The Sarbanes-Oxley Act (SOX) has been introduced in 2002 for improving the reliability of public financial statements. Broadly speaking, the Security Exchange commission (SEC) wanted to prevent future corporate failures that could undermine the status of investors, enhancing financial disclosure and transparency. Taking this account, we would like to explain the advantages and the drawbacks…
The market was bullish since 1982 being influenced by new computational advances, low interest rates and a “merger mania”. The mentality after the “merger mania” became from the fact that investors believed that mergers were equal to growth, then more mergers meant that the company would grow indefinitely: a ridiculous mentality. These mergers were financed…
Banking system in modern society is so integrated into our life that I can hardly imagine a day without using my bankcard. But is our banking system so safe and we can just count on it? If so, why there are times people rush to the bank withdraw all their savings to protect themselves? To…
One of the most debatable topics when it comes to investing strategies is short selling. When in principle there is nothing wrong with short selling, policymakers and financial regulators remain sceptic and suspicious with regards this market practice given abusive market practices and the potential risks involved. Often perceived as highly risky strategies, short sell…
Do you think a right strategy should always bring money? Would you believe the trader who always beats the market by a huge margin? Unfortunately, a good profitable strategy brings losses from time to time. And even highly hedged strategies developed by professionals failed during the crisis. Still, as trading is the zero-sum game, while…
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