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A Closer Look at High-Frequency TradingOnce, stocks were traded through the open outcry system. Today fast, interconnect...
17/05/2022

A Closer Look at High-Frequency Trading

Once, stocks were traded through the open outcry system. Today fast, interconnected computers have mostly replaced the traders shouting prices on the floors of stock exchanges. Joe Saluzzi is a head of equity trading at Themis Trading in New Jersey. “The equity market has changed. It’s no longer what you see on TV, it’s no longer guys with colored jackets running around the floor anymore. The equity market is a bunch of co-located computers strung together by a bunch of wires, everyone trying to race to zero. The speed of light is the goal.” Computers can process stock trades in thousandths of a second. Andrew Haines of Gain Capital is an online broker. “A millisecond can mean millions of dollars to the success of your strategy. Having a one, two, three millisecond advantage over other traders may mean that you get into a trade at a preferable price.” Andrew Haines says an estimated seventy percent of all stock trades are high-frequency trades made with complex computer models. Stocks may be held for only seconds. But fast trades are also blamed for big moves in stock prices. On May sixth, two thousand ten, a leading measure of American stocks briefly fell about nine percent. The Dow Jones Industrial Average then recovered much of those losses by the end of trading that day. The Securities and Exchange Commission ordered steps to prevent future “flash crashes” like that one. Joel Hasbrouck of New York University says those steps are working. “They’re called circuit-breakers, and basically what they mean is that when a stock has moved by a large amount in a short period of time, there’s a trading halt.” Joe Saluzzi of Themis Trading says the main problem with high-speed trading is an unbalanced market. “The stock market used to be a predictor of the future economy. Now I think the stock market is a backwards predictor. It’s forecasting the next microsecond move. It’s not forecasting the next six months, because most of the volume is being dominated by guys who could care less what goes on in six months. So, how could you think the price is being set correctly?” But Joel Hasbrouck says high-speed trading can reduce sharp rises or drops in stock prices. “In normal circumstances, high-frequency traders act as market-makers. That means they stand by passively waiting to buy or sell from whoever comes into the market needing to trade. In that capacity, they actually help stabilize the market.”

Reassessing the Impacts of Brain Drain on Developing CountriesBrain drain, which is the action of having highly skilled ...
16/05/2022

Reassessing the Impacts of Brain Drain on Developing Countries

Brain drain, which is the action of having highly skilled and educated people leaving their country to work abroad, has become one of the developing countries concern. Brain drain is also referred to as human capital flight. More and more third world science and technology educated people are heading for more prosperous countries seeking higher wages and better working conditions. This has of course serious consequences on the sending countries.

While many people believe that immigration is a personal choice that must be understood and respected, others look at the phenomenon from a different perspective. What makes those educated people leave their countries should be seriously considered and a distinction between push and pull factors must be made. The push factors include low wages and lack of satisfactory working and living conditions. Social unrest, political conflicts and wars may also be determining causes. The pull factors, however, include intellectual freedom and substantial funds for research.

Brain drain has negative impact on the sending countries economic prospects and competitiveness. It reduces the number of dynamic and creative people who can contribute to the development of their country. Likewise, with more entrepreneurs taking their investments abroad, developing countries are missing an opportunity of wealth creation. This has also negative consequences on tax revenue and employment.

Most of the measures taken so far have not had any success in alleviating the effects of brain drain. A more global view must take into consideration the provision of adequate working and living conditions in the sending countries. Another option should involve encouraging the expatriates to contribute their skill to the development of their countries without necessarily physically relocating.

RamadanRamadan is the ninth month of the Islamic calendar. It is the Islamic month of fasting, in which participating Mu...
16/05/2022

Ramadan

Ramadan is the ninth month of the Islamic calendar. It is the Islamic month of fasting, in which participating Muslims refrain from eating, drinking from dawn until sunset. Ramadan had been the name of the ninth month in Arabian culture long before the arrival of Islam. In the Qur’an it is said that “fasting has been written down (as obligatory) upon you, as it was upon those before you” which is a reference to the Jewish practice of fasting on Yom Kippur. Fasting is meant to teach the Muslim patience, modesty and spirituality.

Ramadan is a time for Muslims to fast for the sake of God and to offer more prayer than usual. During Ramadan, Muslims ask forgiveness for past sins, pray for guidance and help in refraining from everyday evils, and try to purify themselves through self-restraint and good deeds.

