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Selected Articles in Finance - Term Paper Example

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Name of the Writer Professor Anderson Fin 493 Date Submitted Selected Articles in Finance Introduction There’s always something interesting happening in the world of finance, that impacts on the lives of ordinary citizens. From fluctuations in stock prices and market indices, to interest rate swaps and municipal bond deals, IPO offerings and investment bank scandals, financial events and decisions affect us in myriad ways…

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Selected Articles in Finance

For example the CAC 40 Index gets its name from the 40 top stocks dominating the French stock exchange. The index rises and falls in line with the volume of stocks traded and the prices at which the trades are made. When the trend of prices is falling, the market is said to be bearish and when the trend of prices is rising, the market is said to be bullish. Like a business cycle with its peaks and troughs, the stock market also has similar tendencies (www.abcsofinvesting.net). The article by Joe Weisenthal dated 27 Sep 2010 claims that Apple and Microsoft have broken the Stock Market indices. He bases his claim on the Nasdaq 100 index and states that it gives a weight of 20 percent to Apple, and 80 percent to all the other stocks. Similarly it is claimed that the DJIA gives too much weightage to Caterpillar and since it is trading at three times the value of Microsoft, the DJIA is similarly affected. This also impacts on the value of Exchange Traded Funds of ETF, which track the value of an index. ...
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