grapple with? Like the string theorists who know that subatomic matter exists but can?t explain or predict its behavior, we often know what influences the stock market but are usually unable to predict it."
This paper analyzes the stock market crash of 1987, by tracing its background, the events of the day in the financial markets and the effects of the crash on the U.S. and global economy.
Abstract The writer of this well-researched paper compares the events of 1987 to those which occurred in 1926, which brought about the Great Depression. This paper examines the causes and consequences of the 1987 crash, while also discussing the policy responses to the event and its future implications. This paper analyzes the status of the stock market 5 years prior to the crash. From 1982-1987 the Dow Industrial Average had risen from 776 points in August 1982 to a record high of 2,722 points in August 1987. This paper delves into the warning signs that were evident, prior to the crash, yet were largely ignored, including a weakening U.S. dollar, a rising trade deficit, inflation and the first short term interest raise in 3 years by the Federal Reserve. The writer discusses how the crash not only affected the U.S. stock market, but markets around the world as well. This paper looks at the U.S. trade and budget deficits that rose steadily during the 1980s, which have also been blamed for the crash. This paper delves into how the Federal Reserve responded to the crash, while also examining the reform measures taken to prevent a similar disaster in the future.
Table of Contents:
Introduction
Background
An In-depth Look at the Crash
Causes of the Crash
Federal Reserve's Response
Reform Measures
Conclusion
Works Cited
From the Paper "In the wake of the crash of 87 many analysts, including a presidential task force, laid the blame for the decline squarely on portfolio insurance. As evidence, they quoted the fact that portfolio insurance alone accounted for 12% of the selling in stock and index futures markets on October 19, 1987. According to the "blame portfolio insurance" theory, portfolio insurers came to the Monday's opening armed with an overhang of unexecuted sell orders from the accelerating decline of the previous week and placed large sell orders to initiate the decline in the market. From then onwards, as the market declined further during the day, the sell orders by the portfolio insurers kept on increasing to cater for their back log. To make matters worse, other investors who were not familiar with portfolio insurance, saw the declining prices and assumed that the selling was based on fundamentals and joined the queue of sellers; thus perpetuating the vicious circle."
