Investors Purchase Research Articles

Old age care fund helps to manage their funds In easy way

Abstract: A Old Age Care Funds is a sort of investment vehicle in which the combined capital of several participants is used to purchase a diverse range of bonds, equities, and other securities. Funds, which are professionally managed, give people the chance to invest in a variety of assets without having to handle them themselves. The value of the Fund shares that investors purchase varies according to how well the underlying assets perform. Funds are well-liked by both rookie and seasoned investors because they offer diversity, liquidity, and expert management. Diverse mutual fund categories, such as stock, bond, money market, and hybrid funds, are available to suit varying investment goals and risk tolerances. Investors can select funds according to their risk tolerance, time horizon, and financial objectives. Securities regulators supervise mutual funds to maintain transparency and safeguard the interests of investors. They are now an essential instrument for people to develop a diversified investment portfolio and engage in the financial markets. Old Age Care Fund portfolio analysis is an important component of investment management that includes a variety of approaches for evaluating the performance, risk, and composition of investment portfolios. The efficient market hypothesis (EMH) states that markets are efficient and reflect all available information, making it difficult for fund managers to regularly outperform the market, according to Malkiel and Fame (1970). Jensen (1968) proposed the Capital Asset Pricing Model (CAPM), which emphasizes risk-adjusted returns and the identification of alpha, which indicates a fund manager’s capacity to create excess returns above the market. IndexTerms – Python, Powet-BI, Data Analysis.

Impact of Macroeconomic Factors on Initial Public Offer: An Analytical Study of Investor’s Decision

The financial performance and economic stability of any listed company in India will be measured using various financial and accounting methods. The premise of such matters starts with IPOs (Initial Public Offerings) being issued at the right time and suitable period. Before launching any IPO, a particular company will study a lot of macro and micro economic factors of the concerned region and their impact on IPO success rate. An IPO is a giant leap for a company as it gives access to raising colossal capital. This enhances the ability of a company to expand exponentially. This paper attempted to study several macroeconomic factors that impact Uttar Pradesh's state in the Agra division districts (Agra, Firozabad, Mathura, and Mainpuri) and the investor purchase behavior of different IPOs. Additionally, the research examines four factors namely GDP, Unemployment, Inflation, and Interest rates that are comparatively more significant in a long-run relation. This research found that GDP, inflation rate, and interest rate substantially impact IPO purchase decisions. However, the rate of unemployment has been discovered to have no significant effect on investors' IPO purchase decisions.

PENGARUH PROFITABILITAS, PRICE TO BOOK VALUE, BOOK VALUE PER SHARE TERHADAP HARGA SAHAM PERUSAHAAN PERBANKAN

Composite Stock Price Index (JCI) during 2017-2020 has increased due to the increasing number of investors and also reflected in the high stock prices of banks. Increase of the Bank stock price is result of investor purchases influenced by supply and demand. Study based on data of banking companies listed on the Indonesia Stock Exchange (IDX). There are nine bank stocks on the Indonesia Stock Exchange (IDX) 80 index used as a sample in this study, The Sample is selected using saturation sampling. This study aims to determine the effect of Return on Equity (ROE), Price to Book Value (PBV), and Book Value Per Share (BVPS) on stock pricesin bankingcompanies at IDX 2017-2020. Data analysis used multiple linear regression. Results showed PBV and BVPS had positive significant effect on stock prices. Partially ROE variable hasa negative effect on stock prices in banking companies on the IDX, but partially PBV and BVPS each have positive significant effect on stock prices. This research implies that PBV and BVPS can considered as one the determinants of stock prices, but ROE shows there is no effect on stock prices in banking companies on the IDX 2017-2020.
 Keywords: Profitability, Book Value Per Share, Price to Book Value, Stock Price, Banking Stocks.

Study of Value Investing based on a Modern Approach

Market exploration is necessary to examine and identify attractive deals. This endeavor requires potential investors to analyze the market using effective market hypotheses. This paper focused on exploring value investing as a market and investment pathway. The applicable investment paradigm requires that investors purchase shares in Industries and organizations with promising returns on investment. As a result, investors should target organizations whose share price is lower than the true value. This paper investigated the retail trade industry by exploring randomly selected 20 companies. The 20 companies provided an opportunity to explore the total return of investing in companies between 2015 and 2021. This study used the gross profit margin and return on assets (ROA) as suitable financial ratios to explore the total return of investing in the selected companies. The paper justifies the applicability of gross profit margin and returns on assets (ROA) as financial issues distinguishing between 25% top performers and 25% bottom performers of the 20 selected companies. The analysis showed that 25% of top performers excel in corporate attributes, enhancing the gross profit margin and return on investment. In contrast, the 25% bottom performance lags in market attributes that enhance gross profit margin and return on assets.

