In this video, you will learn about the black Tuesday event that led to the great depression in the financial markets. #blacktuesday #blackmonday #wallstreetmojo #greatdepression #stockmarketcrash Chapters: 00:00 – Introduction 00:44 – What is black Tuesday? 01:31 – Causes of black Tuesday 02:49 – Effects of black Tuesday 04:27 – Conclusion What is black Tuesday? October 29th, 1929, is often referred to as Black Tuesday. This is because it was the day when the Dow Jones Industrial Average fell almost 12% in a single day. This sudden crash further affected the markets as by mid-November, the DJIA lost 50% of its value, and by the summer of 1932, the index was trading at around 90% below the peak. Causes of black Tuesday From 1921, the DJIA started the post-war advancement at $63.9, and till black Monday and Tuesday, the index rose almost 400%. In mid-1929, the Fed warned that too much speculation was happening in the financial markets, resulting in a minor crash as investors began selling. Investors realized that the bull run was coming to an end, and they started selling. The selling intensified, causing a snowball effect that resulted in a full-blown market crash. (Explained in detail in the video) Effects of Black Tuesday The Black Tuesday crash became a bad omen for the financial markets as it resulted in a massive crash and restricted economic activities. It is said that the Black Tuesday led to the great depression, which was the worst period in the history of the financial markets. Over the years, the unemployment rate increased from 3% to 25%, and the output of the US decreased by 30%. The great depression went on for 10 long years, and it wasn’t until November 1954 that the markets reached the pre-crash heights. (Explained in detail in the video) This was all about the Black Tuesday event. Don’t forget to subscribe to the channel and like the video. ========================================================================== Subscribe to Our Channel – Youtube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/ Facebook ► https://www.facebook.com/wallstreetmojo Instagram ► https://www.instagram.com/wallstreetmojoofficial/ Twitter ► https://twitter.com/wallstreetmojo
In this video I’m going to show you how to calculate the internal rate of return for a project in Excel. So I’ve got 6 projects here. For each project, there’s a single cash outflow at the beginning of the project (year 0). This is followed by a series of cash inflows. Now to calculate the IRR of a project, just type =IRR and highlight the series of cash flows. Excel gives you the option to guess the IRR; if you don’t enter anything, it guesses 0.1 (or 10%) until it finds the rate that makes the project’s NPV equal to zero. Now you can see that the IRR for project 1 is 6.73%. This is the time-adjusted, annual rate of return for that project. Dragging the fill handle to the right shows you the IRR for each of the other projects. Now if the company’s hurdle rate was 20%, you would only accept projects 5 and 6. — Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world. — SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • A 44-PAGE GUIDE TO U.S. TAXATION • A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS • MANY MORE FREE PDF GUIDES AND SPREADSHEETS * http://eepurl.com/dIaa5z — SUPPORT EDSPIRA ON PATREON *https://www.patreon.com/prof_mclaughlin — GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/ * https://michaelmclaughlin.com
In this video, you will learn about black swan events. #blackswanevent #nassimtaleb #wallstreetmojo #fooledbyrandomness #finance Chapters: 00:00 – Introduction 00:50 – What is black swan event? 01:51 – Features of black swan events 02:41 – Examples 03:11 – Risk management strategies 04:33 – Conclusion What is black swan event? A black swan event is an unpredictable incident that occurs as a shock and can have positive or negative consequences. The term was coined by Nassim Nicholas Taleb, a professor at New York University, also an ex Wallstreet trader in his books, Fooled by Randomness and The Black Swan. (Explained in detail in the video) Features of black swan events In his books, Nassim Taleb has laid down some attributes of such black swan events, and the most obvious one is that such events are rare and unpredictable, and no one imagined it could happen. It is considered that such events usually are catastrophic. It has a high economic impact that must be handled with great caution. But this requires a certain level of skill. Examples The pandemic that we all had to fight through was surely a black swan event. Who would’ve really thought that the world would get shut for a year or two just because of a virus that spread from bats? Even the 2008 financial crisis was a black swan event. Risk management strategies If you are a trader or an investor, you should already know that risk management is absolutely necessary, or else you will lose money in the long run. You can use two strategies to manage risk during black swan events: barbell strategy and portfolio diversification. (Explained in detail in the video) This was all about black swan event. Subscribe to the channel and give this video a like. ========================================================================== Subscribe to Our Channel – Youtube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/ Facebook ► https://www.facebook.com/wallstreetmojo Instagram ► https://www.instagram.com/wallstreetmojoofficial/ Twitter ► https://twitter.com/wallstreetmojo
For many companies, property, plant, and equipment (PP&E) is often a significant line item in the balance sheet. Do you know what’s included in this line item? In this CPE-eligible, eLearning course (1.0 CPE) we discuss the types of assets and costs that should be capitalized as part of PP&E. You will learn about the concept of depreciation, including the inputs needed and the various methodologies available to calculate depreciation in the financial statements. Finally, we cover the difference in accounting and reporting under U.S. GAAP for held-for-sale assets as compared to those assets that are held for use. Take our self-study eLearning course here: https://revolution.gaapdynamics.com/learn/course/internal/view/elearning/26/property-plant-and-equipment Learn more about GAAP Dynamics: https://www.gaapdynamics.com/ Check out our other online courses on the Revolution: https://revolution.gaapdynamics.com/learn/catalog Subscribe to GAAP Dynamics to see more videos like this!
