Abstracts » Business, international

Another kind of web

Article Abstract:

Exchange-traded funds (ETFS) have become popular in the US, and they offer continuous dealing and can be purchased on the margin. They have some similarities with open-ended funds, and trades can be settled with underlying stocks instead of cash. They are seen as tax-efficient and flexible by many US investors, who may not fully understand this investment vehicle. They reinforce a trend toward indexing, and blur lines dividing wholesale and retail investors.

Index funds

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Market timers

Article Abstract:

Mutual funds were attractive as a way for investors to take part in a bull market. Investors have not panicked, despite stock price falls, but this could change if further falls occur. Strong brands may be able to perform better in a market downturn, and fund managers are seeking to promote brand awareness, as well as educate investors. Index funds may suffer in a general downturn, and have been less keen on advertising. A strong increase in advertising spending could be interpreted as an overreaction.

Securities and Commodity Exchanges, Security and commodity exchanges, Securities Exchanges, Management, Exchanges, Mutual funds

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The risk business

Article Abstract:

The turmoil in world financial markets has been attributed to hedge funds, but this is not the case. The problems of Long-Term Capital Management have been cited as an example of the dangers of hedge funds, but this is not a typical hedge fund. Hedge funds follow a range of strategies. Few are leveraged to the extent of Long-Term Capital Management. There is a need to examine the risk management strategies of banks, which have lost more than hedge funds in emerging markets.

Commercial Banks, Commercial Banking, Banking industry, Column, Hedge funds

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