Foreign institutional investors and market return volatility: Evidence from symmetric and asymmetric models

This paper empirically investigates the impact of foreign institutional investors on Indian market returns volatility using symmetric and asymmetric volatility models like Generalized Autoregressive Conditional Heteroscedasticity (GARCH) and Exponential Generalized Autoregressive Conditional Heteroscedasticity (EGARCH) respectively. The study has been conducted on two samples using Nifty 50 returns and foreign institutional investors purchase, sale and net investment from the year 2000 in whole sample and from the year 2009 in sub sample on daily basis. The dummy variable is used for global financial crisis that has significantly increased the volatility of Nifty 50 returns. The study has found that foreign institutional investors reduce the volatility in Indian market in most of the cases while net investment by foreign institutional investors increase the volatility of Indian markets. Furthermore, the study has surpassed previous studies by employing symmetric and asymmetric models on same sample of data and in observing that the outcome of this study is largely dependent on frequency of the data and selection of the methodology. The study suggested that there should be some capital control measures in short term and encourage long-term investment.

Short Sellers, Short Squeezes, and Securities Fraud

The modern securities fraud class action lawsuit rests on a legal fiction. Plaintiffs are able to bring claims together and avoid proving individual reliance because over thirty years ago, the Supreme Court assumed that almost all investors purchase and sell securities based on their belief that the market price is accurate. In today's world of short sellers, options traders, algorithmic traders, and institutional investors with more valuation tools than the issuers themselves, that assumption cannot hold. These atypical traders, particularly short sellers, are becoming more and more visible in class actions as lead plaintiffs and lead plaintiff candidates, and sometimes as defendants. Courts have not decided exactly what to do with short sellers in securities fraud cases, and this Article is one of the first to create a theoretical and normative framework for atypical investors in the securities fraud paradigm. Building on a dataset of all 10b-5 cases filed in federal court in 2017, this Article explores the questions of when and whether short sellers and other atypical traders should benefit from the securities fraud class action structure.

A Historical Analysis of the Investment Company Act of 1940

More than 100 million Americans invest $25 trillion in mutual funds and exchange-traded funds (collectively, “funds”) regulated by the Investment Company Act of 1940 (the “Act”), making funds the predominant investment vehicle in the United States. Everyday investors rely on funds to save for retirement, pay for college, and seek financial security. In this way, funds demonstrate how “Wall Street” can connect with “Main Street” to improve people’s lives. By way of background, funds are created by investment advisers (“advisers”) that provide investment advisory (e.g., stock selection) and other services to their funds in exchange for a fee. Investors purchase shares of a fund, which represent a pro-rata interest in the fund’s net assets—essentially, the securities chosen by the adviser—with the hope that the value of those assets, and in turn, the value of the fund, will appreciate. Although managing a fund is expensive, pooling investments from the public allows an adviser to spread its costs over an entire fund, which allows professional money management to be affordable for all. Prior to the Act, the unique structural aspects of funds, coupled with a lack of regulation, enabled rogue advisers to put their own interests ahead of those of fund shareholders. These structural aspects include that a fund typically relies on its adviser, which seeks to make a profit, to manage its day-to-day operations. Before 1940, adviser personnel also dominated the boards of directors of funds, which are responsible for overseeing the adviser and negotiating its compensation. This made funds susceptible to rogue advisers that were more interested in managing funds to benefit themselves and their “affiliates” (i.e., their employees and related businesses), as opposed to increasing the value of their funds. Recognizing the vital role that funds play for both the overall economy and the citizen of “small means,” the Securities and Exchange Commission (SEC) and the fund industry worked together to draft the Act, which Congress passed unanimously. The incredible growth of funds over the past 80 years is often attributed to the oversight and direction provided by the Act, which regulates all facets of fund operations and is arguably the most complex of our nation’s securities laws. Understanding the policy concerns that led to the Act helps to cut through that complexity and make sense of the Act’s provisions. As a result, this article focuses on those concerns, which can be thought of as guiding “Principles,” to demonstrate how the Act seeks to: (1) prevent insiders from taking advantage of funds they manage; (2) require effective disclosure; and (3) ensure the equitable treatment of shareholders. The Principles make the Act easier to apply by serving as shoal markers for conduct to avoid. But, just as a buoy indicates dangerous areas to avoid, the Principles also help guide conduct that steers clear of them. The Principles are thus a useful lens for interpreting the Act, particularly when considering novel situations or whether, per the “rubber” built into the Act, exemptive or other relief is appropriate. In these instances, harnessing the history and purpose of the Act can help advisers, fund directors, practitioners, and regulators apply the Act and ensure that funds remain a driver of national and, most importantly, investor gain.