In this video, you will learn about bearish markets and how to invest in such markets. #bearishmarket #bear #wallstreetmojo #marketcrash #financialmarkets Chapters: 00:00 – Introduction 00:39 – What does a bearish market mean? 01:41 – Bearish market stages 03:10 – Examples 03:55 – How to invest in a bearish market? 05:25 – Conclusion What does bearish market mean? A bearish market is when the prices of financial assets, be it stocks, bonds, derivatives, commodities, metals, cryptos, etc., fall. Such a type of price movement is called bearish because when a bear attacks, it usually uses its paws to slap down on the prey. A bear market can result in an economic collapse, market crash, business stagnation, reduction in job opportunities, and ultimately layoffs. (Explained in detail in the video) Bearish market stages Recognition Panic Stabilization Anticipation Examples We are in a bearish market that has been going on for some time. 2008 – Housing market crash 2000 – Dotcom bubble crash 1997 – Currency crisis 1987 – Black Monday crisis These are some examples of previous bearish markets. How to invest in a bearish market? Long term investing Risk mitigation Stable assets Diversification This was all about bearish market. Subscribe to the channel, and don’t forget to give this video a like. ========================================================================== Subscribe to Our Channel – Youtube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/ Facebook ► https://www.facebook.com/wallstreetmojo Instagram ► https://www.instagram.com/wallstreetmojoofficial/ Twitter ► https://twitter.com/wallstreetmojo
In this video, you will learn about wire fraud and how to avoid falling for them. #wirefraud #scam#wallstreetmojo #scammers #fraud Chapters: 00:00 – Introduction 00:47 – What is wire fraud? 01:36 – When is a person convicted of wire fraud? 02:25 – Laws on wire fraud 03:04 – Examples 03:49 – How to avoid falling for such scams? 04:45 – Conclusion What is wire fraud? Wire fraud is a federal crime in which a person uses electronic communication to defraud another person. Electronic communication includes phone calls, emails, chat rooms, faxes, etc. The fraudster uses deceptive techniques to gain unlawful and undue benefits from innocent people. (Explained in detail in the video) When is a person convicted of wire fraud? If a fraudster contacts another person, lures them into giving them some money or property and then runs away with it, they will be held liable for wire fraud. But you know what? The scammer can be held liable for wire fraud even if the victim does not face any loss. (Explained in detail in the video) Laws on wire fraud The limitation period for individuals is 5 years, and for financial institutions, it is 10 years. Fines up to $250,000 will be charged for individuals and up to $500,000 for organizations, including jail terms of up to 20 years. If a financial institution is found guilty of the crime, then fines could be charged up to $1 million with a jail term of up to 30 years. Examples There are many examples of fire fraud. For example, there’s the Nigerian prince scam, Saudi prince scam, dating apps scams, etc. How to avoid falling for such scams? The first red flag you should look for is that an unknown person messaging you, out of the blue, with no context, is mostly out there trying to scam you or sell you something. If they ask you for money, just delete the conversation, block the person, and move on. This was all about wire fraud. Subscribe to the channel and give this video a like. ========================================================================== Subscribe to Our Channel – Youtube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/ Facebook ► https://www.facebook.com/wallstreetmojo Instagram ► https://www.instagram.com/wallstreetmojoofficial/ Twitter ► https://twitter.com/wallstreetmojo
In this video I’m going to show you how to use Solver to determine which projects to accept when capital is constrained. So let’s say your company has 20 different projects it could do, and each of these projects has an NPV greater than zero. Now in theory, a company should accept all positive-NPV projects. But here’s the problem: accepting all 20 projects would require an upfront investment of $3.775 million, and the company only has $2.5 million in cash. Thus, we need to choose which of these 20 projects to accept. In short, we need to find the combination of projects that results in the highest total NPV, and Solver can help us do this. — Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world. — SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • A 44-PAGE GUIDE TO U.S. TAXATION • A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS • MANY MORE FREE PDF GUIDES AND SPREADSHEETS * http://eepurl.com/dIaa5z — SUPPORT EDSPIRA ON PATREON *https://www.patreon.com/prof_mclaughlin — GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/ * https://michaelmclaughlin.com
