Stock Market and Investment Articles
Analysis Report
The first analyzed article is “Predicting the
direction of stock market index movement
using an optimized artificial neural network
model” by Mingyue Qiu and Yu Song. The
authors assume that predicting the exact
daily price of the stock market demands an
accurate and comprehensive analysis of
various aspects influencing this factor, such
as political stability, the global economy, and
traders’ expectations (Qiu & Song, 2016).
The use of innovative technologies, such as
the optimized artificial neural network
model (ANN), can improve the accuracy of
the daily stock market index prediction (Qiu
& Song, 2016). The authors suggest using
genetic algorithms (GA) to improve the
effectiveness of the process and verify the
investigated phenomenon by integrating a
new hybrid GA-ANN model (Qiu & Song,
2016). This method is critical for the sphere
as it can help to improve the prediction
process.
The leading objective of the study is to
improve the prediction accuracy by using the
ANN model and test the GA algorithm
regarding its capability to offer better
results. Comparing their method with the
previous studies, they conclude that the
hybrid GA-ANN model can be viewed as a
potentially advantageous method to
increase prediction accuracy and acquire
better results (Qiu & Song, 2016). At the
same time, the authors state that new
upgrades are possible through combining
input indicators, using methods different
from GA, and specific investment strategies
(Qiu & Song, 2016). In such a way, the article
outlines how neural networks and AI can
alter the sphere of finances.
The article shows that AI can be widely used
in the financial sphere. Using artificial
networks such as the described one,
specialists acquire new tools for forecasting
and planning, which is vital for outcomes.
The discussed GA-ANN model can help to
introduce the positive change in the stock
market as the more accurate indexes will add
opportunities for decision-making and
better financial operations. The article
proves that AI is the future of the financial
sector as it offers a limitless number of
chances to consider numerous factors
affecting the current showings and calculate
them to avoid mistakes or poor predictions.
The second article is “A novel artificial
autonomous system for supporting
investment decisions using a Big Five model
approach” by Daniel Cabrera-Paniagua and
Rolando Rubilar-Torrealba. The authors
state that artificial autonomous systems
(AAS) are widely used in various spheres to
improve decision-making processes and
attain better results (Cabrera-Paniagua &
Rubilar-Torrealba, 2021). Cabrera-Paniagua
and Rubilar-Torrealba (2021) offer the
design of the AAS resting on the Big Five
model, implying five essential personality
profiles, such as openness,
conscientiousness, extraversion,
agreeableness, and neuroticism. It can be
viewed as an innovative approach as existing
systems do not support specific decisions
regarding the Big Five model (Cabrera-
Paniagua & Rubilar-Torrealba, 2021). The
paper investigates this framework and its
ability to guarantee better results. The
central goal is to introduce an AAS for
making investment decisions regarding the
market conditions and policy function
adapting over time (Cabrera-Paniagua &
Rubilar-Torrealba, 2021). The latter
considers the market conditions and the Big
Five model profile (Cabrera-Paniagua &
Rubilar-Torrealba, 2021). The study shows
that including personality traits in decision-
making can lead to enhanced outcomes.
The given research paper is also linked to
using AI in the financial sphere. Autonomous
systems are becoming an advantageous
method to improve the decision-making
process because of their ability to consider
specific features, such as the Big Five model,
and how they might influence the final
result. Additionally, by integrating innovative
aspects to the already existing models, it is
possible to promote better outcomes and
ensure that specific strategies employed by
specialists working in the sphere will
demonstrate higher accuracy of forecasting
due to their focus on a higher number of
variables.
The third article also revolves around using
AI in the financial sector. Lee et al. (2018)
introduce the financial network indicators
applied to global stock market investment
strategies. The researchers try to construct
methods for global portfolio management by
using AI and specific indicators, which is
highly demanded in various practical fields
(Lee et al., 2018). Applying the machine
learning techniques considering stock price
indices, it is possible to acquire a better
vision of the current market’s state and
increase the accuracy of predictions and
effectiveness of various operations (Lee et
al., 2018). Such indexes can also be viewed
as performance enhancers for regional
allocation strategies (Lee et al., 2018). It
means that there is much space for
additional improvement.