Hisse Fiyatları ile Yabancı Yatırımcı Ticareti Arasındaki İlişki: Borsa İstanbul da İşlem Gören Bankalar Üzerine Bir Uygulama (The Relationship between Stock Prices and Foreign Investor Trading: An Application to Banks Listed in Borsa Istanbul)

Purpose – In this study, it is aimed to examine the relationship between foreign investor trading transactions and stock prices on the banks scale listed in Borsa Istanbul between January 2000 and December 2018. Design/methodology/approach – Panel cointegration test was used to determine the cointegration relationship, and panel causality test was applied to determine the causality relationship. Findings – The results of the panel cointegration test indicate the existence of long-run cointegration relationship between foreign investor trading and stock prices. The estimated long-run elasticities suggest that foreign investor purchases have a statistically significant positive impact on stock prices while foreign investor sales have a statistically significant negative effect on stock prices. The findings of the panel causality test provide evidence of one-way causality running from stock prices to foreign investor sales. Discussion – The results of the cointegration test show that the variables move together in the long run. According to these results, foreign investors purchases and sales and stock prices move together in the long run. In the short term, causality tests are conducted for evaluations about the direction of the relationship. The causality test results show that the change in stock prices is the reason for the sales of foreign investors.

Do Reference Prices Impact How Investors Respond to News?

We provide evidence that reference prices impact how investors respond to news. When current prices are farther from a reference price, investors react more strongly to news. We first document that individual investors are more (less) likely to sell a stock following bad (good) news when the stock's trading price is farther from the investor's purchase price. Motivated by this micro-level evidence, we construct a stock-level measure to capture the distance between a stock's trading price and its purchase price for the average investor. We provide evidence that this distance from purchase price produces a substantial amount of cross-sectional variation in the degree to which stocks over- or underreact to news. Stocks trading farthest from their purchase price react more strongly to news than stocks trading near their purchase price. Consistent with relative overreaction, stocks trading farthest from their purchase price also exhibit greater return reversals following news days. We document that a cross-sectional strategy exploiting these return patterns earns a monthly alpha of 0.93%. These findings are distinct from alternative explanations related to size, illiquidity, and volatility. Our evidence instead suggests that reference prices have a meaningful impact on how investors respond to news.

Re: Concept Release on Harmonization of Securities Offering Exemptions; File Number S7-08-19

The most important safe harbor under from registration under the Securities Act is Rule 506(b), which exempts an unlimited amount of securities from registration provided the issuer meets certain conditions. Although 506(b) permits up to 35 non-accredited investors to participate in offerings under the exemption, issuers almost always limit offerings to accredited investors. Although issuers exclude non-accredited investors for various reasons, one important reason is that the presence of purchasers other than accredited investors triggers disclosure obligations that are prohibitively costly for many private offerings. In this comment, we propose a pathway for issuers to allow non-accredited investors (whom we call investors) to invest alongside accredited investors in limited amounts without triggering the disclosure obligations otherwise applicable. Our proposal would allow covered investors to participate in Rule 506(b) offerings up to the amount of accredited investor participation, with limits on any individual covered investor's purchases drawn from Tier 2 of Regulation A. Our proposal would maintain the prohibition on general solicitation or advertising, ensuring that non-accredited investors are not targeted for investments. We believe this reform would remove a legal barrier that results in the systematic exclusion of investors based solely on their wealth or income, while maintaining the necessary level of investor protection.

