Friday, March 16, 2007

Critique of Federal Reserve Podcast

Today I will be reviewing Nadia and Nicole's Podcast on the Federal Reserve System. In order to clearly understand the content of the podcast, it should be clear and listenable. Nicole and Nadia's podcast was very understandable and clear which allowed me to hear every word they said. It was very informative and they had enthusiasm and humor in their podcast, which helped the podcast not become boring. It was very creative and interesting the way they created their podcasts, making themselves reporters and actually being part of the Federal Reserve System in order to talk about it. Eventhough, some of the pictures were repeated and didn't really help the viewer get a better understanding of what they were talking about.

Thursday, March 15, 2007

Compound Interest and Rule of 72

Compound Interest is basically the interest that is added onto the original principal, but also on the interest that has accumulated over time on the principal. So as it was stated, it is the interest on the interest. If there is an interest over a frequent period of time the more accumulated interest will create additional interest. The Rule of 72 shows the growth of a compound interest. The rule of 72 is a formula that can tell you how long it would take to get a certain amount you are aiming for, what percentage of interest you would need if you were to have a time limit and what the outcome of your money would be when you calculate the interest rate and the time.

Monday, March 5, 2007

Insider Trading Scandal - What Happened?

On March 1st 13 people were charged by the U.S. Government with securities fraud, wire fraud, bribery, including employees at major Wall Street banks. UBS and Morgan Stanley charts were also part of it. Insider trading is illegal because it gives people an unfair advantage over the others. The insider trading schemes involved Securities executives who were accused of selling information about upcoming analyst upgrades and downgrades. They were accused of giving out information about mergers and acquisitions. It was said two brokers were involved in blackmailing . They made profits of about $15 millionover the years. This is very unfair to the rest of the people who are trying to make money the right way, without any illegal activities. Insider trading is very dangerous because I believe it ruins your whole reputation if you are part of it. If I were to buy stocks of a certian company and suddenly its stocks went up, of which almost nobody expected, it would a little bit suspicious for many. I believe this is why this case was investigated and was found what these people were doing illegaly.

Stock Market Game 1- Initial Investment Strategy

The stock market is a relevantly new subject to me, even though I live in a city which is the home of the stock market exchange. Since I am starting with 50,000 dollars to invest in the stock market, I think I will begin by investing in one of the most known companies, like apple. I would invest in companies that I know and have purchased from. Afterwards, I think I will move on onto buying stocks from companies which are less known, but have the chance to do very well. I also plan to risk myself in these investments, but not so much as to lose all my money.