Moreover, the authors emphasize the
importance of using machine learning to
predict various sphere’s alterations. Using
the global stock indices of 10 countries and
other showings, it is possible to build a global
stock portfolio strategy characterized by the
increased accuracy of data and better
forecasting (Lee et al., 2018). It means that
the study proves the effectiveness of using AI
and machine learning techniques in the
financial sector as these technologies
promote better outcomes and help to
minimize mistakes or avoid using false data.
The selected paper also proves AI’s
significant role in the modern financial field.
Portfolio management is one of the vital
tasks specialists face today. Its accuracy
influences results and the majority of
operations in the sphere. Thus, applying the
machine learning techniques, it is possible to
increase the accuracy of predictions and
ensure the absence of poor data or its
misinterpretations. Under these conditions,
the fast evolution of AI is critical for the
development of the sphere and the
emergence of new tools that will be used by
specialists to attain existing goals and reduce
the number of critical failures.
References
Cabrera-Paniagua, D., & Rubilar-Torrealba,
R. (2021). A novel artificial autonomous
system for supporting investment decisions
using a Big Five model approach.Engineering
Applications of Artificial Intelligence, 98,
104107. Web.
Lee, T., Cho, J., Kwon, D., & Sohn, S.
(2019). Global stock market investment
strategies based on financial network
indicators using machine learning
techniques.Expert Systems with
Applications, 117(1), 228-242. Web.
Qiu, M., & Song, Y. (2016). Predicting the
direction of stock market index movement
using an optimized artificial neural network
model. PLoS ONE, 11(5), e0155133. Web.
Making Capital Investment Decisions Essay
In the modern business context, investment
and long-term planning are rightfully
perceived as key to the company’s success.
Indeed, a profitable allocation of the
enterprise’s finance may either double or
negatively affect its assets. The process of
meticulous planning of the investment
allocation and potential outcomes is known
as a capital investment decision. If
previously, this process could be focused
solely on the concept of profitability and the
benefit a company can receive from capital
asset procurement, today’s capital
investment decisions are rather focused on
the notion of Corporate Social Responsibility
(CSR) and such social phenomena as
sustainability and environmental safety.
Thus, in a recent article by The Wall Street
Journal (2021), the concept of investing
based on environmental, social, and
governance factors (ESG) is addressed as one
of the most relevant spheres of capital
investment decisions in the market. Thus,
according to the article, over the past years,
there has been a shift from conventional
investment to an ESG model of sustainable
and responsible capital allocation and
procurement. However, after discussing this
trend with the experts, it has become
evident that currently, the tendency of
sustainability is widely used as a strategy to
seem more appealing to investors. As a
result, a company that prides itself in
sustainable practices is more likely to receive
capital from the investors, so many
companies create faux sustainability
initiatives and “greenwash” the investors’
money. In order to avoid these traps, the
company’s capital investment decisions
should be made based on real data and
socially responsible initiatives. In such a way,
these investments are likely to initiate
sustainable changes in the environment,
leading to beneficial long-term outcomes for
businesses.
Improving the School’s Funding Essay
Abstract
Every independent institution’s survival
depends on the incoming funds from the
investors. Obviously, a single institution has
to compete with other competitors in the
field of free investments that exist within a
system that pursues primarily liberal values.
The fact of receiving investments from a
single source is a show of trust from that very
source.
Trust embodies the confidence that lies in
your performance, effectiveness, and, more
importantly, superiority among the rest, as
well as the future growth the institution can
offer. If one falls short in terms of its
performance compared to the rest on the
market, this faith will vanish very quickly.
