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PAK BENEFIT
The over the counter market is also known as OTC. This denomination is due to the way in which the securities were bought and sold.
Buyers and sellers in the stock exchange agencies used to pass the securities over the counter instead of doing it on the floor of a stock exchange market. Today this use has disappeared.
As an investor, you should know the differences that there exists between the stock exchange markets and the over the counter markets. As said before, the stock exchange market uses a system based on the specialized companies. In the same way, in the over the counter market the specialist companies operate competing between them, but in this case they receive the denomination of market makers.
These societies are stock exchange agencies or financial intermediary agencies that possess existences of securities and orders.
In the over the counter market there is no “site” in which an over the counter company has any control.
While the specialist company operates in a centralized center, the over the counter companies are scattered all over the country and they connect between each other through telephone lines and a central computer.
The stock exchange is an auction market. The securities are bought and sold by a bidding process in which the specialist company acts as auctioneer.
The over the counter market has to be considered as a negotiation market, from the moment in which the stock exchange agent or financial intermediary can call another in order to make a deal instead of having to call all the group; however, some recent changes have leveled even more the field of operations by having to require firm offers of bidding and demanded prices of a determined security from part of each of the counterpart companies.
In the future, the electronic commerce networks could substitute or create alternative markets. Several companies have already asked to the SEC for an authorization to convert into electronic stock exchange markets and to compete directly with other traditional markets. What type of societies go to the over the counter market?
In this market, all types of companies are welcome, no matter their size, due that in these market small and speculative companies and even the largest business groups such as Intel and Microsoft negotiate in it.
This is possible because of the fact that there are different markets that receive different companies according to their liquidity and contracting volume.
There exists no requisites to enter to quote at the over the counter market.
Any security that is not quoted at the stock exchange market and any operation that isn’t done in it can be considered as over the counter.
In fact, this market is not limited to shares and debentures; we could also say that the market of public debt securities, the market of mutual investment funds and other markets, not being tied up with the quotations at the stock exchange market and not having a centralized size for their operations, form part of the over the counter market.
For example, let's say that you purchase a $10,000 CD with an interest rate of 5% compounded annually and a term of one year. At year's end, the CD will have grown to $10,500 ($10,000 * 1.05).
CDs of less than $100,000 are called "small CDs"; CDs for more than $100,000 are called "large CDs" or "jumbo CDs". Almost all large CDs, as well as some small CDs, are negotiable.
Potential Conflicts
Barack Obama’s performance as the world’s most influential political figure will not only be judged on his handling of the economic meltdown at home; the presidency of the world’s leading economy brings with it a decisive role in international affairs.
The rapid economic growth in Russia and China over recent years has intensified nationalism in both countries. Many economic experts warned that such growth was too rapid; the recent economic slump justifies their misgivings with the resultant decline in demand for exports. With reduced demand for their exports, Russia and China have cultivated a more aggressive attitude towards their respective, and less powerful, neighbours.
At the time of writing, Russia’s row with Ukraine over gas prices has reached a deadlock. Unable to reach an agreement, Russia has switched off gas supplies to Ukraine leaving parts of the EU without gas. There is a remote but palpable possibility that if an amicable settlement is not reached, the situation may escalate into a repeat of Russia’s military incursion in Georgia.
Reduced economic prosperity in contrast to her recent good fortune may move China to apply more political pressure over Taiwan and Tibet. Chinese claims to sovereignty over the smaller states and her increasing military power has already strained political relationships in the past.
The Dalai Lama’s withdrawal from political office will not only slow Tibet’s progress but will also leave Tibet more vulnerable to China’s political belligerence and military posturing.
While China is unlikely to launch full-scale military operations against Taiwan or Tibet, it is always possible that her military manoeuvring to reinforce political pressure may escalate to conflict.
As the gulf between the world’s rich and poor widens, new conflicts created and existing ones deepened, it is clear that Barack Obama’s chief concern as President has implications not only at home but also abroad; the growing diplomatic tensions created by Russia and China, and the ferment of unrest in African states caused by economic distress.
Barack Obama’s first year in the presidential seat will be a demanding one, and one by which he will be judged. It is significant that no other President since the war has faced such a daunting task on taking office. The last President to do so in such conditions was Franklin D Roosevelt. So, in an historical context, this is something not many of us have seen in living memory. It is for this reason that the economic prospects for 2009 are intrinsically linked with Barack Obama’s performance as President and the manner in which he and his staff set about negotiating the inevitable pitfalls of an economic crisis both at home and overseas.
While none of us can predict the future with any certainty, there are always precious grounds for hope and the knowledge that after a period of economic upheaval good sense often prevails.
While the US sets the pace of recovery for the west, the situation elsewhere is bleak. Global welfare will suffer as greater economic constraints and weaker currencies force western powers to re-evaluate their obligations to less developed areas. This will lead to a decline in western aid to sub-Saharan Africa, a situation worsened by increased grain prices and population levels in Zimbabwe and other African states. Last year, the World Food Programme needed a cash injection of $5bn in order to feed half the population of Zimbabwe. The outlook this year does not look any more promising.
The world economic crisis could deepen existing conflicts in Somalia, the Democratic Republic of Congo, Zimbabwe and Darfur. The shift of emphasis as many western powers review their priorities will result in reduced peace-keeping missions to areas where armed conflict has already taken hold.
A positive outcome of economic collapse and meteoric inflation in Zimbabwe could be the fall of Robert Mugabe, which would secure a more stable balance of power in Africa as a whole.
