Tech and NewsT2

Credit risk rethought – The new data imperative

Fri, 25 Sep 2020 15:07:43 +0000

Performance Share Units-Derivative Valuation in Python

Sat, 08 Aug 2020 16:46:14 +0000

Performance share units are hypothetical share units that are granted to you based mainly on corporate and/or individual performance. Structurally, they are very similar to restricted stock units except these are more focused on your performance. They are designed to mirror share ownership and you will generally be granted additional units having the same value as dividends being paid on the regular shares http://tech.harbourfronts.com/derivatives/performance-share-units-derivative-valuation-python/

Watch Robinhood's first-ever Super Bowl commercial, which will further fuel its massive download numbers

Wed, 03 Feb 2021 16:19:07 +0000

A still from Robinhood's 2021 Super Bowl ad

Robinhood/YouTube

Robinhood will air a 30-second ad during this weekend's Super Bowl.
The app has made headlines for a short-squeeze saga involving GameStop and other stocks.
The commercial is its first Super Bowl spot.
Visit the Business section of Insider for more stories.

Robinhood will air a 30-second ad during this weekend's Super Bowl in the wake of a tumultuous few weeks for the online brokerage.

The commercial - Robinhood's first to run during a Super Bowl game - arrives at a crucial time for the company and will only further increase its awareness among mainstream audiences and undoubtedly lead to even more downloads of the stock-trading app.

In the ad, posted to Youtube on Wednesday, footage of people going about their daily lives plays as a voice-over says, "We are all investors." The message echoes Robinhood's stated mission to remove barriers to investing, with the voice telling viewers that they don't need to become an investor, because they "were born one."

Robinhood's motto is "Democratizing finance for all," and that accessibility is part of what attracted amateur traders, many of them from the WallStreetBets forum on Reddit, to buy up GameStop, AMC, and other stocks on the platform last week.

But Robinhood was met with outcry after it temporarily froze trading last week to meet clearing house regulations. Though the freeze has been lifted, the app still has trading restrictions and limits for several of the short-squeezed stocks.

The Wall Street Journal reported that Robinhood bought the ad time in December, and that a person familiar with the company's internal workings said there were discussions about whether to pull the spot in the wake of public outcry.

GameStop shares appear to be trending downwards - Tuesday saw them dip 85% below an all-time peak of $483, according to Markets Insider. Meanwhile, politicians from both parties are calling for hearings to investigate their trading practices.

Despite a surge of negative reviews and even a chartered plane trailing a banner expressing users' frustration with Robinhood, the app saw a rise in downloads last week. Insider reported Wednesday that its downloads increased nearly twofold last week versus the week before.

Judging by YouTubers' reactions to the new ad spot, the reaction has been mixed. As of 10:15 a.m. EST on Wednesday, the video posted Wednesday morning had 13 likes and 375 dislikes on YouTube.

Read the original article on Business Insider

options trading strategies

We are going to search for the optimal portfolio, i.e. one that has the highest risk-adjusted return. To do so, we will maximize the portfolio’s Sharpe ratio. The Sharpe Ratio is a financial metric that helps investors determine the return of an investmen

Mon, 25 Jan 2021 23:43:40 +0000

We are going to search for the optimal portfolio, i.e. one that has the highest risk-adjusted return. To do so, we will maximize the portfolio’s Sharpe ratio. The Sharpe Ratio is a financial metric that helps investors determine the return of an investment compared to its risk. The higher the Sharpe Ratio of a portfolio, the better it is in terms of risk-adjusted return. #investing #diversification #python #portfolio #trading #risk #investment

The trend in the increased holding of risky assets continues. Because of Covid-19, the big banks now hold more illiquid, opaque assets than before. #debt #bond #loan #mortgage #risk #investing #equity

Tue, 25 Aug 2020 11:07:24 +0000

The trend in the increased holding of risky assets continues. Because of Covid-19, the big banks now hold more illiquid, opaque assets than before. #debt #bond #loan #mortgage #risk #investing #equity

Exponentially Weighted Historical Volatility In Excel

Thu, 04 Mar 2021 23:50:24 +0000

We use the Exponential Weighted (EW) historical volatility that assigns bigger weights to the recent returns, and smaller weights to the past ones. The EWHV is more responsive than the equally weighted historical volatility. Also, the decline of the EWHV from its peak is smoother than that of the equally weighted HV. http://tech.harbourfronts.com/exponentially-weighted-historical-volatility-in-excel-volatility-analysis-in-excel/