Along with it will disappear, the money it
brought and the business that inevitably
depends on it will come to an end. Recently,
unexpected news has been discovered by
one of the insiders. The school has learned
that it is going to have its funds cut by 10
percent in the nearest future. The school’s
administration had demanded that the
people responsible for the actual policies
take measures in order to identify the
reasons for such dramatic changes to the
budget income. This paper will present the
analysis of the current situation, as it needs
to be resolved in the shortest time to avoid
the negative consequences of the current
state.
Introduction
As the school is facing its direst times due to
the cut in funds that have been announced
recently, the system has to undergo specific
changes in order to ensure the survival of our
institution. One of the possible reasons for
the investors to pull back their investments
could be the fact that our school staff is no
longer capable of providing their students
with the proper level of education. This lack
of professionalism is due to the inability to
function as a whole group of workers and
psychological pressure applied to all staff
members, which can be unsurprising,
knowing the work they have to handle. As a
means to better the circumstances the
school is inevitably going to find itself in, the
council has prepared an analysis of the
actual situation of matters. Alongside, the
reader will find the list of possible solutions
that are believed to lead to improvements in
the working environment and, therefore,
their efforts’ overall results. This information
will be presented as a new school policy that
the administration should apply to all staff
activity spheres.
Changes Regarding the Staff
First and foremost, it should be clear what
attracts the investors’ attention that the
school is currently lacking. Indeed, as the
primary function of any education
organization is the ability to give knowledge
to its students, the most important quality of
any school is the professional personnel that
forms the essence of the organization. And
logically, since the investors are pulling out
their funds from the school budget, the staff
must undergo drastic changes from the very
roots of the organization. The following
paragraphs will describe the critical
adjustments to the system and the full
description of how it benefits this school. It
must be obvious that the amount of
experience of working in one single position
directly improves the professional
performance of an individual.
Therefore, one of the responsibilities of the
HR segment of the school must be to ensure
a decrease in staff turnover. In order for this
to be achieved, it will have to take control of
the administrative support of its employees.
Administrative support may be the single
most critical influence out of all further
mentioned requirements in the success of
staff retention (Hylton & Vu, 2019). As it
offers the staff all sorts of support, medical,
psychological, and financial, it conveys the
message that these workers are essential to
the working place and that the
administration itself values them a lot. This
addition will also bring satisfaction to the
coworkers, that will know each other much
better and will be able to arrange to help one
another. The feeling of importance to the
organization and other members will also
lower, if not exclude, the probability of
burnout among the staff (O’Brennan et al.,
2017). This reason alone causes many of
them to quit within the first three years of
work, which worsens not only the essential
aspects of statistics crucial for investors to
make the final decision on what to invest in.
Along with the previously mentioned points,
it is crucial to allow both the students and
the professor to have a feedback channel
through which they can leave their thoughts
to the upper management. This way will
exclude the likelihood of miscommunication
between the two groups. Often, due to the
difference in age and social circles, the
students cannot adequately express their
thoughts and wishes, which negatively
affects the performance of their professors.
The teaching staff can not engage their
students in the practical process of studying
and therefore remain frustrated (Clark,
2018), all while their students disobey the
rules due to little to no interest. It is
important to remember that the practical
aspect of teaching is the key to satisfying
performance from the staff (Hoben et al.,
2020). Overall, the school’s system must
become more human-oriented in order to
increase the quality of its services.
Changes Regarding the Funds
Dissemination
After this stage and the increase in the
incoming funds from the investment
sources, the school management must
ensure that the money dedicated to the
specific parts of the institution will serve its
purposes. Transparency is often viewed as
crucial to management accountability, as the
upper workers of any sphere set the bar for
all the employees beneath them (Barry, &
DiGiuseppe, 2019). The entire school staff
must see the way the system works so they
will be able to follow its policies. In order for
that to happen, a more transparent method
of asset allocation must be created. An open
network of school expenses will allow the
investor to perceive the way their
investments are used in order to better the
organization and therefore attract even
more assets due to its superiority on the
market of education.
