Question: – Why is Seagate undertaking this transaction? Is it necessary to divest the Veritas shares in a separate transaction? Who are the winners and losers resulting from the transaction? Solution: – Seagate is undertaking this transaction to generate significant wealth gains for Seagate shareholders. There is a value gap generates due to Seagate’s VERITAS stake. VERITAS stake value exceeds the entire market capitalization of the Seagate. Seagate faces two problems because of VERITAS stake. First, the company’s core disk drive operations were not receiving full value in the market. Second, the company would incur a significant tax liability if the company attempt to monetize its VERITAS stake be selling the shares. Yes, it is necessary to divest the VERITAS shares in a separate transaction. It helps the….
Category Archives: Stock Market
Over the past few years, many millionaires have been created due to the economical explosion of the stock market. The market isn”t just growing, as it did in the mid to late seventies; but it is on steroids, and is growing like never before. Backed by the relentless, yet sometimes spasmodic, growth of the NASDAQ Composite, Wall Street”s impact on the future cannot be denied. For as long as the market has been in existence, drastic changes such as these have never taken place. What awesome power could have produced so much money in so little time? What colossal force could have caused the United States” economy to flourish? The answer lies in one, simple, recently coined phrase: the tech stock. The stock market has been around since….
Long-run Macroeconomic Equilibrium and Stock Market Boom Let us assume the economy reaches its long-run macroeconomic equilibrium in 2020. When the economy is in the long run macroeconomic equilibrium, the stock market will also reach its boom. This will in turn lead to increases in stock prices more than expected, and the stock prices will stay high for some period. Answer the following questions based on the scenarios of long macroeconomic equilibrium and consequent stock market boom. B) Which curve will shift? Is it AS curve or AD curve? In which direction does the shift occur? The aggregate demand curve will shift right b) In the short-run, what will happen to the price level and output (real GAP)? In the short run both the price level and real….
The triggering event that led to the Wall Street stock market crash in October 1929 was the result of a steady decline in production, prices and income over the period of three months. Anxiety gave rise to panic thus resulting to the crash. The stock market crash affected various countries and the effects were intense. The depression affected greatly the United States because of the absence of welfare benefits for the laid off workers. Between 1929 and 1933, money income fell by 53 percent and as a consequence, demand fell significantly, which in turn led to lower production and more lay-offs up to 25 percent rate of unemployment in 1933. And yet despite the severity of the stock market crash, the Federal Reserve did not pursue a monetary….
In recent years the testing of market anomalies in stock returns has become an active field of research in empirical finance and has been receiving attention not only from academic journals but also from the financial press as well. Among the more well-known anomalies are the size effect, the January effect and the day-of-the week effect. According to this phenomenon, the average daily return of the market is not the same for all days of the week, as we would expect on the basis of the efficient market theory. The objective of this paper is to examine the existence of day of week effect in Indian stock market. Daily closing prices of S&P CNX Nifty index have been analyzed over fifteen years period commencing from January 1994 to….
The perception of efficiency is middle to economics. First and foremost, the term efficiency is used to explain a market in which pertinent in sequence is confiscate into the price of monetary assets. This is the main focal point of the research appraisal here.
Occasionally, though, economists use this word to refer to ready efficiency, highlight the way resources are working to make easy the operation of the market. The majority of this appraisal is concerned by the meaning, that is the informational efficiency of monetary markets. At the end of this research, we also believe the microstructure of monetary markets (Dimson, Elroy 2001, pp. 197-226).
2. Practically inefficient No doubt The efficient procedure of price strength of mind can be contrasted with an incompetent market, in which,….
What I Learned From My Stock Market Simulation Experience The stock market simulation has been a wonderful experience for me as a student in economics and as a person in today’s society. Knowledge gained in this project will give me the advantage to wisely choose the correct stock when I start investing my own money into the stock market. Different aspects of the simulation provided innovative and diverse ideas to propel me familiarity further into the grand realm of economics. When first assigned with the project I struggled a little on how best to allocate my funds into the best companies that would steady gain and gain through out the ten week period. Honestly I think I made a wise decision and used a financial advisor, Shibs, on….
A lot of people are confused when it comes to phones/electronic devices and their operating systems on their device, ISO android and Windows are the most important competitors when it comes to operating systems on different phones. Software that operates our phones is called the Mobile Operating Systems/ Mobile SO. Phone operating systems do not have to be made by one company; instead they are being made by several companies grouped. For example devices that run under Android are grouped together these SO are all made by Google, Devices that operate with ISO are made by Apple, and devices that operate with Windows are made by Windows. I work in sales of phone and tablet. What do I want to sell my consumer; Android, ISO or windows devices?….
Stock market is the place were all stocks and other securities buy and sell. Pakistan have three main stocks markets (KSE, LSE, ISE).Among these stock exchanges Karachi stock exchange founded on 18 September 1947.it was the largest stock exchange in Pakistan and oldest in the south Asia. its growing day by day. Many ups and downs are occurring in KSE due to political instability, securities threats and macro-economic issues but due to negative issues. its show a positive progress. Two types of KSE,100 and KSE 30 index. KSE 100 index rapidly growing in Pakistan indexes. 2013 is the best year in history of stock market in Pakistan on December 31 (25,261) points are occur which are great achievement. Top five companies in KSE 100 index are be capitalize….
I will be watching my shares closely so that I can make a choice to sell, buy or hold my shares 3i Group Established in 1945, is one of the UK’s biggest investors in private companies, it says its strategy is to go for early-stage growth companies rather than the financial wizardry favored by other ventured capitalists. It has been a big investor in technology companies in the past. The reason why I chose this company is that I followed the advice given to me in the lecture to not pick companies that I am familiar with. This chart shows the behavior of the share price over 6 months. I will undertake an analysis of BP. I have already invested 11,300 at a share price of 5. 65…..