A Ponzi scheme is a scandal where new investment money is used to create the illusion of returns. A Ponzi scheme (named after Charles Ponzi, who in the early 1900’s was the first to effectively implement such a scheme) is essentially a confidence trick. As an example, suppose 10 people each give someone $100 to invest, with the promise of a 10% return (in addition to the $100 principal) in a year. During the course of that year, 20 more people invest $100 each as well (for a total of $2,000 from the second group). Continue reading...
Throughout the history of the U.S. Stock Market, there have been countless crooks, swindlers, and villains. Money can drive people to cheat, and there have been no shortage of cheaters over the years. Undoubtedly, the biggest hoax in the history of the market is credited to Bernard Madoff, who made off (no pun intended) with over $10 billion of his investors’ money through a massive Ponzi scheme. However, there have been countless other criminal activities, such as the Enron scandal of the early 2000’s. Continue reading...
The cryptocurrency community has opened up creative options for making money in the form of lending platforms. A few forms of lending exist for cryptocurrencies at the time of this writing. One way to do it is to make your funds available in a lending market facilitated by an exchange, such as Poloniex, where you can name your interest rate and allow other traders to use your funds for trading on margin. Continue reading...
Not all hedge funds are obligated to disclose their holdings, trades, or performance. About half of them are, however, and their performance can be found online through Morningstar and other sources. This information may not be as detailed as you would like, and you may try other means. Since the Dodd-Frank Act in 2010, more information about hedge funds is available to the public. This does not mean that all the information you seek will be readily available, however, and there are many hedge funds that do not make their information public. Continue reading...
Dive into the shadowy realm of Ponzi schemes, the infamous financial scams that have ensnared countless investors. This comprehensive exploration delves into the mechanics, history, and red flags associated with these deceptive investment strategies. From the tales of Charles Ponzi and Bernie Madoff to the differences between Ponzi and pyramid schemes, this guide offers a deep understanding of a persistent financial menace. Whether you're a novice investor or a seasoned financial professional, this exploration equips you with the knowledge to navigate the treacherous waters of financial fraud. Arm yourself with insights and stay one step ahead of the swindlers. Continue reading...
The Black-Scholes formula is a formula and market model for explaining or determining the price of European-style options. It was developed in 1973 by two world-renowned economists, Fischer Black and Myron Scholes, and it led to a Nobel Prize in 1997. As opposed to the American-style of options, which can be exercised at any time, European-style options can only be exercised on their expiration date, they are not exposed to dividends, and they have no commission structure to consider. Some are content to use Black-Scholes for quick applications to American-style, but It is not as accurate as it should be. Continue reading...
A pyramid scheme is a fraudulent and unsustainable investment pitch that relies on promising unrealistic returns from imaginary investments. Continue reading...
Option prices are decided by the buyers and sellers in the marketplace, but are tied closely to the amount of risk inherent in the agreed upon expiration date and strike price. Option prices change as the market factors in the relevant information. The main factor is the strike price. The closer an option’s strike price is to the actual market price of a security, the higher it’s price will be. Once it’s in-the-money, it has inherent value that makes it essentially the same price as the market security that underlies it. The expiration date of the contract is also a factor because if the expiration date is closing in, and the strike price is not quite close enough to the market price of the underlying asset, there is little chance that the option will be useful. Continue reading...
Fraud is a deceitful act with the explicit purpose of gaining an unlawful advantage or depriving a victim of their rights. It's a term that permeates various facets of our society, and within the realm of finance, fraud takes on many forms. In this article, we'll explore the concept of fraud, its types, and the significant consequences it can unleash. Continue reading...
In the complex world of finance, there are numerous terms and practices that are designed to deceive and manipulate the market. One such fraudulent scheme is circular trading, a practice that can have far-reaching consequences for investors and market stability. In this article, we will delve into what circular trading is, how it operates, and the implications it has for the financial market. Continue reading...
Water, the most essential resource on our planet, presents a unique and compelling investment theme. This theme is not only fascinating due to its critical importance to life but also because of the diverse range of companies it encompasses. From consumer staples like National Beverage Corp., known for its LaCroix sparkling water, to utilities such as NiSource, and even technology-focused entities like Itron, which specializes in water usage measurement equipment, the water theme offers a broad spectrum of investment opportunities. This diversity means the sector's performance varies across economic cycles, with utilities and consumer staples generally offering stability during downturns, while technology-oriented firms may thrive in periods of economic expansion. Continue reading...
Ripple’s XRP has the third-largest market cap in the cryptocurrency world, but what gives it value? Ripple Lab’s intent was not to be a store of value or a currency, per se, like Bitcoin. Neither did it intend to be a platform for developers to explore the possibilities of blockchains, like Ethereum. Ripple was always focused on being a payment system, facilitating transfers between banks, currencies, and countries in a way that would not be possible without blockchains. Continue reading...
The world of investing is vast and varied, with opportunities spanning across various industries and sectors. One such sector that has consistently shown promise is the Specialty Stores Theme. In this article, we will delve into this theme and take a closer look at some of the top companies that make it shine. Continue reading...
In the dynamic world of finance, identifying top-performing stocks is crucial for investors seeking growth and stability. The "Millennials Play Theme" represents a unique segment in the market, encompassing companies that resonate strongly with the millennial generation. These organizations are primarily concentrated in the communication services and real estate sectors, each offering distinct opportunities and challenges for investors. Continue reading...
The RIP industry, comprising operators of home health, hospice services, funeral homes, and manufacturers of memorial products and caskets, presents unique investment opportunities. In this article, we will delve into the RIP theme, its market dynamics, and highlight some of the top stocks worth considering in this sector. Continue reading...
The stock market is a dynamic and diverse universe, housing various sectors that cater to different investor preferences and market trends. One such intriguing sector is the forest category, which includes companies engaged in owning, managing timberland, manufacturing, and distributing wood and wood-alternative products. This article delves into the financial aspects of this sector, focusing on market capitalization and key players like Pope Resources, Universal Forest Products Inc., and Louisiana-Pacific Corp. Continue reading...
Mortgage fraud is misrepresentation in mortgage contracts designed to benefit one or more parties to the contract. Sometimes it can be as simple as an applicant lying about financial information to make himself seem more credit-worthy. Sometimes it can involve a few people, such as a real estate agent, an appraiser, and a lender, all colluding to split the profits on a property that isn’t worth as much as they say it is. Continue reading...
Unveiling the titans of the 5G era! Dive into the companies at the forefront of the next-gen connectivity revolution, shaping a future where technology knows no bounds. From chipmakers to telecom giants, discover who's who in the 5G landscape." Continue reading...
In the dynamic landscape of the stock market, certain themes emerge as critical areas of focus for investors. One such theme that has garnered significant attention is the generator sector, comprising companies that specialize in energy generation and related technologies. Among these, Nextera Energy Inc (NEE), Southern Company (The) (SO), and Generac Holdings (GNRC) stand out due to their market presence and financial performance. Continue reading...
In the diverse world of retail, the Income Inequality Theme (IIT) stands out for encompassing a broad spectrum of companies catering to various consumer segments. This theme is particularly relevant in times of economic fluctuation, where consumer preferences and spending patterns can shift dramatically. Continue reading...