It goes without saying that such change will
put great responsibility on the shoulders of
the higher management of the school,
which, however, should not be avoided. The
transparency with which it will undoubtedly
provide the institution will put faith in what
the staff is doing and make them appear
more honest with the funders (Ardigó &
Zúñiga, 2019). More open relations with the
investors about what is happening in the
organization in which they invest their funds
will also attract more interest among the
investment sources. The school
administration must understand the
importance of such radical measures since
they are most certainly needed. The
education system must change and become
more modern than it is now. In the general
public’s eyes, investments in schools are
usually left unnoticed compared to other
economic sectors such as, for example,
healthcare (Jack, 2018). It only implies that
school organizations need to take more
radical measures to compete for possible
investments.
Conclusion
To conclude, the school can recover the lost
funds only by making a change to all of the
described aspects of its organization. As the
system itself requires backbreaking work to
endure, the administration must take
complete control of the change and perform
the needed emergent actions that will help
them attract the assets to their business
from the free market. The changes must
include the different treatment of the
workers and the relations among them,
which will make them find themselves
working in more “human” surroundings with
their colleagues that share their interests
and enjoy what they are doing. The
professors will then project this attitude on
their students, that will similarly feel more
invested in the process of education. This will
not only bring the school better reviews and
better opinions among the potential
newcomers. All things combined may help
the institute get the lost investors back and
attract many new ones, as the school will
stand out among the rest of the competitors.
It is safe to assume that the rest of the
schools will soon be facing the same
situation and will either take similar
measures or continue losing their popularity
both among the general public and
investment sources. Therefore, it is now vital
to take such steps toward improving the
school and making it more competitive in the
modern arena of investors’ funds.
References
Ardigó, I., & Zúñiga, N. (2019). Corporate
transparency: Overview of issues and
literature review. Transparency
International. Web.
Barry, C., & DiGiuseppe, M. (2019).
Transparency, Risk, and FDI. Political
Research Quarterly, 72(1), 132-146. Web.
Clark, Lauren. (2018). Research-based
education: Engaging staff and students in
praxis. In Tong V., Standen A., & Sotiriou M.
(Eds.), Shaping Higher Education with
Students: Ways to Connect Research and
Teaching (pp. 87-96). UCL Press.
Hylton, N., & Vu, J. (2019). Creating a work
environment that supports staff
retention. YC Young Children, 74(4), 34-38.
Web.
Hoben, M., Ginsburg, L. R., Easterbrook, A.,
Norton, P., Anderson, R. A., Andersen, E. A.,
Bostrom, A.-M., Cranley, L. A., Lanham, H. J.,
Weeks, L. E., Cummings, G. G., Holroyd-
Leduc, J. M., Squires, J. E., Wagg, A. S., &
Estarbrooks, C. A. (2020). Comparing effects
of two higher intensity feedback
interventions with simple feedback on
improving staff communication in nursing
homes—the INFORM cluster-randomized
controlled trial. Implementation Science,
15. Web.
St. Lucia: Report for Foreign Investors
Research Paper
Executive Summary
The present research paper delivers an
overview of Saint Lucia that will be beneficial
for foreign investors who would like to start
a business in that country. The paper
addresses the cultural, economic, and
political peculiarities of the country, as well
as the potential challenges business people
may face when leading the business. The
paper also contains the historical
background of the country that explains the
majority of its cultural characteristics.
The report provides the readers with the
current information concerning the
economic growth and business potential
Saint Lucia currently possesses. It reveals
such economic characteristics as the
country’s GDP, investment profits,
employment, unemployment rate, and the
data on the export and import of goods and
services. Another classification the report
contains concerns the Saint Lucian model of
cultural development that will allow the
potential investors to establish the most
effective and less harmful ways to promote
their business in the country. It may also help
develop the business strategy regarding the
peculiarities of the national culture and
organize work in the most effective way.