There are two types of volatility: historical volatility and implied volatility. In a series of previous posts, we presented methods and provided Python programs for calculating historical volatilities. In this post, we are going to discuss implied volati

Sun, 27 Sep 2020 11:42:28 +0000

There are two types of volatility: historical volatility and implied volatility. In a series of previous posts, we presented methods and provided Python programs for calculating historical volatilities. In this post, we are going to discuss implied volatility and provide a concrete example of implied volatility calculation in Python. #python #volatility #option #finance #trading #risk #hedge

GameStop and other meme stocks rebound after sharp sell-off as Reddit traders 'hold the line'

Wed, 03 Feb 2021 16:08:22 +0000

Ethan Miller/Getty Images

GameStop, AMC, and other retail-trader favorites rebounded as the Reddit-fueled rally regained steam.
On Tuesday, a cohort of highly volatile stocks plummeted as investors secured profits and minimized losses.
The day-trader crowd is at a crossroads: Repeat recent weeks' wild rallies, or cash out.
Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

GameStop, AMC Entertainment, and other Reddit darlings rebounded on Wednesday as retail investors banded together to "hold the line." The phrase has become a popular rallying cry on the Wall Street Bets subreddit among day traders hoping to preserve recent gains.

The group of highly shorted stocks plunged on Tuesday - including a 60% single-day drop for GameStop - as investors looked to secure gains or minimize losses.

The investors are at a crossroads: They can try again at bidding the names higher, or run for the exit.

Trading on Wednesday suggested that the coordination that powered last week's climb was wavering. GameStop rose as much as 26% in early trading, while AMC gained as much as 14%. BlackBerry climbed 4% at intraday highs, while Nokia and Bed Bath & Beyond posted similarly modest gains.

More-seasoned investors had repeatedly said that while some day traders could mint small fortunes through the Reddit-fueled surge, many who entered the trade late stood to lose big. The parabolic nature of the stocks' rally also lends itself to a similarly steep crash as profit-taking spurs others to sell out of concern that they'll be the last ones holding their shares.

It's possible the retail investors were encouraged by the easing of trading restrictions by Robinhood and other broker-dealers. Several trading platforms last week temporarily blocked investors from buying shares of GameStop, AMC, and other highly volatile stocks, saying they were trying to protect clients from unprecedented market risk.

Those policies have been somewhat reversed, allowing the army of day traders to continue buying at least some shares this week.

GameStop and most of the other so-called meme stocks still trade well above where they sat at the start of the year. Some companies have used the phenomenon to their advantage; AMC paid down debts and sold stock at extraordinary highs to extend its cash runway. Weeks after warning that it could go bankrupt, the company leveraged the retail-trader frenzy to stay afloat.

"The sun is shining on AMC," CEO Adam Aron said in a statement on January 25, adding that any talk of imminent bankruptcy was "completely off the table."

GameStop closed at $90 on Tuesday, up 367% year-to-date.

AMC closed at $7.82, up 262% year-to-date.

Read the original article on Business Insider

options trading strategies

A warrant is a financial derivative instrument that is similar to a regular stock option except that when it is exercised, the company will issue more stocks and sell them to the warrant holder. The valuation of warrants is similar to the valuation of sto

Wed, 19 Aug 2020 13:25:39 +0000

A warrant is a financial derivative instrument that is similar to a regular stock option except that when it is exercised, the company will issue more stocks and sell them to the warrant holder. The valuation of warrants is similar to the valuation of stock options except that the effect of dilution should be considered. #stock #option #quant #risk #investing #trading #volatility #warrant

Modern Portfolio Theory-Portfolio Management in Python

Sat, 05 Dec 2020 21:54:13 +0000

Harry M. Markowitz is the founder of Modern Portfolio Theory (MPT) which originated from his 1952 essay on portfolio selection. In this post, we are going to provide a concrete example of implementing MPT in Python. Our portfolio consists of 3 Exchange Traded Funds (ETF): SPY, TLT, and GLD which track the S&P500, long-term Treasury bond, and gold respectively. http://tech.harbourfronts.com/trading/modern-portfolio-theory-portfolio-management-python/

A Pricing Model for Earthquake Bonds

Mon, 18 Mar 2024 04:25:06 +0000

A catastrophe bond, commonly referred to as a cat bond, is a type of insurance-linked security that allows insurers and reinsurers to transfer the risk associated with catastrophic events, such as natural disasters, to capital market investors. These bonds are typically issued by insurance companies or special purpose vehicles (SPVs) and are designed to provide financial protection against specified catastrophic events, such as hurricanes, earthquakes, or pandemics.