In this video I cover the Accounting & Audit issues with FTX’s Collapse In a nutshell, FTX used its sister company Alameda in these illegal ways:FTX lent Alameda its made-up crypto “FTT”, which Alameda used to borrow money against (free money with a worthless collateral)!Alameda was a major customer of FTX’s FTT token, helping FTX prop up it’s fair market value!!Get 30% discount on the Controller Academy:https://thefincontroller.com/p/controller-academy?coupon_code=30OFFCOURSE&product_id=4244216(link includes discount, but the promo code is ‘30offcourse’)My Fraud Playlist:https://www.youtube.com/watch?v=SMT5v5zT5KQ&list=PLKzobJwkGwKHVxJPekcn5kskPvgcK258zJoin me on Patreon and ask me your questions:https://www.patreon.com/TheFinController——————————My other best selling courses:🔥Take 30% off when you enroll in my online course “Night Before the Accounting Interview Guide” including All Levels Q&A🔥:https://thefincontroller.com/p/the-night-before-your-accounting-interview-course-for-all-levels?coupon_code=30OFFCOURSE📈Get My “Controller KPI Dashboard” (Excel + Course) with the most important P&L and Balance Sheet KPIs:https://thefincontroller.com/p/controller-kpi-dashboard-one-kpi-dashboard-to-run-a-business———————————————————————Hang Out with me on social media:📸 https://www.instagram.com/the_financial_controller/📱https://www.tiktok.com/@thefinancialcontroller🙋🏼♂️https://www.facebook.com/groups/780732429036886/?source_id=101273467885666DISCLAIMER: Links included in this description might be affiliate links. If you happen to purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel so I can continue to provide you with free content each week!All views expressed on my channel are mine alone. Not intended as financial or professional advice
In this video, you will learn about the uptick rule.#uptickrule #stockmarket #wallstreetmojo #shortselling #circuitbreakerChapters:00:00 – Introduction00:42 – What is the uptick rule?01:36 – Features of rule 20102:13 – How does the uptick rule work?03:40 – ConclusionWhat is the uptick rule?The uptick rule is also referred to as the plus tick rule. It restricts stocks from being shorted at a lower price than their last traded price.For a trader to short the stock as per the uptick rule, they can do so only after the stock has moved at least one tick up, and then they can short it.(Explained in detail in the video)Features of rule 201Circuit breakerDuration of restrictionSecurities coveredImplementationHow does the uptick rule work?The SEC got rule 201 in place to stop the market from crashing if the price declines too much.In short, its main aim is to maintain market stability and protect the confidence of investors in case the market gets attacked by sellers.We have taken an example in the video to understand better how the rule would come into play.So check out the example part in the video.This was all about the uptick rule. Subscribe to the channel, and don’t forget to give this video a like.==========================================================================Subscribe to Our Channel –Youtube https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1LinkedIn https://www.linkedin.com/company/wallstreetmojo/Facebook https://www.facebook.com/wallstreetmojoInstagram https://www.instagram.com/wallstreetmojoofficial/Twitter https://twitter.com/wallstreetmojo
In this video, you will learn everything you need to know about trading desks.#tradingdesk #financialmarkets #wallstreetmojo #financialservices #investmentbankChapters:00:00 – Introduction00:48 – What is a trading desk?01:56 – How do trading desks work?02:50 – Advantages04:15 – Disadvantages05:07 – ConclusionWhat is a trading desk?A trading desk would be a bank or financial institution department that buys or sells financial assets on behalf of clients. The trading desks would comprise expert traders with vast knowledge about the mechanisms of the markets, and they know how to get the best price for their clients.The trading desks may also help clients structure products, provide investment opportunities, or smooth trade facilitation and capital flow among parties.How do trading desks work?Traders on trading desks may specialize in one market segment like equities, fixed income, forex, commodities, etc. And they may even get licenses from regulators.They usually do this through market makers and other electronic trading mechanisms to find the best price for clients.(Explained in detail in the video)AdvantagesEase of market evaluationStructuring financial goodsAdvisory servicesCost reductionEnhanced profitability (Explained in detail in the video)DisadvantagesTrading desks usually aren’t completely transparent. There’s limited transparency when evaluating performance, conducting analysis, and improving strategies.There have also been issues of related party transactions that clients usually are apprehensive of as third parties sometimes control these desks.Finally, the trading desks provide services that are not free, and clients must pay commissions.This was all about trading desks. Subscribe to the channel, and don’t forget to give this video a like.==========================================================================Subscribe to Our Channel –Youtube https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1LinkedIn https://www.linkedin.com/company/wallstreetmojo/Facebook https://www.facebook.com/wallstreetmojoInstagram https://www.instagram.com/wallstreetmojoofficial/Twitter https://twitter.com/wallstreetmojo