Introduction
St. Lucia is an island in the Caribbean sea that
attracts not only by its nature but also
opportunities for business development. The
country is situated on Saint Lucia island
between St. Vincent and Martinique. It is
bathed by the Caribbean Sea and by the
Atlantic Ocean. The country’s square is 616
sq. kilometers, and more than 180 thousand
people populate it. The native population of
the island is almost gone (Dalphins, 2019).
Nowadays, there live mostly people from
Africa or India, and the European population
constitutes no more than one percent of all
the people who live there. The main religion
of the country is Catholicism, as almost sixty
percent of the population confess to it. The
capital of Saint Lucia is Castries. The official
language is English, but a lot of people speak
French.
Background and Culture
St. Lucia was discovered by Christopher
Columbus at the end of 1502. Up until 1814,
the country was a disputable territory of
England and France. However, later the
island has become the object of British
jurisdiction (Dalphins, 2019). St. Lucia
became an independent estate in February
1979. However, it remains a member of the
British Commonwealth. Saint Lucia is a
parliament monarchy, so the country’s head
is the British Queen, represented by
Governor-General. Since the country is not
very famous, its culture is not so well-known
worldwide. One of the most prominent
citizens of Saint Lucia, one can single out only
Derek Walcott. He was a poet, dramatist,
and Nobel Prize winner in literature in 1992.
The country’s location and climate enable
the government to promote tourism, which
is one of the main sources of revenue for
Saint Lucia. Then go the agricultural sphere
and construction industry (“Saint Lucia:
Economy”, 2021). The realty market in Saint
Lucia remains the market of consumers. The
majority of the deals are consumer-oriented
since people buy the realty to have rest
there. The majority of the customers are
American and British people.
When comparing the US and Saint Lucia, it is
possible to single out several cultural
similarities. They include the same language
since English is the official language in both
countries. In addition, both the US and Saint
Lucia citizens confess to Christianity. As for
the cultural differences, it should be
mentioned that the US is a republic, and
Saint Lucia is a parliament monarchy. The
cultural values of these two countries are not
very different since both of them were
influenced by Britain during their
development. However, the British influence
on Saint Lucia is more apparent since the
country still has close relationships with
Britain. However, the difference does not
prevent the US and Saint Lucia from mutual
trade since the US is the main export and
import partner of Saint Lucia (Bureau of
Western Hemisphere, 2021). The
cooperation between the two countries is
beneficial for them since it boosts their
economic growth and well-being.
When comparing the two countries
regarding Hofstede’s Model of National
Culture, it is possible to see the economic
differences between the USA and Saint Lucia
more apparently:
Dimension
US
Saint Lucia
Power
distance
Low (Less
than 50
percent)
High (More
than 50
percent)
Individualis
m
Individualisti
c Culture
Collectivisti
c Culture
Masculinity
Masculine
Masculine
Uncertainty
Avoidance
Low
High
Long Term
Orientation
Low
Low
Indulgence
High
High
(“What about the USA?”, 2021).
The most significant dimensions that define
economic growth and potential for further
development is individualism, long or short-
term orientation, and indulgence. They
establish the role of the individual’s
contribution to society’s well-being and
further perspectives on the country’s
economy (“10 minutes with Geert
Hofstede”, n.d.). The most significant
differences between the US and Saint Lucia
concerning these dimensions are mostly the
Individualism dimension. The US is a highly
individualistic culture, and individual values
are more prioritized than collective ones.
The relationships there depend on people’s
personal interests and values and change
together with them. A person’s success in
the USA is closely related to his
achievements and is his own responsibility.
Unlike individualism, collectivistic culture
prioritizes society’s interests over individual
ones. Collectivism is typical of societies with
strict social structure and clear division into
social groups, where everyone has his own
role and responsibilities. The US,
representing individualistic culture,
prioritizes people’s potential, unlike Saint
Lucia, where common values are placed
above individual achievements.