In the event of a qualifying catastrophe, the issuer may not have to repay some or all of the principal to investors, thereby providing much-needed funds to cover the losses incurred by the insured parties. However, if no qualifying event occurs during the bond's term, investors receive periodic coupon payments and the return of their principal at maturity.

An earthquake bond is a type of catastrophe bond, in which an insurer, reinsurer, or government, transfers a portion or all of the earthquake risk to investors in return for higher yields. Earthquake bonds are crucial in countries prone to earthquakes. However, pricing them presents challenges. Reference [1] developed a pricing model for earthquake bonds. The authors pointed out,

This research presents an EB pricing model involving inconstant event intensity and the maximum strength of extreme earthquakes under the risk-neutral pricing measure. Focusing on extreme earthquakes simplifies the modeling process and data collection and computing time compared to considering the infinite frequency of earthquakes occurring over a continuous time interval. The inconstant intensity of the event is accommodated by an inhomogeneous Poisson process, while the maximum strength is modeled using extreme value theory (EVT). Then, the model is applied to earthquake data in Indonesia, the country with the second highest frequency of earthquakes worldwide. Finally, the variable sensitivities of EB prices are also analyzed.

In short, the authors modeled the risk-free interest rate using the Cox–Ingersoll–Ross model. They accommodated the variable intensity of events with an inhomogeneous Poisson process, while extreme value theory (EVT) was used to model the maximum strength.

This paper makes an important contribution to the pricing of catastrophe bonds, aiding countries in effectively managing risks associated with natural disasters.

Let us know what you think in the comments below or in the discussion forum.

References

[1] Riza Andrian Ibrahim, Sukono, Herlina Napitupulu and Rose Irnawaty Ibrahim, Earthquake Bond Pricing Model Involving the Inconstant Event Intensity and Maximum Strength, Mathematics 2024, 12, 786

Originally Published Here: A Pricing Model for Earthquake Bonds

Implied Volatility Of Options-Volatility Analysis in Python

Sat, 26 Sep 2020 23:26:40 +0000

There are two types of volatility: historical volatility and implied volatility. In a series of previous posts, we presented methods and provided Python programs for calculating historical volatilities. In this post, we are going to discuss implied volatility and provide a concrete example of implied volatility calculation in Python. http://tech.harbourfronts.com/trading/implied-volatility-options-volatility-analysis-python/

How to Determine Implied Dividend Yield-Derivative Valuation in Excel

Sat, 06 Mar 2021 21:29:42 +0000

We discuss ways to determine the dividend yield accurately. We use traded options to determine the implied dividend yield. Specifically, if the options are of European-style exercise, then we can use the put-call parity to create a synthetic single stock future. http://tech.harbourfronts.com/how-to-determine-implied-dividend-yield-derivative-valuation-in-excel/

Pair trading, or statistical arbitrage, is one of the oldest forms of quantitative trading. We are going to present some relevant statistical tests for analyzing the Australia/Canada pair. We chose this pair because these countries’ economies are tied str

Sun, 29 Nov 2020 13:31:36 +0000

Pair trading, or statistical arbitrage, is one of the oldest forms of quantitative trading. We are going to present some relevant statistical tests for analyzing the Australia/Canada pair. We chose this pair because these countries’ economies are tied strongly to the commodity sector, therefore they share similar characteristics and could be a good candidate for pair trading. #trading #statistics #arbitrage #volatility #quantitative #finance #python

Forecasting Volatility With GARCH Model-Volatility Analysis in Python

Mon, 26 Oct 2020 15:16:26 +0000

In a previous post, we presented an example of volatility analysis using Close-to-Close historical volatility. In this post, we are going to use the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model to forecast volatility. http://tech.harbourfronts.com/trading/forecasting-volatility-garch-model-volatility-analysis-python/

Employee Stock Options-Derivative Pricing in Python

Sun, 02 Aug 2020 22:15:29 +0000

Valuation of Employee Stock Options is different from regular stock options. In this post, we are going to implement the approach proposed by Hull and White. Specifically, we are going to implement the vesting and forfeiture rate features. Other features can also be implemented without difficulty http://tech.harbourfronts.com/derivatives/employee-stock-options-derivative-pricing-python/

