Tibet Business Alliance

Posts Tagged ‘stock market speculation’

Speculation in the future market

When it exists or is planned to hold a strong position in cash and not adopted any coverage is also being speculated. Such action must be classified as passive or static speculation, unlike the previously stated, referring to speculation active or dynamic.

The high degree of financial leverage or “leverage effect” is achieved in the futures contract makes it especially attractive to the speculator participation in these markets, which is why those who perform dynamic speculative operations know that the important multiplier effect of capital gains will be very satisfying to provide correctly the trend of prices. Read the rest of this entry »

The Tobin Tax is a tax that is intended to discourage financial capital to participate in speculative trading. This is to charge a small fee for each transaction of purchase and sale of shares held and the currency exchange operations.

Due to the astronomical sums that are exchanged in these markets, the volume of taxes collected at the country level would solve the most urgent challenges of poverty in each of them.

The Tobin Tax is a matter of universal importance, is currently under debate in the parliaments of various European countries among which one can cite Finland, France, Germany, Switzerland, Britain, Belgium, Ireland, Spain and the European Parliament, plus Australia, Canada, United States, Brazil, Argentina and Chile. Read the rest of this entry »

The Need for Control of Financial Capital.

The instability of financial markets is transmitted to the “real economy” (that which saw us and feeds us) through the changes and volatility in stock prices, this instability is one of the most important causes of rising real interests that hold back domestic consumption and business investment, also deepen and encourage the public deficit, the pension funds that manage hundreds of billions of dollars, to demand higher dividends to their businesses.

The first victims of the hunt in pursuit of profit are the employees themselves, whose mass layoffs push up stock prices to their former employers. Read the rest of this entry »

The commissions and other costs caused by this market over the benefits to be gained, are transformed into purchasing power to be used in the real economy. Any costs and the profits will be transformed into purchasing power for services and products in the real economy, and affect a smaller return on the investment and work in the real economy, because both costs and profits of the financial economy are transformed into purchasing power can only materialize in the real economy.

While profits remain within the financial world, the only thing that occurs is an increase of money in the financial economy, but at the time of this money goes to the real economy in the form of costs or benefits materialized, purchasing power are encroaching on the real economy, because the products and services in the real economy can not be achieved within the financial economy. Read the rest of this entry »

Speculation and the capital market.

Much of the operation in the capital market, it is money that does not exist outside the market. It operates with money that is created by these operations. The broquers, traders, speculators, … capital markets and foreign exchange credit operations in the same way that credit gets formalized in the real economy.

Both the industry and trade, products and services are supplied continuously, but these products and services are billed periodically, in the same way that we get credit for utilities (telephone, water, electricity ,…) that but we continually consume billed periodically. Read the rest of this entry »

The economist and Nobel laureate in economics James Tobin points out that the $ 1.3 trillion exchanged every day in the financial market, few are related to productive capital, passing the savings from one country to another investment. Currently the developed world shifts to the “developing” some 200 billion dollars annually.

Most of these transactions are speculative money markets that have no direct link with the desirable investment flows. It is not productive capital that is the only capital these countries need. Read the rest of this entry »

Speculation against some currencies was about to end with the EMS in 1993, bringing about profound changes in the MTC. Although the term “speculation” is often used as a pejorative, is only one type of investment where the agent bears risks that can not be covered.

Unlike other traders, speculators do not try to avoid risks by going to options and futures markets to guarantee a minimum return, thus avoiding fluctuations in exchange rates or prices of raw materials.

Financial speculation.

There are two main lines through which passes the global financial speculation. The currency markets and stock markets. Read the rest of this entry »

DEVELOPMENT

The term speculation is known as the practice of buying at low prices with the intention of selling later at a higher price. Speculation has always been criticized in the popular language and political discourse, such as to make easy money at the gaming and gambling, also has been made responsible, especially when linked to hoarding, to produce higher prices and thereby harm consumers.

In fact, however, speculation is normal business practice that makes almost everyone in one way or another and serves to indirectly regulate the market, favoring both the profiteers and consumers. Read the rest of this entry »

Strong financial convulsions that have occurred regularly since the stock market crash of 1987 (European devaluations, Baring Brothers, insolvency in Japan, Mexican tequila, Asian crisis) have popularized the interpretation of the crisis as a phenomenon primarily speculative.

INTRODUCTION

Based on the critique of “swelling of the bubble,” he calls for “discipline the financial capital” and “international control speculation.” The aim is to prevent the “healthy industrial capital” continue drowned by the “financial idleness” of the “casino economy.” It is perfectly true that financial hypertrophy has grown over the past two decades due to the crisis and the consequent migration of capital to speculative activity. But the ultimate in this field is not the magnitude of the sums at stake, as primarily private and sophisticated nature are assuming all operations. ” Read the rest of this entry »