The process of industrialization in Saint Lucia
goes fast since it went away from the
economic model based primarily on
agriculture towards the model that
prioritizes tourism and banking. Though
agriculture still constitutes a significant part
of the country’s economy, the main
revenues to the budget are provided by
tourism (“Saint Lucia: Economy”, 2021). The
country’s government also pays attention to
the sphere of education since school
education is compulsory for children from
five to fifteen years old (Government of Saint
Lucia, 2021). In addition, students have an
opportunity to continue their learning and
enroll in the high education program. Such a
policy in the education sphere enables the
country to prepare a competent and
experienced workforce that will provide
further economic growth of the country.
When speaking about social inequality in
Saint Lucia, it is necessary to mention that
the government targeted the decrease
people’s inequality depending on social
status. Hence, social inequality is rather low
in the country, and the ratio of people’s well-
being constantly grows. The percentage of
employed Saint Lucia citizens increases as
well. Thus, it may be considered that the
country’s economy may be positively
affected by the foreign business initiative
since it will help decrease the ratio of
unemployed people and bring significant
profits to the budget.
Business Environment
Saint Lucia is open for foreign business.
There exists a government program that
brings revenues to the country’s budget due
to giving foreign people an opportunity to
get citizenship in Saint Lucia if they invest in
the country’s economy (Government of Saint
Lucia, 2020). Saint Lucia has growing
business potential since it possesses human
resources. Its business market is not highly
competitive yet, so it will be easier for
investors to promote their business there.
The main concern towards Foreign Direct
Investment in Saint Lucia regards the fact
that the country does not reveal information
about those who invest in a business there
and get citizenship in Saint Lucia. The
international community does not approve
of such a policy, so potential foreign
investors risk facing either sanctions or even
international community prosecution,
leading to loss of money and reputation.
The most important ethical dilemma the US
managers may face while leading the
business in Saint Lucia concerns the culture
of collectivism that is spread in the country.
Since individualism is more typical of US
society than collectivism, it may be difficult
for business people to understand the values
and ideals Saint Lucian society promotes.
That is why they may fail to adequately
implement them into their individualistic
business. When speaking about
communication-related problems the US
managers may face in Saint Lucia, it is
necessary to state that there is almost no
chance of their emerging. Both Saint Lucia
and the US have English as their official
language, so it will be easy for the citizens of
both countries to communicate with each
other (Government of Saint Lucia, 2020).
However, since the second language of Saint
Lucia is French, it will be beneficial for
foreign investors to know it.
Saint Lucia did not face any trade sanctions
in the past, so it is quite safe to lead the
business in that country. The only thing that
foreign business people should take into
account regards the fact that they should
carefully organize their documentation in
order to not face international community
sanctions against their company. The Saint
Lucian government does not preclude other
countries’ initiatives to start a business in
their country (Government of Saint Lucia,
2020). On the contrary, it highly approves of
their ideas and supports them, since
international business may boost the
country’s economic growth, which is
beneficial for it.
It is necessary to regard the country’s
economic statistics data before starting a
business there. Thus, before investing
money in business in Saint Lucia, it is
necessary to assess:
Category
Numbers
GDP (Nominal)
$5.730 billion
(2019)
Investment
$1.223 billion
(2019)
Unemployment Rate
23,5% (2016)
Total Employment
82,95% (2016)
Imports of Goods and
Services
$2.513 billion
(2019)
Exports of Goods and
Services
$3.105 billion
(2019)
(“Saint Lucia – economic indicators”, 2021).
There is one more aspect to address when
speaking about the economy of Saint Lucia.