In this video, you will learn some details about the take or pay contractual clause.Chapters:00:00 – Introduction00:32 – Benefits01:56 – Risks02:33 – Negotiation of take or pay clause03:38 – ConclusionBenefitsIf the buyer rejects the good, the seller gets paid, and they are free to sell the goods to other buyers. So, it’s a win for them.The take or pay clause also makes it easier for sellers to get financing from banks to fulfill the order as they have payment guarantees.On the other hand, the buyer also gets benefitted from the take or pay clause as they get the goods for long-term at a fixed rate.(Explained in detail in the video)RisksThe contracts that involve such clauses are often long-term contracts. So in case, there’s a drastic change in the future, like Brexit, a pandemic, or anything else, the contracts may not be beneficial to the parties.In such scenarios, the parties may choose to terminate the contract, or they may renegotiate the terms.The risk here is that this has to be done by both parties and not just by one.Negotiation of take or pay clauseHere are some conditions under which renegotiations can happen:Force Majeure Clause (Act of God)Price Clause (Escalation Clause)Review Clause (Renegotiations)This was all about the topic of the take or pay clause. Subscribe to the channel so that you don’t miss out on our content, and don’t forget to give this video a like.==========================================================================Subscribe to Our Channel –Youtube https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1LinkedIn https://www.linkedin.com/company/wallstreetmojo/Facebook https://www.facebook.com/wallstreetmojoInstagram https://www.instagram.com/wallstreetmojoofficial/Twitter https://twitter.com/wallstreetmojo
In this video I’m going to show you how to calculate the NPV (or net present value) of a project in Excel. So I’ve got 20 different projects here with a series of cash flows. Cash outflows are in parentheses, while the cash inflows aren’t. There’s an initial cash outflow in period 0 and then a series of cash flows occurring at the end of each year for 5 years.To calculate the NPV of a project, we’re going to use Excel’s NPV function. So type =NPV and then select the discount rate. I’m going to anchor the discount rate so I’ll be able to drag down the formula and calculate the NPV of each of the 20 projects. You can also type in the discount rate directly; in this case, you’d type in 0.09.Next, highlight the future cash flows. Now you might be tempted to highlight all the project’s cash flows, but don’t do it. You only highlight the cash flows that occur after period 0. So why isn’t the cash outflow that occurs today included in the values? It’s because the NPV function assumes cash flows occur at the end of each period. If the initial cash flow occurs today, then it doesn’t occur at the end of the period and thus shouldn’t be part of the NPV function.But don’t worry, we will account for the cash flow in period 0 separately. After you close the parentheses, add the cash flow from period 0 and hit “Enter.” Thus, the cash outflow that occurs today is still part of the project’s NPV, it’s just not part of the values we enter for NPV function.Now you can see the NPV for Project 1, which is $28,345. To see the NPV for the other 19 projects, just click the fill handle and drag and it down.Now the NPV function assumes the cash flows occurred at the end of each period and that the cash flows were periodic. But what if the cash flows weren’t equally spaced out? For example, what if we had a project with nonperiodic cash flows like this? We have one cash flow occurring on May 6, one occurring February 19, and so forth. We shouldn’t use the NPV function here because the cash flows don’t occur at regular intervals. Instead, we should use the XNPV function. Just type =XNPV, enter the discount rate, select the range of values, and select the dates, and you can see that the NPV of this project is $713. Note that I included the first cash flow in the XNPV function; this is different from the NPV function where we had to deal with the upfront cash flow separately.— Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING• A 44-PAGE GUIDE TO U.S. TAXATION• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS• MANY MORE FREE PDF GUIDES AND SPREADSHEETS* http://eepurl.com/dIaa5z— SUPPORT EDSPIRA ON PATREON*https://www.patreon.com/prof_mclaughlin— GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/* https://michaelmclaughlin.com