The US Economy
The US economy will recover quicker than other western economies as more investors taking a cautious attitude to risk will turn to US stock markets as safer havens for their investments. The financial markets may receive a short-term boost when Barack Obama takes office, but the ensuing recovery will be gradual, while full recovery is not expected until after the summer.
The investment and hedge-fund industries will take longer to recover, with many funds falling victim to bankruptcy, many as a result of the $50bn Bernie Madoff scandal. This slower pace of recovery is compounded by the high level of leverage (difference in money lent to a fund and the fund’s equity) that characterized market trends during the ten years preceding the credit crunch last year.
World Economic Outlook 2009
In a climate of uncertainty it is difficult to make firm predictions for the future. But prevailing economic conditions and expert analysis can provide vital indicators for an assessment of the world’s political and economic prospects in 2009.
Despite the dangers inherent in forecasting future trends, one thing we can be sure of is that the prospects for 2009 will be defined largely by America’s capacity to recover from the economic slump. The key factor here will be Barack Obama’s inauguration as President at the end of January amid the biggest economic downturn since the Great Depression of the 1930s, and specifically his ability to steer America into calmer economic waters.
The questions that remain, however, are how long this recovery will take and how it will affect the balance of power on the world political stage.
10 Most-Traded Stocks
we present to you the most heavily traded stocks of fall 2008. As of Dec. 12, 2008 (the end of the last game window), the top 10 most popular stocks were:
The Stock Market Game's Top 10 Most-Traded Stocks of Fall 2008Company | Ticker | Trades | Volume | Price 9/22 | Price 12/12 | % Gain or Loss | |
1. | Apple | AAPL | 20,148 | 3,657,083 | 166.19 | 98.27 | -40.88 |
2. | WalMart | WMT | 11,026 | 2,277,790 | 59.39 | 54.63 | -8 |
3. | McDonald’s | MCD | 7,908 | 1,600,447 | 62.36 | 60.59 | -2.84 |
4. | Microsoft | MSFT | 7,609 | 2,108,448 | 26.92 | 19.36 | -28.08 |
5. | Nike | NKE | 7,364 | 1,437,147 | 60.66 | 49.37 | -18.61 |
6. | General Electric | GE | 4,529 | 1,635,395 | 28.15 | 17.11 | -39.22 |
7. | Yahoo | YHOO | 4,074 | 1,447,070 | 18.75 | 13.15 | -29.87 |
8. | General Motors | GM | 3,204 | 2,647,889 | 10.65 | 3.94 | -63 |
9. | Citigroup | C | 2,396 | 2,005,209 | 18.87 | 7.7 | -59.19 |
10. | Wachovia | WB | 1,537 | 1,857,970 | 16.49 | 5.29 | -67.92 |
The over the counter market is also known as OTC. This denomination is due to the way in which the securities were bought and sold.
Buyers and sellers in the stock exchange agencies used to pass the securities over the counter instead of doing it on the floor of a stock exchange market. Today this use has disappeared.
As an investor, you should know the differences that there exists between the stock exchange markets and the over the counter markets. As said before, the stock exchange market uses a system based on the specialized companies. In the same way, in the over the counter market the specialist companies operate competing between them, but in this case they receive the denomination of market makers.
These societies are stock exchange agencies or financial intermediary agencies that possess existences of securities and orders.
In the over the counter market there is no “site” in which an over the counter company has any control.
While the specialist company operates in a centralized center, the over the counter companies are scattered all over the country and they connect between each other through telephone lines and a central computer.
The stock exchange is an auction market. The securities are bought and sold by a bidding process in which the specialist company acts as auctioneer.
The over the counter market has to be considered as a negotiation market, from the moment in which the stock exchange agent or financial intermediary can call another in order to make a deal instead of having to call all the group; however, some recent changes have leveled even more the field of operations by having to require firm offers of bidding and demanded prices of a determined security from part of each of the counterpart companies.
In the future, the electronic commerce networks could substitute or create alternative markets. Several companies have already asked to the SEC for an authorization to convert into electronic stock exchange markets and to compete directly with other traditional markets. What type of societies go to the over the counter market?
In this market, all types of companies are welcome, no matter their size, due that in these market small and speculative companies and even the largest business groups such as Intel and Microsoft negotiate in it.
This is possible because of the fact that there are different markets that receive different companies according to their liquidity and contracting volume.
There exists no requisites to enter to quote at the over the counter market.
Any security that is not quoted at the stock exchange market and any operation that isn’t done in it can be considered as over the counter.
In fact, this market is not limited to shares and debentures; we could also say that the market of public debt securities, the market of mutual investment funds and other markets, not being tied up with the quotations at the stock exchange market and not having a centralized size for their operations, form part of the over the counter market.
A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate and can be issued in any denomination. CDs are generally issued by commercial banks and are insured by the FDIC. The term of a CD generally ranges from one month to five years.
A certificate of deposit is a promissory note issued by a bank. It is a time deposit that restricts holders from withdrawing funds on demand. Although it is still possible to withdraw the money, this action will often incur a penalty. For example, let's say that you purchase a $10,000 CD with an interest rate of 5% compounded annually and a term of one year. At year's end, the CD will have grown to $10,500 ($10,000 * 1.05).
CDs of less than $100,000 are called "small CDs"; CDs for more than $100,000 are called "large CDs" or "jumbo CDs". Almost all large CDs, as well as some small CDs, are negotiable.
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