Its foreign policy regards economic
cooperation with other countries. Thus, it is
currently a member of such organizations as
the Organization of Eastern Caribbean States
and the Caribbean Community and Common
Market (CARICOM) (Bureau of Western
Hemisphere, 2021). Since 2013 the country
is also a member of the Bolivarian Alliance
for the Peoples of Our America (ALBA). It is
necessary to stress that the US and Saint
Lucia also participate in the same
organizations such as the UN, IMF, or WTO,
which facilitates their cooperation.
Conclusion
To conclude, it is necessary to mention that
the economic sphere of Saint Lucia is
developing rather quickly. Such growth is
caused by internal policy and foreign
investments, which the country’s
government highly approves and supports.
Hence, it will be beneficial for business
people from other countries to establish
their businesses in Saint Lucia because it will
be easier to make revenues there. However,
they should carefully organize their
documents and regard all the possible risks
in order to avoid international prosecution.
References
Bureau of Western Hemisphere Affairs.
(2021). US relations with Saint Lucia. Web.
Dalphins, M. (2019). History and language in
St Lucia in 1654-1915. Lulu.
Government of Saint Lucia. (2020). News for
businesses. Web.
Government of Saint Lucia. (2021). News for
citizens/residents. Web.
Observations in Brinson’s “The Future of
Investment Management” Essay
Considering the past thirty-five years and at
present, Brinson has produced six
speculations and observations in the article,
“The Future of Investment Management.” In
the first observation, Brinson states that the
right portfolio for any investor is an
internationally constructed portfolio, with a
difference between the financial and
currency exposure (2005).
The article proposes that venture capitalists
with an appetite for low levels of risk and
volatility may best improve their outcomes
by owning a mixture of worldwide securities
as well as current cash. In the future, asset
markets will increasingly look like currency
markets, whereby they will transact over 24-
hour periods without defined closing and
opening prices. While trading is mainly
focused on short-term changes in prices,
which take place for different reasons,
investing refers to the anticipated economic
cash flows from business operations that
eventually regulate the value of an
investment.
Moreover, the model inputs reflect on the
future primary expectations, which are
irrational. One should therefore
differentiate between the reported and
operating profits. The former can be suitable
for a single organization whose past reports
are devoid of allowances and write-offs.
Careless assumptions force capitalists to
conclude from the models erroneously, and
this is true for both individual organizations
and markets in general. On the other hand,
in any case, for a firm that had continuous
adjustments to reported revenues, no single
analyst would insist on using it as a guide to
measuring the current valuation of an
enterprise.
If historical returns from markets are
properly calibrated, they can form a basis for
setting future expectations. The current
financial parameters precisely propose that
the actual returns from mixed bonds, stocks,
and real estate in the future are unlikely to
go beyond five percent.
Furthermore, Brinson (2005) proposes that
the rates for investment management shall
decline significantly. The extent of the fee
attached to a particular asset size will be
impacted by increasingly conscious
consumers of the services. In the days to
come, active fee systems will be bifurcated
into one item for passive management.
Performance charges must be applied to
align the investor’s time interval with that of
the director but not to various arbitrary time
segments.
It is also worth noting that the discontinuities
and lumpiness in the market create
opportunities, but at the same time, they
frighten shareholders. Directors and their
customers should go the extra mile to
recognize this feature of markets. In
addition, any successful exploitation of
opportunities demands variable
management of threats by varying a normal
risk tolerance to be in alliance with
opportunities. Brinson (2005) argues that
substantial value may be included through
active investment policies and overextended
horizons that enable a manager to capture
relatively rare abnormalities. Insisting on
outcomes that produce high yields by
harnessing unexploited revenue potential
but are incompatible with the reality of
markets only results in disappointing effects.
The last remark by Brinson (2005) is that the
results from previous achievements are
essentially random noise having no
predictive merit. By looking at the definition,
random noise provides no predictive data;
that is why the past performance history
shows no imminent value. As a result, the
investment department must refrain from
relying on track records for anything apart
from historical cost accounting. As we
advance, investors should spend more effort
and time on a company’s investment
process, philosophy, and individuals than on
previous outcomes. When evaluating
information based on earlier reports,
stockholders use statistically accurate
performance appraisals.
