EDNA Vlog

In this video, you will learn about the auction market and how it works. #auctionmarket #buyersandsellers #wallstreetmojo #financialmarkets #marketmechanism Chapters: 00:00 – Introduction 00:27 – What is an auction market? 01:24 – How does the auction market process work? 02:16 – Examples 03:05 – Auction market vs dealer market 03:47 – Comparison between Auction Market & Dealer Market What is an auction market? You might know an auction market where a seller keeps something for auction to which buyers put in their bids. Whoever has the highest bid gets to buy it. The same thing happens in the financial markets too. Buyers and sellers quote their price for buying or selling the financial assets, and the transaction is completed just when there is a match between the prices. (Explained in detail in the video) How does the auction market process work? The entire process of an auction is simple. On the one hand, buyers put in their buy orders for the financial asset, also known as bid. On the other hand, sellers put in their sell orders, also known as ask. Once the bid and the ask price match, the transaction is complete. (Explained in detail in the video) Examples The Chicago Mercantile Exchange (CME) and the New York Stock Exchange (NYSE) still operate the open outcry trading system where the auction process happens as traders shout their bids and ask prices. The trading that happens on computers also happens through the auction system only. However, the electronic method has some advantages: it costs less, execution is better and faster, and there is less manipulation compared to the open outcry system. Auction market vs dealer market In an auction market, buyers and sellers quote their offers, and the transaction happens when their orders match. In a dealer market, the dealers specify a price at which the financial asset shall be sold or bought. In an auction market, there is a plain matching of orders after some price discovery takes place. In the dealer market, the dealer is a market maker as they are creating liquidity and transparency in the market. In the auction market, all types of securities are traded, equities, futures, and options. In contrast, the dealer market is the place for the OTC securities market and government securities market. (Explained in detail in 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

Join accounting and finance professionals who are committed to creating an inclusive and equal profession, just like you are. Learn more here: www.aicpa.org/wom #womenlead, #breakthebias, #aicpa

Join accounting and finance professionals who are committed to creating an inclusive and equal profession, just like you are. Learn more here: www.aicpa.org/wom #womenlead, #breakthebias, #aicpa

In this video, you will learn about the concept of anchoring bias and how you can avoid falling for it. #anchoringbias #cognitivebias #wallstreetmojo #decisionmaking #financialmarket Chapters: 00:00 – Introduction 00:24 – What is anchoring bias? 01:36 – Examples in finance 02:41 – How to avoid it? What is anchoring bias? It is known as anchoring bias when a person is given a piece of information and solely relies on it whenever they take any decision. Amos Tversky and Daniel Kahneman first introduced the theory of anchoring bias in their book Judgment under Uncertainty: Heuristics and Biases. (Explained in detail in the video) Examples in finance A trader or an investor may only look at the current price movement and base their decision around it. But they need to look at the complete picture before they act, or they may fall for the anchoring bias and incur losses. (Explained in detail in the video) How to avoid it? Here’s how you can overcome the bias of anchoring: Remove high emotional quotient from decision making Analyze the rationale in all the decisions of life and stick to it Conduct thorough research before making any decision Develop an objective mentality in every circumstance Promote critical and logical thinking This is all about anchoring bias, and make sure you subscribe to the channel so that you don’t miss out on such content we come up with regularly. ========================================================================== 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

Timely, accurate and understandable financial statements are vital to gauge how well a business has performed and to assess the strength of its financial position. Financial statements are a foundation upon which important business decisions are made. Learn the differences among the three services that a certified public accountant (CPA) may perform to provide comfort to users of a business's financial statements. Learn more at https://www.aicpa.org/purpose #cpa #Accounting #Finance #Assurance #financialstatements #Compilation #Review #Audit

In this video, you will learn about anchoring and adjustment. #anchoring #adjustment #wallstreetmojo #decisionmaking #cognitivebias #subconscious Chapters: 00:00 – Introduction 00:24 – What are anchoring and adjustment? 01:23 – Mechanism 02:27 – Anchoring and adjustment examples 03:19 – Anchoring and adjustments heuristics in finance 03:56 – Conclusion What are anchoring and adjustment? When one gives a person a piece of information initially, they stick to that or anchor it while making any decision. It is known as anchoring. A person may deviate from the anchor and make some adjustments. But they shall always stay within the purview of the anchor, and any decision they take will be in line with the anchor. (Explained in detail in the video) Mechanism Anchoring is a cognitive bias where people rely more on the facts when making decisions. While anchoring is a cognitive bias, adjustment to an anchor is a conscious decision that a person takes. Adjustment may allow a person to deviate from the anchor, but it shall always stay within a range that is in line with the anchor. Now, one may induce this concept of anchoring and adjustment in 2 ways: Anchoring via suggestion – When someone else gives the information, it becomes the anchor. Subconscious anchoring – When one is given information by anyone else, the anchor is set subconsciously by the person taking the decision. Anchoring and adjustment examples The concept of anchoring and adjustment can be seen in how used car salesman and clients negotiate the value of a car. The same can be seen in salary negotiations between hiring managers and candidates. (Explained in detail in the video) Anchoring and adjustment heuristics in finance This concept of anchoring and adjustment can be observed in finance too. But unfortunately, financial analysts often let their cognitive biases creep in while they prepare financial models. According to Phillip Tetlock, a financial analyst would better prepare a financial model if they took multiple ideas or perspectives into consideration rather than sticking with one idea only. (Explained in detail in the video) This was all about anchoring and adjustment. So, please like the video and subscribe to the channel so that you don’t miss the content we come up with regularly. ========================================================================== 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