As compared to the solar calendar, the dates of Ramadan vary, moving backwards about ten days each year as it is a moving holiday depending on the moon. Ramadan was the month in which the first verses of the Qur’an were said to be revealed to the Islamic Prophet Muhammad. That was during a night that Muslims call Laylat al-Qadr (the night of decree.) The night is believed to be one of the 10 last days of the month.

Retirement Savings Rule 1: Reduce Investment Risk as the Day NearsToday, retirement can mean different things. For many ...
14/05/2022

Retirement Savings Rule 1: Reduce Investment Risk as the Day Nears

Today, retirement can mean different things. For many Americans, it means the end of the money-earning part of their life and the beginning of a period of enjoyment. But retirement calls for planning and savings. In many countries, employers may offer some kind of retirement savings plan. The plan could be linked to the company’s stock or to a managed investment service. Almost any financial planner will say workers should use these plans to save money easily: often directly from their wages. But an employer plan should not be your only way to save for retirement. Pete D’Arruda heads his own financial planning company and gives retirement advice on radio shows and television. He tells people to save whenever possible. But he says as retirement nears, you must take fewer financial risks. “There’s three stages of life there when we look at it. There’s the part where you’re earning money. And when you’re earning money, if you have a salary, it makes it easier to take risk because you know that if you lose the money you can go back and earn some more.” By risks, Pete D’Arruda means investing in stocks and other financial instruments that can lose value quickly. He says people should move money away from riskier investments as they age even if there is a possibility of a higher rate of return. Instead, investors nearing retirement should seek more secure investments for their savings. “But then we get to the transition phase when we’re within five years or so of retirement. I call it the financial red zone because now is the time when you need to protect what you have, you need to start transitioning away from the risk of Wall Street and into safe places that guarantee lifetime income.” Pete D’Arruda has a simple way of deciding how much of your retirement savings should be at risk. He says take your age and put a percentage after it. That is the percentage of your retirement savings that should be fully protected from losing value. So, for a sixty-five-year-old, “sixty-five percent of the money must be in a place that can’t lose it. The reason why is when you’re in retirement it’s impossible to get the money back that you lost because you don’t have a salary coming in.” One recent survey by the Charles Schwab company found that forty-four percent of baby boomers feel secure in their readiness for retirement. Baby boomers are the generation of Americans born after World War Two.

Gold Keeps Shining, 40 Years After Nixon Ended Gold StandardThe best example of something is often called the “gold stan...
14/05/2022

Gold Keeps Shining, 40 Years After Nixon Ended Gold Standard

The best example of something is often called the “gold standard.” It sets the standard against which other things are measured. In economics, the term describes how major trading nations once used gold to set currency values and exchange rates. Many nations continued to use the gold standard until the last century. In the United States, people could exchange paper money for gold from the eighteen seventies until nineteen thirty-three. President Richard Nixon finally disconnected the dollar from the value of gold in nineteen seventy-one. Some politicians from time to time call for a return to the gold standard. But in nineteen seventy-eight the International Monetary Fund ended an official gold price. The IMF also ended the required use of gold in transactions with its member countries. Since that time, gold prices have grown, but unevenly. Prices – uncorrected for inflation – have hit record highs recently above fourteen hundred dollars an ounce. But people keep buying. Neang Chan Nuon is a gold shop owner in the Cambodian capital, Phnom Penh, and says: “Some of my customers have even bought more as they believe the price will probably go higher. I sell more gold at these higher prices.” Some people are “gold bugs.” These are investors who say people should buy gold to protect against inflation. People have valued gold for thousands of years. The soft, dense metal polishes to a bright yellow shine and resists most chemical reactions. It makes a good material for money, political power – and, more recently, electrical power. If you own a device like a mobile phone or a computer, you might own a little gold in the wiring. The gold standard was the subject of one of the best-known speeches in American political history. It took place at the eighteen ninety-six Democratic National Convention in Chicago. William Jennings Bryan wanted the country to use both gold and silver as money. The idea was to devalue the dollar and make it easier for farmers to pay their debts. Bryan said: “You shall not press down upon the brow of labor this crown of thorns. You shall not crucify mankind upon a cross of gold.” The speech made William Jennings Bryan famous. He was a presidential candidate three times. But he never won.

