Business & Financial Affairs Research Article Dinh and Gong‚ J Bus & Fin Aff 2013‚ 2:1 http://dx.doi.org/10.4172/2167-0234.1000108 Open Access A Fair Value and Hedge Activities Doan Van Dinh1* and Guangming Gong2 1 2 College of Economics and Trade Management of Hunan University‚ China and Faculty of Finance and Banking of the Industrial University of Ho Chi Minh City‚ Vietnam Business school Hunan University in China Abstract This article‚ author consider the fair value of financial
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Synopsis The Galleon Group was a privately owned hedge fund firm that provided services and information about investments. The group was founded in 1997‚ and attracted employee’s from Goldman Sach’s and Needham & Co. The company made its profit and other companies by choosing stocks carefully. Raj rajaratnam was an analyst for Needham for 11 years before leaving to start Galleon Group‚ he took several employee’s from his previous
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Plekhanov Russian Academy of Economics International Economics DERIVATIVE MARKETS FUTURES‚ FORWARDS‚ OPTIONS‚ SWAPS‚ CAPS AND FLOOR MARKETS Prepared by: Zagorskaya Ksenia 1. OVERVIEW OF DERIVATIVE MARKET Derivatives are financial instruments whose value is derived from the value of something else. They generally take the form of contracts under which the parties agree to payments between them based upon the value of an underlying asset or other data at a particular point in time.
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Group Project #1 The main benefit of a hedge fund is that an investor can make higher returns with a hedge fund compared to the market returns by using leverage from taking a short position in certain stocks. It is possible for the return for hedge funds to be maintained consistent regardless of whether the market is rising or falling. On average‚ a hedge fund will typically carry lower risk than the market. However‚ given the long/short strategy of hedge funds‚ there still exists a risk for significant
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Established in January 1999‚ Pine Street Capital (PSC) was a market-neutral hedge fund that specialized in the technology field‚ facing market risk and trying to decide whether and which way to use in order to hedge equity market risk. They choose technology sector because the partners of PSC felt that they have enough ability to evaluate this sector and specially be good at picking out-performing stock. Short-selling of NASDAQ and options hedging strategy are the two major hedging choices for PSC
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Discussed in this essay will be key factors that played in the development of the financial crisis of 2007‚ an overview of the causes and instruments used to the build up and possible preventions‚ followed by the influences from the government‚ if any that had an underlining effect toward the outcome. The Involvement Of New Bank Innovations Bank capital has a massive influence on the banking system effecting loan defaults‚ profits and lending‚ although the amount of outstanding lending has not
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firm became an early innovator in Risk Arbitrage. Risk Arbitage‚ or sometimes called merger arbitrage‚ is an investment or trading strategy often associated with hedge funds. Hedge Funds playing a big deal in today’s market. In 1986‚ the firm formed Goldman Sachs Asset Management‚ which manages the majority of its mutual funds and hedge funds today. Also in 1986‚ the firm underwrote the IPO of Microsoft‚ advised General Electric on its acquisition of RCA and joined the London and Tokyo stock exchanges
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Risk arbitrage (or merge arbitrage) is a trading strategy related to M&A transactions. For example‚ if an M&A transaction is carried out by means of share exchange between the buzzer and the target‚ then an arbitrageur may short sell buyer’s stocks and purchase stocks of the target. Until the acquisition is completed‚ the stock of the target typically trades below the purchase price. After the merger is completed‚ the target’s stock will be converted into stock of the acquirer based on the
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Hedge Trimmer Many folks take great pride in maintaining a healthy‚ lush‚ and manicured lawn. One of the aspects that can be included in these lawns is hedges‚ which are boundaries that consist of closely growing bushes and shrubs. If hedges are not properly kept up‚ they can make a house and its lawn look messy‚ so it is important if you have hedges to maintain them with regular‚ basic trimming at the very least. This is to ensure their growth and training‚ keeping them healthy and growing appropriately
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| FI475-Project Study | Six Derivatives Mishaps | 2012/5/8 | Sumitomo (future contracts) Background: 1996‚ Sumitomo Corporation was one of the top copper market makers in the world. During the over 10 years under Hamanaka‚ who was a genius charged on allegations that he could manipulate the price of the metal‚ Sumitomo lost at least $1.8 billion as a result of what it said were unauthorized trades‚ which then lost a third of its value on world markets in less than two months. The affair was
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