Financial Markets

Breakdown of Gas Prices

This video explores the relationship between oil and gas prices and the cost breakup for the price you pay for the gas at the pump. Source: Khan Academy

J.P. Morgan’s $2 billion ‘Stupid Mistake’

The bad news from the financial industry just doesn’t seem to stop. J.P. Morgan has just announced that it has lost $2 billion and possibly a further $1 billion loss due to its chief investment office (CIO). This loss occurred … Continued

Volcker Rule

A proposal that bans banks from indulging in high risk speculative trading that endangers the deposits of average customers is being fiercely opposed by most banking institutions in the USA. The proposal which is on its way to its final … Continued

SEC Filings: Forms Providing Key Information for Analysts

To comply with the various reporting requirements, companies are required to file (complete and submit) various standardized forms issued by SEC. There are more than 50 such forms for satisfying different requirements. In this article we will list and discuss … Continued

Market Efficiency and Its Three Forms

In this video we will take a look at the concept of market efficiency and the three forms of market efficiency. Market efficiency is a very important concept for a portfolio manager. Market efficiency, a concept derived from the Efficient … Continued

Margin Trading – Purchasing Stocks on Margin

An investor who wants to take a position in a stock but doesn’t have enough funds can use borrowed funds to purchase the asset. This is called a leveraged position, and the investor is said to be using leverage. One … Continued

Equity: Types of Orders

This video discusses various order instructions that are supplied along with an order. The video also explains market orders, limit orders, stop loss orders and other order instructions. In the stock markets buyers and sellers interact with the brokers and … Continued

The Liquidity Problem

The Traditional View of Liquidity Within the U.S. economy, the central bank, officially known as the Federal Reserve (or the “Fed” for short), has been seen as the source of banking system liquidity. The Federal Reserve can alter the supply … Continued

CFA Level 2: Fixed Income Part 1 – Introduction

This tutorial is the first in two parts covering fixed income.  The objective of these sessions is to build on the foundation created in Level 1 in order to establish a competency of valuing more complex fixed income securities beyond … Continued

The Process of Valuing Equity

Valuation: Relative vs. Intrinsic Relative valuation is an approach where an asset’s price attractiveness is evaluated in comparison to the valuation of like securities. For example, an analyst may calculate the justified P/E ratios for stocks in a specific industry … Continued

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