Stock Essay -- Economy

An active investor invests his all resources to determine the fair value of a stock. However, most of the times, he is unable to acquire a piece of information that is not available in the public domain and that information may alter the probability distribution of his investment decision (James Lorie, 1980). In this phenomenon, an active investor may infer the non-public information by considering corporate insiders’ action in their own stock. Many previous studies (e.g., Jaffe, 1974; Finnerty, 1976a, b; Seyhun, 1986, 1988a, b; Rozeff and Zaman, 1988; Lin and Howe, 1990) document that corporate insiders pursue special information and on that special information, not only insiders are able to earn abnormal profits through trading stocks of own firms but also outsiders also able to earn abnormally by merely mimicking their actions. In financial economies literature, these findings have been considered as a violation of market efficiency. The main objective of this study is to determine market reactions around the day of insider trading and the day of announcements on Indian stock market. We are curious to perform our analysis on Indian data because a major chunk of studies on insider trading are concentrated on the U.S data. Therefore, the analysis of India insider trading data provides an independent outcome to compare with previous studies’ results. Besides, there are enough differences between the US and India market, which indicate that the results of these studies may not be robust in Asia or emerging markets. First difference, the ownership structure of emerging markets’ firms is more concentrated than developed markets’ firms (La Porta et al, 1999). For example, La Porta et al (1998) find that in the Indian firm, the top th... ... to price ratio and size effects of approximately 9% per annum in market model error term. Moreover, Finnerty (1976) finds that insiders most likely to buy their own stock when a firm is a small size and having low BM ratio compared to other firms whose stocks the average insiders are selling. If insiders’ buy tend to be concentrated in small size and low BM firms, the abnormal returns of insider trading information that are calculated by the market model may be significantly differ from zero in the absence of special information. In this paper, we calculate adjusted abnormal returns of insider trading that take into account the size and BM ratio effects. In this methodology, we argue that when we match the firm of insider trading with similar size and BM ratio portfolio, and then adjusted abnormal returns will be originated because of the special information.

Impact of Technology on Our Society Essay

When we speak of the impact of technology on society, we always talk about the positive effects of technology and about how technology has made life easy. We talk about the Internet as an information resource and a communication platform and conveniently ignore the fact that an overexposure to it leads to Internet addiction. We often discuss how technology has made life easy but easily forget that it has made us overly dependent on it. Have you thought of the impact of technology from this point of view? I am sure, most of you haven’t. Let us look at this aspect of technology here. Think of the days when there were no computers and no modern means of transport. Human life was highly restricted due to the unavailability of technological applications. Daily life involved a lot of physical activity. Life of the common man was not as luxurious as that of modern times, but he was more active. Exercise was integrated into routine physical activities. It was contrary to the sedentary lifestyle of today, which leaves no time for exercise and fills days with inactivity and laze. Today we don’t want to, and thanks to technology, don’t even need to, walk, move around or exert physically to get things done. We have the world is at our fingertips. We think of technology as a boon to society. I am afraid; it’s not completely a boon. The Internet has bred many unethical practices like hacking, spamming and phishing. Internet crime is on the rise. The Internet, being an open platform lacks regulation. There is no regulation on the content displayed on websites. Internet gambling has become an addiction for many. Overexposure to the Internet has taken its toll. In this virtual world, you can be who you are not, you can be virtually living even after you die. Isn’t this weird? Children are spending all their time playing online and less or almost no time playing on the ground. Youngsters are spending most of their time social networking, missing on the joys of real social life. Think of the days when there were no online messengers, no emails and no cell phones. Indeed cellular technology made it possible for us to communicate over wireless media. Web communication facilities have worked wonders in speeding long-distance communication. On the other hand, they have deprived mankind of the warmth of personal contact. Emails replaced handwritten letters and communication lost its personal touch. With the means of communication so easily accessible, that magic in waiting to reach someone and the excitement that followed have vanished. Moreover, we have become excessively dependent on technology. Is so much of dependency good? Is it right to rely on machines to such an extent? Is it right to depend on computers rather than relying on human intellect? Computer technology and robotics are trying to substitute for human intellect. With the fast advancing technology, we have started harnessing artificial intelligence in many fields. Where is the digital divide going to take us? How is our ‘tomorrow’ going to be? ‘Machines replacing human beings’ does not portray a rosy picture, does it? It can lead to serious issues like unemployment and crime. An excessive use of machines in every field can result in an under-utilization of human brains. Over time, we may even lose our intellectual abilities. You know of the declining mathematical abilities in children due to use of calculators since school, don’t you? The impact of technology on society is deep. It is both positive and negative. Technology has largely influenced every aspect of living. It has made life easy, but so easy that it may lose its charm one day. One can cherish an accomplishment only if it comes after effort. But everything has become so easily available due to technology that it has lost its value. There is a certain kind of enjoyment in achieving things after striving for them. But with everything a few clicks away, there is no striving, there’s only striking. With the developments in technology, we may be able to enjoy all the pricey luxuries in life but at the cost of losing its priceless joys.

The Hidden Cost Of Being African American - 1253 Words

In Thomas Shapiro’s â€Å"The Hidden Cost of Being African American†, Shapiro goes in depth on how wealth in America is disproportionately dispersed between different nationalities. Mainly between Caucasians and African Americans. Shapiro has helped paint the image of wealth inequality and has shown how this is even more staggering than the wage gap between African Americans and Caucasians. Some of the theories he indirectly uses in his book and that I will be exemplifying are generational wealth and support systems, education, and the idea of how poverty only begets more poverty. In Shapiro’s book, he interviews two, forty year old mothers. I will use them for my analysis. One of the mother’s names is Vivian Arrora. She is a single, African American mother of a teenage boy and twin children. She grew up in Watts which is a very poor section of L.A. She no longer wanted to live in this dangerous area so she sent herself through school and got her degree ac crued a rather large sum of debt. Having been on government assistance this whole time, she began her search for a real job. After several days with no luck, one of her friends tells her of temp agencies. We went to the temp agency on a Wednesday. It was raining, and we just kept on. We kept on going, and the rain didn’t stop us†¦. I went in on a Wednesday, and they called me that Thursday and told me to start work that Monday. And I’ve been working ever since. And I’m like: Am I really, really ready to go to work? Mentally? ButShow MoreRelatedLeslie Savan’s Essay798 Words   |  4 PagesStolen Treasure In Leslie Savan’s essay, â€Å"What’s Black, Then White, and Said All Over?,† Savan talks about the â€Å"hidden costs†(381) and benefits of the black language in America. 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