Archive for the ‘Grow Page’ Category

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Verizon And AT&T Let The Competition In

Wednesday, October 7th, 2009

But will a more liberal network usage policy strain limited bandwidth resources?

  • With new FCC regulations looming, two of the telecom industry’s leaders announced on Tuesday that they would reduce restrictions currently in place on users of their cellular networks.
  • AT&T will now allow users to access Skype on the 3G network to make cheaper international phone calls, and Verizon plans to collaborate with Google to produce new cell phones that will be open to any mobile application.
  • Proponents of net neutrality recently found a voice in the FCC chairman, who argues that it is unfair for a company to restrict or filter Internet access for paying customers to advance its own interests.

Facts & Figures

  • Verizon is the nation’s largest cell phone company.
  • This announcement was made just one day before an important speech at a wireless conference by FCC Chairman Julius Genachowski.
  • Analysts say Verizon already has a more open network policy than most other telecom companies.

Best Quote

“The timing is nice. It is the carriers saying, ‘Okay, we are responding’ and answering the market needs while also trying to stay within the guardrails that appear to be going up at the FCC.” – Mike McGuire, Vice President of Research at Gartner

What do you do if someone gives you insider information?

Wednesday, October 7th, 2009

When someone has privileged or sensitive non-public information about a company that could affect its share price once the information becomes public, they can use that information to either buy or sell stock at the expense of the people they sell to or buy from who don’t have this information. This is called insider trading and it’s illegal. Let’s say you work at a company and know that the company just lost a ton of money, even though the public thinks the company is doing great. If you sell  your stock to the unwitting public, that’s insider trading.

But what if you are just given the information and aren’t actually an “insider” at the company? This is often called “tipping,” and it’s still illegal for you to trade based on that privileged information because the effect is the same – if people think that it’s not safe to invest because they are going to be taken advantage of by sneaky insiders and their friends, they won’t buy stock, and that’s bad for everyone.

An Investment is…

Wednesday, October 7th, 2009

An investment is something you buy in the hopes of making money on it, like stocks, bonds, real estate, etc..

A Trust is…

Wednesday, October 7th, 2009

A trust is a legal structure set up by one person (the trustor) for another person (the beneficiary) to use in the future. It is managed by a person or institution (the trustee). For example, a father might set aside money in a trust for his 16-year old son to inherit when he turns 18.

NASDAQ? DOW? S&P 500? Huh?

Wednesday, October 7th, 2009

With so many abbreviations running around the finance world, it’s only natural to be a bit confused.

These terms are often used in the news to give you a sense about the state of the economy. If the DOW is up, it’s a good thing and if it’s down, it’s not so good. But what’s the difference between these terms?

You can basically break them down into two categories: stock exchanges and stock indices. Stock exchanges are where different stocks are bought and sold – similar to a grocery store for household goods. Stock indices, on the other hand, measure a specific segment of the stock market by tracking the stocks of a particular group of companies – you could create indices that track car, agricultural, or computer companies.

NASDAQ is a stock exchange where over 5,000 different stocks are traded, while the DOW and the S&P 500 are stock indices. The DOW focuses on 30 of the largest American companies and the S&P focuses on 500 of the strongest American companies.

By looking at the performance (or daily change in value) of various stock exchanges and stock indices, investors are able to measure the strength of different sectors of the American economy.

Net Income is…

Wednesday, October 7th, 2009

Net income is the income that remains after subtracting all costs, expenses, and taxes. For example, if your frozen banana stand made $100 today but you had to spend $35 on bananas and then $5 in taxes, your net income would be $60 ($100 income – $40 costs).

A Share is…

Wednesday, October 7th, 2009

A share is a unit of ownership in a company. You can own shares of stock or shares in a mutual fund. The more shares you own, the larger your stake in the company or investment vehicle.

Ultrahigh-Net-Worth Families Reflect On The Recession

Monday, October 5th, 2009

A gathering of advisors to high-net-worth families reveals ongoing insecurity about more than just the market…

  • Reeling from the losses of the recession, wealthy families are expressing concern about what their changing financial positions will do to their family dynamics.
  • The success of family dynasties depends largely on each member managing the shared assets with a similar set of values and goals. But the sudden stock market crash brought to light hidden frictions and diverging interests in many families.
  • One particular point of anxiety is in commercial real estate. With the market so volatile and typical investors suddenly going through kind of financial-existential crisis, the old practice of buying up cheap real estate during down times just isn’t happening. What that means for the rest of the world remains to be seen.

Facts & Figures

  • According to a survey of 108 “ultrahigh-net-worth families,” 45% said their first concern these days is the economy and financial markets.
  • Other top concerns included government intervention in the markets and a commercial real estate crash.

Best Quote

“These families have recognized that autopilot is not a good strategy.” – Amelia Renkert-Thomas, Lawyer

An IPO is…

Monday, October 5th, 2009

An IPO or “initial public offering” is when private companies become public by making shares of their stock available to the public for the first time. Companies do this for lots of reasons including raising money, changing owners, to have a public currency to buy other companies, and/or to create an incentive for employees. After the IPO the public can buy shares of the company as they are now publicly traded.

Income Tax is…

Monday, October 5th, 2009

Income tax is an annual tax collected by federal, state, and sometimes local governments. It is structured so that the more money you earn, the higher the percentage you pay in income taxes. Income tax is the main source of revenue for the U.S. government.

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