Term of the Week

Dead Cat Bounce

A temporary recovery from a prolonged
decline or bear market, followed by the
continuation of the downtrend. It is a small,
short-lived recovery in the price of a declining
security, such as a stock. Frequently,
downtrends are interrupted by brief periods of
recovery - or small rallies - where prices
temporarily rise. This can be a result of
traders or investors closing out short
positions or buying on the assumption that
the security has reached a bottom.

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TRIX BITE # 1
Person of the Week
Paul Krugman

American economist. Krugman is a Nobel Prize

winning American economist for his work on
New Trade Theory. Krugman is also a leading
polemist who rose to public prominence for his
attacks on the Bush Presidency. Krugman was
a noted critic of austerity and leading advocate
for a resurgence in Keynesian economics.

Did You Know!

Did you know that the lowest position of the
Dow Jones ever was 28.48?
This position was reached in 1896. For
comparison, the highest position ever was
17,068.26 in July 2014.

Sources: www. toonpool.com; www.Investopedia.com

Term of the Week

Backdoor Listing
It means going public through back door. The
process by which a company comes to have
publicly traded shares without an IPO. This
could happen through a reverse shell merger,
or through acquisition of a public company
and offering shares to previous owners.
Another way is thorough a series of private
placements, selling shares on an exchange
to institutional and other sophisticated
investors.

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TRIX BITE # 2
Person of the Week
Benjamin Graham
British-born American professional investor.
He is considered the father of
Value-Investing, an investment approach he began
teaching at Columbia Business School n 1928. He is
the co-author of the book Security Analysis with
David Dodd. Successful investors like Warren Buffett
and Irving Kahn consider Graham as their Guru.
Alongside his revolutionary work in investment finance,
Graham also made significant contributions to
economic theory. Most notably, he devised a new basis
for both U.S. and global currency.

Did You Know!

The Bombay Stock Exchange which started
in 1875 did not have a scale to measure the
ups and downs in the stock market. It was
only on 1st January 1986 that BSE came
out with a stock index The Sensex.

Sources: www. News.civilservicesindia..com; www.nasdaq.com

Term of the Week

Liquidation Differential
The loss in value of an asset after it has been
placed in receivership or liquidation. The
liquidation differential represents an
additional loss a failed asset would
experience, and is related to the information
cost that parties interested in purchasing the
assets of a failed bank would face when
researching the asset.

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TRIX BITE # 3
Person of the Week
Warren Buffett
He is widely viewed as one of the
most successful investors in history. Following the
principles set out by Benjamin Graham, he has
amassed a personal multibillion dollar fortune mainly
through investing in stocks and buying companies
through Berkshire Hathaway, an ailing textile mill
turned into a financial engine that powered what would
become the world's most successful holding company.
Shareholders in Berkshire Hathaway who invested
$10000 in the company in 1965 are above $50 million
mark today. Warren Buffett's investing style of
discipline, patience and value has consistently
outperformed the market for decades.

Did You Know!

Warren Buffett, the Warren Buffett, the
second-richest man in the U.S stuck with a
$100,000 salary in 2014, as he has for
decades to avoid being greedy. The
average pay of CEOs of top 350 firms in
USA around $ 16 million!

Sources: www. hindu.com; www.investopedia.com

Term of the Week

Moving Average
A widely used indicator in technical analysis. It is a trendfollowing or lagging indicator because it is based on past
prices. The two basic and commonly used MAs are the
simple moving average (SMA), which is the simple average
of a security over a defined number of time periods, and the
exponential moving average (EMA), which gives bigger
weight to more recent prices. Whether you are using the 50day, 100-day or 200-day moving average, the method of
calculation and the manner in which the moving average is
interpreted remains the same. It is the AM of a certain data
points. It aids an investor in choosing when to enter or exit a
certain position, which can act as a strong support or
resistance.

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TRIX BITE # 4
Person of the Week
Milton Friedman
An American economist and
statistician best known for his strong belief in freemarket capitalism. He strongly opposed the views
of
Keynesian
economists,
encouraging
governments to minimize their involvement in the
economy by reducing taxes and ceasing inflationary
policies. In his book
A Monetary History of the
United States, Friedman illustrates the role of
monetary policy in creating and arguably worsening
the Great Depression. The Friedman rule is a
monetary policy rule proposed by him through
which he advocated setting the nominal interest
rate at zero.Friedman's work in the field of
economics was recognized in 1976, when he was
awarded the Nobel Prize in Economics.

Did You Know!

The main article in the Economist in March 1999
was famously titled Cheap Oil : The next
shock? . The article surmised that oil prices could
be headed to $5 a barrel and prices might hover in
a normal range of $5 to $10.

Sources: www. thestar.com; www.investopedia.com

Term of the Week

Depository Receipt
A depositary receipt (DR) is a type of negotiable
(transferable) financial security that is traded on a local
stock exchange but represents a security, usually in the
form of equity, that is issued by a foreign publicly listed
company. The DR, which is a physical certificate, allows
investors to hold shares in equity of other countries. The DR
is created when a foreign company wishes to list its already
publicly traded shares or debt securities on a foreign stock
exchange. Before it can be listed to a particular stock
exchange, the company in question will first have to meet
certain requirements put forth by the exchange. Depositary
receipts that are listed and traded in the United States are
American depositary receipts (ADRs). European banks
issue European depository receipts (EDRs), and other
banks issue global depository receipts (GDRs) etc.

Cartoon of the Week

TRIX BITE # 5
Person of the Week
John Maynard Keynes
He was a British economist whose ideas have
fundamentally affected the theory and practice of
modern macroeconomics .He built on and greatly
refined earlier work on the causes of business
cycles, and he is widely considered to be one of the
founders of modern macroeconomics and the most
influential economist of the 20th century. His ideas
are the basis for the school of thought known as
Keynesian economics and its various offshoots. He is
well-known for his stance that national governments
should attempt to smooth out the effects of
expansion and contraction in the business cycle by
using fiscal and monetary policy.

Did You Know!

Venezuela can simultaneously be the worlds
cheapest and most expensive country because of its
multiple exchange rate systems. It has four exchange
rates including the illegal black market rate !!

Japan
Sources: www. japantimes.com; www.investopedia.com; www.bloomberg.com

Term of the Week

Bollinger Bands
A band plotted two standard deviations away from a simple
moving average, developed by famous technical trader John
Bollinger. Because standard deviation is a measure of
volatility, Bollinger Bands adjust themselves to the market
conditions. When the markets become more volatile, the
bands widen (move further away from the average), and
during less volatile periods, the bands contract (move closer
to the average). The tightening of the bands is often used by
technical traders as an early indication that the volatility is
about to increase sharply. This is one of the most popular
technical analysis techniques. The closer the prices move to
the upper band, the more overbought the market, and the
closer the prices move to the lower band, the more oversold
the market.

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TRIX BITE # 6
Person of the Week
Alan Greenspan
He was a American economist who served as the
Chairman of Federal Reserve of the United States
from 1987 to 2006. As chairman, Greenspan was
largely responsible for directing U.S. national
monetary policy; he is often credited with keeping
inflation at historically low levels. While widely
respected for his economic knowledge and political
savvy, Greenspan's critics have accused him of
causing the dot-com collapse of 2000. He was
subsequently criticized for contributing to the
subprime mortgage crisis. When his fifth term
expired in 2006, Greenspan retired from his
position at the Federal Reserve Board.

Did You Know!

The name of the company CISCO is not an
acronym as popularly believed. It has been
derived from San Francisco.

Sources: www. investopediacom; http://business.mapsofindia.com/;www..guardian.com