Research and visual aids for INV

This is a running list of images and video for the INV storyline written by Eisa Davis, first workshopped for presentation in February 2013 at HERE’s Culturemart festival in New York City. INFO & TRADING ROUNDS. Mayor Bloomberg ringing the NYSE opening bell, Oct 31, 2012 And for something sillier, Robert Downey Jr. ringing to … Continue reading

I need to be subsidized

Interstitial (trading round) videos

T.1 (preshow) Robert: introductory promo video playing (on loop?) at start MEDIA SAMPLES: COMPANY AD, TRAILER   T.2 (after E.1) Erin: maybe about the Currency Industry? Showing what money is, the different aspects of it? Or a rudimentary econ lesson about how money moves etc (like the Banking YouTube videos we found?) Have this conversation … Continue reading

The rape of a mattress company

The investment firm, which bought Simmons in 2003, has pocketed around $77 million in profit, even as the company’s fortunes have declined. THL collected hundreds of millions of dollars from the company in the form of special dividends. It also paid itself millions more in fees, first for buying the company, then for helping run … Continue reading

The Stock Market: Explained! by 1950s educational videos

Two gems I found on DVD. Sadly, since I don’t own the copyright, and don’t feel like getting into a kerfuffle with anyone, for now I’m just going to put them behind a password on Vimeo for our own internal use. So, Team TRADE PRACTICES, you know what to do. If anyone else is reading … Continue reading

Warren Buffett — Letters to Shareholders

From the 2011 letter: Positive updates: The primary job of a Board of Directors is to see that the right people are running the business and to be sure that the next generation of leaders is identified and ready to take over tomorrow. We view [our] holdings as partnership interests in wonderful businesses, not as … Continue reading

Talking Heads on Money – Media Sample

Peter Schiff was right: Jim Cramer on Mad Money: Squawk Box: The Kudlow Report: CNBC Fast Money:  

Different Classes of Common Stock

We know the difference between preferred stock and common stock, but what is the difference between common stock A  and common stock B? Some companies have different “classes” of common stock that vary based on how many votes are attached to them. So, for example, one share of Class A stock in a certain company might give … Continue reading

Warren Buffett

See here for Buffett’s influential NYT op-ed, “Stop Coddling the Super-Rich” Buffett’s TIME 100 2012 profile (written by Barack Obama, because why not) In the spring of 1942, an 11-year-old boy from Omaha made his first big investment, putting nearly his entire fortune — about $120 — into three shares of Cities Service Preferred. By June, the … Continue reading

Skynet will take over the NYSE first

From this morning’s New York Times: The trading firm Knight Capital recently rushed to develop a computer program so it could take advantage of a new Wall Street venue for trading stocks. But the firm ran up against its deadline and failed to fully work out the kinks in its system, according to people briefed … Continue reading

The Wisdom of Crowds: Bubbles and Crashes

notes from Surowiecki, James. The Wisdom of Crowds. (Anchor: 2005) Bubbles and crashes are textbook examples of collective decisionmaking gone wrong. In a bubble, all of the conditions that make groups intelligent — independence, diversity, private judgement — disappear. You don’t see bubbles in the “real” economy — they’re essentially a phenomenon of financial markets. When … Continue reading

LIBOR Manipulation Emails

Earlier this week, news broke that LIBOR, the London Interbank Offered Rate, has been manipulated by at least one bank (Barclays). LIBOR is “the bedrock of the financial system — the majority of American mortgages are somehow pegged to LIBOR.” LIBOR is a “global interest rate, calculated every day, which tells you how much interest … Continue reading

Is the Party Over?

[commenting on Sherman’s “The Emasculation of Wall Street”] notes on Lavelle, Louis. “Wall Street: Is the Party Over for MBAs?” Bloomberg BusinessWeek (online). 7 February 2012. – Big cuts in compensation have been accompanied by a decrease in recruiting and hiring of baby investment bankers. -Probably has the most to do with an oversupply problem — there … Continue reading

The End of Wall Street As They Knew It

notes on Sherman, Gabriel. “The End of Wall Street as they Knew It.” New York Magazine. 5 February 2012. From the outside, the seven- and eight-figure payouts that star bankers earned could seem obscene, immoral even. But on the inside, the outlandish compensation reflected a strict, almost moral logic. -Wall Street as meritocracy means that the bonuses are … Continue reading

Mergers & Acquisitions Basics

M&A— a company must have a strategic rationale for completing an M&A transaction. The goal should be to drive either an immediate or a near-term increase in shareholder value. Principle constituents of any M&A transaction – shareholders, employees, regulators, union leaders, credit rating agencies, equity research analysts, debt holders. Investment bankers have to render a fairness opinion to companies involved, … Continue reading

Basic Investment Banking/Hedge Fund Definitions

Investment banking: work with corporations that want to raise capital through public or private capital markets, risk-manage existing capital, complete M&A related transaction. Provide financing through direct investments in corporate equity and debt securities, provide loans.  A bond is debt in the form of a security, issued as a long-term obligation of a borrower with a … Continue reading

Mezzanine Investment

Mezzanine investment financing (also referred to as third-stage capital) refers to a later stage investment provided to a company that is already producing and selling a product or service, for the purpose of helping the company achieve a critical objective that, in many cases, will enable it to go public. Mezzanine investment financing provides for … Continue reading

Venture Capital

Venture capital is a kind of private equity. With venture capital, a big risk is taken in expectation of very high returns. Money provided by investors to startup firms and small businesses with perceived long-term growth potential. This is a very important source of funding for startups that do not have access to capital markets. … Continue reading

Share Buyback

Share buyback is when a company repurchases its own stock from shareholders. Corporate stock redemptions are considered by company owners principally for the following reasons: Peace – to silence a troublesome minority stockholder. Obligation – for example, one of your executives is leaving the company and he or she has the legal right to require … Continue reading

Private Equity

The term private equity is a generic expression for investments in equity securities in companies which are not listed in any public stock exchange.  A private equity firm is an investment manager which raises pools of capital, typically in the form of private equity funds to invest. Private equity includes the following forms of investment: … Continue reading