Foreigners at the gate? Foreign investor trading and the disposition effect of domestic individual investors

Using the account-level data of a major Korean securities firm between 1999 and 2005, we examine whether the strength of domestic individual traders’ disposition effect is affected by the inflow of foreign investors. Our sample period, beginning just after the liberalization that lifted the cap on foreign investor ownership, allows for an interesting insight into how domestic individuals perceive foreign investors’ entry into an emerging stock market. We find that individual investors are more likely to realize paper gains on stocks with large recent foreign investor purchase, which appears to be behaviorally motivated. These individual investors are also less likely to trade stocks with large foreign ownership in the first place, further hinting at their aversion. Our main results are robust to a difference-in-difference analysis based on the inclusion of a stock into the MSCI Korea index.

Changes in Farmland Ownership in Oregon, USA

The ownership of agricultural land has important implications for food systems, the environment, farmer livelihoods, and rural economies, communities, and landscapes. This article examines the changing ownership of agricultural lands in the United States, specifically focusing on Oregon, a state with a history of family farm ownership. I first review historical and recent trends in farmland ownership, including private enclosure, consolidation, investor purchase, development, and rising farmland prices. Next, I examine the county records for all Oregon farm properties that sold between 2010 and 2015. I provide summary statistics about the volume and pace of transactions, price per acre, and the type of owner. I also offer brief cases on top purchasers, attempting to understand their intentions with the farm properties. The findings demonstrate a rapid turnover in Oregon farmland and high prices, though that varies across the state. Agricultural corporations, investment companies, and real estate and development interests are buying large amounts of farmland. I conclude by offering reflections on the implications of the changing ownership and direction for further research.

Comparative Study of Stock Exchanges in China, Hong Kong, and Taiwan

Equity exchanges are sprouting in developing countries due to the privatization of state-owned enterprises. China officially opened its first recognized stock exchange, the Shanghai Security Exchange in December, 1990 and a few months later the Shenzhen Stock Exchange opened. This paper compares the micro-structure of the equity markets in China, Hong Kong, and Taiwan.For a foreign investor, the markets in Hong Kong contain the least restriction and are the most accessible. Both China and Taiwan impose restrictions on foreign investment. China restricts foreign investment by only allowing the purchase of B shares Chinese exchanges, while Taiwan limits foreign investors to only four investment funds. China also allows for higher commissions on foreign investor purchases. In addition, Non-Chinese investors in A shares may be subject to a 20% withholding tax on that portion of dividend income that exceeds the People’s Bank of China’s one-year rate for the same period.These discriminatory measures can be expected to have a negative impact on foreign capital inflows and to reduce the liquidity of these markets. The impact on the prices of shares and potential rates of return cannot be positive from these restrictions since, all else constant, lower demand implies lower price. It may be, however, that the inherent potential in these growing markets from recent political and economic changes may create high rates of return, despite the restrictions on capital flows. There are also other alternatives for capital inflows to direct stock investment, such as Foreign Direct Investment (FDI). FDI, in turn, may well flow through to higher stock prices.

Investification: Financialisation of housing markets and persistence of suburban socio-economic disadvantage

The relationship between urban housing markets and spatial patterns of socio-economic disadvantage has fascinated urban scholars for decades. The gentrification and subsequently suburbanisation of disadvantage literatures have explained how housing markets are both a driver, and outcome, of changes in the socio-economic composition of urban areas, albeit focusing mainly on owner occupation and social housing. In the 2000s, research into the financialisation of housing finds increased household-level investment in private rented housing as an important contemporary driver of housing markets. Based on a detailed study of Melbourne (Australia) in 2001–2011, the article identifies established suburbs of persistent population socio-economic disadvantage, which were characterised by sale prices and rents increasing above citywide rates in 2001–2011 and a disproportionate increase in private rented housing. The article offers a new concept of investification to explain a process whereby disproportionately high levels of household investor purchases in disadvantaged suburbs contribute to higher prices/rents and to the persistence of socio-economic disadvantage, as properties are rented on the private market to low socio-economic households, indicating replacement rather than displacement. Connecting with research on the financialisation of housing through the concept of ‘investification’ can provide a more nuanced understanding of the relationship between contemporary housing market change and the geography of suburban disadvantage in the Australian context. The concept is likely to be of broader significance given the recent increase in Buy-to-Let activity in countries such as the UK, opening up new research questions on the interrelationship between households as investors and consumers and the geography of urban disadvantage.

