May 20, 2008
Do you remember the television program, “Who wants to be a Millionaire“?The show was actually featured in a terrific book “The Wisdom of Crowds” by James Suriowiecki. If you remember, the contestants were given three “lifelines” to help them. The first lifeline was the “50/50,” where two of the four possible answers were eliminated. So, [...]
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March 16, 2008
UPDATE: Sunday evening, 03/16/2008: Bear Stearns to be acquired by JPMorgan Chase for $2.00 in stock swap deal. That is NOT a typo! The stock closed at $30 on Friday. On Thursday, it was $57.00. And yes, it was $150 last summer. This, essentially became a giant margin call on Bear Stearns. Apparently, cash — [...]
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Mark to the Market: what is it?
October 2, 2008Quick history lesson: Mark-to-the-Market was a practice originally begun by futures and commodity traders in the 19th century. Essentially, mark-to-the-market means your holdings must be “priced” every night…at the price they can be sold at. For years, many bank and investment companies carried investments at cost, or even sometimes at the face value. This never [...]