A stereotype is a fixed idea that people have about what specific social groups or individuals are like, especially an i...
12/05/2022

A stereotype is a fixed idea that people have about what specific social groups or individuals are like, especially an idea that is wrong. Other terms that are associated with the term stereotype are prejudice and cliché. The term has a Greek origin: stereos means solid or firm and typos mean impression, engraved or mark. The term was first used in the printing business. The first modern English use of the term was in 1850, meaning “image perpetuated without change.”

Because stereotypes are standardized and simplified ideas of groups, based on some prejudices, they are not derived from objective facts, but rather subjective and often unverifiable ideas. As Sociologist Charles E. Hurst states “One reason for stereotypes is the lack of personal, concrete familiarity that individuals have with persons in other racial or ethnic groups.”

The existence of stereotypes may be explained by the need of groups of people to view themselves as more normal or more superior than other groups. Consequently, stereotypes may be used to justify ill-founded prejudices or ignorance and prevent people of stereotyped groups from entering or succeeding in various activities or fields. The stereotyping groups are, generally, reluctant to reconsider their attitudes and behavior towards stereotyped group.

Stereotypes may affect people negatively. This includes forming inaccurate and distorted images and opinions of people. Stereotypes may also be used for scapegoating or for making general erroneous judgments about people. Some stereotyping people may feel comfortable when they prevent themselves from emotional identification with the stereotyped group, which leads to xenophobic or racist behavior. Finally another serious consequence of stereotypes is the feeling of inferiority that the stereotyped people may have and which may impair their performance.

10/05/2022

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Society and its problemsAs we live in a very modern society fully using the gifts of nature and technology it is not sur...
10/05/2022

Society and its problems

As we live in a very modern society fully using the gifts of nature and technology it is not surprising, that we often observe different problems of people, who have lost the feeling of responsibility and humaneness. It concerns everybody, children and adults.

Children at schools no more play on the playgrounds, communicating with each other normally, help each other without waiting for something in response. They are playing virtual games, spending hours writing messages, watching movies and competing with each other on who has better clothes or cell phones. Moreover children had become more independent and self confident. It is good, that they know now their rights, but it is more than bad that they offend their parents, do not respect them and talk rudely to them.

Adults have their own problems, in spite of being more experienced and smart. Alcohol, drugs, gambling are their ways of escaping from responsibility, everyday life, resolving home problems. Most of crimes happen because of alcohol and drugs. So many children suffer from violence by their parents being drunk or drugged. So many illnesses exist just due to the usage of drugs and alcohol. There are so many deaths caused by this, and no one can reduce its rate for so many decades.

I think that we as modern humanity should take more pains to prevent our children from going this wrong way leading to nowhere, just death and pain. No one knows his destiny and future, but it is in our power to fight the distribution and usage of drugs and alcohol in the society, and especially among young people. We need the right authorities which will realize the responsibility for the people, and heaviness of this burden. Only together we can open the real future for our children.

ApartheidApartheid was a system of racial segregation enforced through legislation by the National Party (NP) government...
10/05/2022

Apartheid

Apartheid was a system of racial segregation enforced through legislation by the National Party (NP) governments of South Africa. In this system, which lasted from 1948 to 1994, the rights of the majority black inhabitants of South Africa were curtailed and white supremacy and Afrikaner minority rule was maintained. South West Africans were also victims of apartheid as this country was administered by South Africa under a League of Nations mandate until it gained independence as Namibia in 1990.

Apartheid as an official policy was introduced following the general election of 1948. New legislation classified inhabitants into four racial groups (“native”, “white”, “coloured”, and “Asian”), and residential areas were segregated, sometimes by means of forced removals. Non-white political representation was completely abolished in 1970, and starting in that year black people were deprived of their citizenship. The government segregated education, medical care, beaches, and other public services, and provided black people with services inferior to those of white people.

Apartheid sparked significant internal resistance and violence as well as a trade embargo against South Africa. In addition to the unrest resulting from the internal protests, the sanctions placed on South Africa by the West made it increasingly difficult for the government to maintain the regime. In 1990 President Frederik Willem de Klerk began negotiations to end apartheid, culminating in multi-racial democratic elections in 1994, which were won by the African National Congress under Nelson Mandela.

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