There are several factors to consider when analyzing a company’s DSI. These include: • The company’s DSI relative to its industry • Trends in the company’s DSI over time • DSI in conjunction with other metrics • Caveats that can make DSI misleading This video will discuss all of these factors in detail, and give several examples of current companies' DSI. 0:00 Introduction 0:17 Industry factors 1:49 Example of DSI for discount retail stores 2:33 DSI of Walmart vs Target 4:21 Trends in DSI 4:49 Trends for discount retail stores 5:20 What does an upward spike in DSI mean? 6:59 Other metrics 7:47 Caveats 9:16 Conclusion — 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

Self Improvement Motivation. How to Journal for Self Growth. Go to https://www.bizmove.com to get a free business plan template, plus dozens of tools for managing and starting a business, featuring dozens of templates, books, worksheets, tools, software, checklists, videos, manuals, and spreadsheets. All completely free, no strings attached. Also see here how I managed to save hundreds on car insurance (my dirty little trick): https://www.bizmove.com/auto-car-insurance.

In this video, you will learn everything you need to know about American depositary receipts. #americandepositaryreceipts #adr #wallstreetmojo #foreigncompany #stockmarket Chapters: 00:00 – Introduction 00:22 – What are American depositary receipts? 01:29 – Types of ADRs 02:21 – Advantages of ADRs 03:03 – Disadvantages of ADRs What are American depositary receipts? An American depositary receipt allows investors in the US to purchase shares of companies situated and listed on stock exchanges of other countries. J.P. Morgan was the first to create an ADR in 1927, in which they enabled Americans to invest in a British company, Selfridges. Currently, the US stock exchanges have thousands of ADRs traded representing various companies from various countries. (Explained in detail in the video) Types of ADRs Now that you’ve understood what an ADR is, you should know that there are mainly 2 types of ADRs, sponsored ADRs and unsponsored ADRs. In sponsored ADRs, the banks issuing the ADR, and the company whose ADR is being issued, have a legal relationship. In an unsponsored ADR, the bank and the company do not have any legal relationship. (Explained in detail in the video) Advantages of ADRs When it comes to ADRs, both the company that issues the ADR and the investors that purchase the ADR can benefit a lot. It allows companies to access capital from investors in other countries, and the ADRs can also be used during mergers or acquisitions. For an investor, it allows them to own shares of foreign companies, and it also helps them diversify their portfolios. Disadvantages of ADRs Firstly, unsponsored ADRs may not comply with SEC rules. Hence it may be safe to purchase such ADRs. Secondly, ADRs may not be available for every foreign company. Hence investors may not get lots of options. Finally, investors may be taxed double on the dividends they receive through ADRs if there are no proper tax laws to govern such arrangements. This was all about American depositary receipts. We regularly upload videos on such topics, so make sure you subscribe to the channel. Also, don’t forget to 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, you will learn about a concept known as base rate fallacy and how you can overcome it. #baseratefallacy #decisionmaking #wallstreetmojo #investing #trading #stockmarket #behavioralfinance Chapters: 00:00 – Introduction 00:33 – What is base rate fallacy? 02:43 – Example of base rate Fallacy. 03:44 – How to overcome? What is base rate fallacy? Many investors and traders fall for something known as base rate fallacy. It is a key concept in behavioral finance, and it was pioneered by 2 Israeli psychologists, Daniel Kahneman and Amos Tversky. (Explained in detail in the video) Base rate fallacy is a human tendency to give more importance to particularly small data over a large set of data that sets the base rate. Base rate fallacy refers to people misjudging events by focusing on events that they feel are more relevant, and they ignore events that are, in turn, the most relevant. (Explained in detail in the video) Example What would you do if a company with a bad track record released a good earnings report? Would you invest in that company because it had a good performance, or will you avoid investing in it because it has a bad track record? If you choose to invest in it, you have fallen for the base rate fallacy. (Explained in detail in the video) How to overcome? You should stop making decisions based on a new piece of information and consider the overall context set by past data. If you want to invest in any stock or other financial instrument, you should do that with a long-term mindset. It will allow you to think deeply and not rush into it. (Explained in detail in the video) If you do not have much investing experience, you can consider consulting someone with ample knowledge and experience in investing. This will save you from making poor investment decisions and costing you money. We regularly come up with such content on finance, so do subscribe to the channel if you don’t want to miss out on our content. ========================================================================== 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