Foreclosures, Investors, and Uneven Development during the Great Recession in the Los Angeles Metropolitan Area

ABSTRACT:In the wake of the U.S. housing crisis, what has happened to the substantial stock of foreclosed or real estate–owned (REO) properties is only beginning to be understood. The eventual outcomes of these properties are central to our understanding of the varied impacts of the foreclosure crisis, including its contribution to enduring and emerging patterns of uneven development. This article considers the scope and potential impacts of investor purchases of foreclosures in diverse neighborhoods in the Los Angeles region. Overall, findings suggest that very different patterns of investment emerged in the urban core, the postwar inner-ring suburbs, and the exurbs. In addition, investors’ purchases and strategies varied significantly according to neighborhood racial composition and, to a much lesser extent, neighborhood socioeconomic characteristics. These patterns highlight two major issues: a sharp divide in investment between the relatively similar urban/inner-ring suburban core and the newer exurbs; and the enduring relationship between race and capital investment in neighborhoods in the wake of the housing crisis.

Institutional investment, equity volume and volatility spillover: Causalities and asymmetries

We study four-varyingly liberalized emerging markets, precisely, India, Korea, Taiwan and Vietnam, to test causalities and asymmetries of price volume relationship in the conditional second moment. Unlike past literature, equity volume appears as endogenous dynamic information evolving simultaneously with volatility. We extend past researches correlating equity return and volume after splitting into domestic and foreign institutional investor purchases. Uniquely, volatility led impact on volume is much bigger than the volume led impact on volatility. Among other results, we highlight that conditional correlation between volume dispersion and returns dispersion triggers and plays an important role in the stabilization of equity markets.

A Long‐Term Perspective on the Determinants of Treasury Bond Stripping Levels

We examine the proportion of individual Treasury bonds held as strips over the entire history of the STRIPS program. First, we document a secular decline in the Treasury bond stripping levels from 1985 to 2010, coincidental with the long‐term decline in the interest rates. This pattern suggests that investors purchase strips to avoid reinvestment risk and to lock in the high interest rates in the 1980s and 1990s. Second, higher coupon and longer maturity bonds are shown to be more heavily stripped. Third, the suspension of new issues of 30‐year bonds from 2001 through 2006 created a gap in the maturity structure of Treasury bonds and induced heavy stripping of 30‐year bonds issued post 2006. Our findings suggest that stripping is motivated by several factors, including interest rate risk management, tax concerns and market completion.

Nonlocal Office Investors: Anchored by their Markets and Impaired by their Distance

Nonlocal investors purchase and sell investment property in a distant metropolitan area. In this study, we identify capital value underperformance for nonlocal investors on both sides of the transaction, when they purchase and when they sell. The commercial real estate transactions data include a national sample of office property occurring in more than 100 U.S. markets. Using propensity-score matched sample to control for selection bias, we find that nonlocal investors overpay on the purchase by an estimated 13.8 % and sell at an estimated 7 % discount. These disadvantages relative to local investors expand with the geographic distance separating investor and asset. Nonlocal investors fundamentally overvalue similar assets sold to each other relative to assets transacted between locals, and are less patient as sellers. The positive bias in overpayment is directly tied to office rent differentials between the asset and investor markets.

Demand for Crash Insurance, Intermediary Constraints and Stock Return Predictability

The net amount of deep out-of-the-money (DOTM) S&P 500 put options that public investors purchase (or equivalently, the amount that nancial intermediaries sell) in a month is a strong predictor of future market excess returns. A one-standard deviation decrease in our public net buy-to-open measure (PNBO) is associated with a 3.4% increase in the subsequent 3-month market excess return. The predictive power of PNBO is especially strong during the 2008-09 nancial crisis, and it cannot be accounted for by a wide range of standard return predictors, nor by measures of tail risks or funding constraints. Moreover, PNBO is contemporaneously negatively related to the expensiveness of the DOTM puts. To explain these

The market for new issues of municipal bonds: The roles of transparency and limited access to retail investors

I examine how transparency and interdealer trading affects prices investors pay in municipal bond offerings. Real-time trade reporting for municipal bonds started January 31, 2005. The dispersion of purchase prices fell sharply at that time. There was little impact on average markups for most trades, but they increased for purchases of more than $100,000. Bonds often pass through a series of dealers before being placed with a buy-and-hold investor. As the interdealer trades progress, trade sizes decline and trade prices rise. Markups on investor purchases increase with the amount of interdealer trading before the trade.