Investing an Imaginary $1,000,000 in
Amazon’s Stocks Essay
Investing $1,000,000 through stocks
Amazon
Investment in common stocks worth $
400,000
The majority of the stock market is made up
of common stocks. Preferred stocks, on the
other hand, have no voting rights and are the
polar opposite of common stock. Typical
stocks provide a dividend and give voting
rights to long-term investors, but they do not
use those rights in most cases (Vinodkumar
& Khalid AlJasser, 2020).
Walt Disney’s investment in ETFs (Exchange
Traded Fund) worth $300,000
Bonds, commodities, indexes, and assets are
all tracked by exchange-traded funds or
ETFs. They are traded on stock markets in the
same way as common stocks. ETFs with a
higher trading volume and cheaper fees than
mutual funds have higher and lower prices
(Vinodkumar & Khalid AlJasser, 2020).
Companies to invest
Blue Chip Stocks Investment of $100,000
Mutual funds investment in intuitive
surgical company-worthy $ 100,000
The reason for investing is that mutual funds
are an excellent method to start building an
investment portfolio. Mutual funds are both
affordable and greatly diversify the risk for
investors
Investment of ETN’S (Exchange Traded
Notes) in Barclays bank worthy $ 100000
ETNs, or exchange-traded notes, are a sort of
debt asset that Barclays Bank first
introduced. They work similarly to exchange-
traded funds in that they are traded on
major stock exchanges. Stock ETNs such as
TVIX and VIX are only two
examples(Vinodkumar & Khalid AlJasser,
2020)
Blue chip stock Investment of $ 100000 in
Google company
Blue-chip stocks include Apple, Google, Intel,
Netflix, and Bank of America, to name a few.
Once invested, they help to grow the
account of the investor. Dividends
compensate for the fact that the price of the
stock has not increased considerably.
Amazon Profile, History, and What They
Produce
Jeff Bezos created Amazon.com to sell books
over the Internet. The website was launched
in 1995 and immediately rose to the top of
the Internet book-related sites. Amazon
aims to provide the World with the Largest
Selection and be the Most Customer-
Centered Company, allowing customers to
find and discover everything they wish to
buy online. Amazon is an e-commerce
platform, which connects buyers,
merchants, and content creators. It sells
items and material that has been purchased
for resale from vendors as well as third-party
sellers. Filmmakers, singers, app developers,
authors, and others can use the website of
the company, which is already branded, to
publish and sell their work (Jackson &
Orebaugh,2018).
Amazon financial information
Amazon experienced a 72% increase in the
operating cash flow, equivalent to $ 66.1
billion in 2019 compared to the previous
ending of December 31. The cash flow
increased by $31 billion, a good profit margin
(Al-Marzooqi & Nobanee 2020).In addition,
based on the analysis, the payments of the
principal are less than the cash flow and
other financial obligations, a growth of
approximately $ 20.3 billion compared to the
previous year when $16.2 billion were
earned.
In the previous year, free cash flow less the
capital financing, repayment of principal,
and all other financing obligations climbed to
$21.4 billion, which was initially $12.5 billion
for December 31, 2019.
By the end of the financial year 2020,
common shares had increased up to 518
million, including shares underlying stock-
based awards, up from 512 million a year
before.
Reasons for choosing Amazon include the
fact that it is the largest online store that is
doing well economically, which is proved by
Amazon’s financial information provided.
References
Al-Marzooqi, M. B., & Nobanee, H. (2020).
Financial analysis of Amazon. SSRN
Electronic Journal. Web.
Vinodkumar, N., & Khalid AlJasser, H.
(2020). Financial evaluation of tadawul all-
share index(TASI) listed stocks using Capital
Asset Pricing Model. Investment
management and financial
innovations, 17(2), 69–75. Web.
