Tibet Business Alliance

Posts Tagged ‘The Role of Stock Market Speculation: DEVELOPMENT’

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 »