Stocks making the biggest moves midday: Alphabet, Spotify, GameStop, Amgen & more

Wed, 03 Feb 2021 17:38:25 +0000

Check out the companies making headlines in midday trading.

options trading strategies

Health Insurance Portability And Accountability Act

Wed, 03 Feb 2021 16:44:17 +0000

The Health Insurance Portability and Accountability Act of 1996 was enacted by the 404th United States Congress. It was created to protect individuals who need to change health insurance plans or providers due to changing health conditions or circumstances. It also encourages health insurance providers to allow change, regardless of whether the individual had coverage at the time the change takes effect. The Act is important for people who purchase insurance on their own and for employers who provide insurance to their employees. It encourages insurance companies and providers to cooperate with each other to provide adequate health insurance to all Americans. There are three main provisions under the Act that directly affect the insurance industry and health care providers.

The Act requires that all health insurance contracts are legally enforceable. It also requires all private health information technology systems to maintain certain standards of security. It also requires providers of health insurance to take measures to mitigate against unintentional disclosure of patients' health information to third parties. The Act also encourages companies and providers to work together to promote better patient care. One provision requires health information technology to periodically review security programs and recommend appropriate upgrades.

Both the health insurance portability and accountability act encourages providers and employers to consider electronic patient records (EPRS) a part of their EHBS or preferred provider organizations. Electronic health care records can include more than just date of birth or illness but can include a full medical history, discharge summary, surgical procedures, outpatient medication history, health plan documents, insurance claims, physician communications, and much more. The Health Insurance Portability and Accountability Act also encourage health care providers and carriers to use EHRs to provide accurate and current health care records to patients.

Another provision of the health insurance portability and accountability act requires healthcare providers who do not use EHRs to give notice to patients and provide privacy protection protections. Healthcare providers are also required to update and make available to patients about their privacy security protections at least once each year. This is done through an Affidavit of Privacy Protection. Providers who fail to comply with this requirement may be subjected to fines.

An employer who does not have an EHR will still be required by law to provide employees access to their EHR. Employees may be required to designate a primary health care provider. EHR vendors must provide designated individuals with up-to-date, comprehensive health care reports on their health insurance coverage, including their Medicare and Medicaid coverage. The act also requires EHR vendors to provide notice of changes in policy, and procedures for choosing and purchasing health insurance, as well as how to cancel or change health insurance.

There are numerous regulations regarding health insurance portability and accountability, including definitions of terms, the rules for opting out of EHRs, and the reporting requirements. Each of these areas is the subject of a wide variety of State and Federal rules. Each year, numerous changes to the health insurance portability and accountability act are made in attempts to improve these systems.

McDonald's gets approval to sue its ousted CEO, alleging he covered up sexting and inappropriate relationships with subordinates

Wed, 03 Feb 2021 16:07:15 +0000

McDonald's has the go-ahead to sue its former CEO.

Getty Images

A judge denied former McDonald's CEO Steve Easterbrook's motion to dismiss a case against him.
The company alleges Easterbrook covered up sexual relationships with three subordinates.
McDonald's argued it would not have granted Easterbrook severance if he did not delete sexts.
Visit the Business section of Insider for more stories.

A Delaware judge has approved McDonald's efforts to sue former CEO Steve Easterbrook over allegations the ex-executive covered up sexual relationships with employees.

On Tuesday, Vice Chancellor Joseph Slights III of the Court of Chancery in Delaware denied Easterbrook's motion to dismiss the company's lawsuit against him.

McDonald's sued Easterbrook in August, alleging that the company found new evidence that he covered up sexual relationships with three female employees during his last year leading the company. According to McDonald's, investigators uncovered "dozens of nude, partially nude, or sexually explicit photographs and videos of various women," including three McDonald's employees, on the company's servers.

Easterbrook was terminated by McDonald's in November 2019 after an investigation into his relationship with a different McDonald's employee. At the time, McDonald's investigators found evidence that the relationship was sexual but not physical. Easterbrook was terminated and given a severance package worth up to $57 million.

McDonald's alleges that Easterbrook deleted photos and videos from his phone that would have lead investigators to discover his sexual relationships with other women in 2019. If McDonald's had this information, the company says, it would not have granted Easterbrook severance.

Easterbrook's attorney argued that McDonald's could have accessed the evidence on its servers when the severance agreement was signed in November 2019. Further, Easterbrook's attorney argued, McDonald's filed its lawsuit in the wrong state. An attorney for Easterbrook did not respond to Insider's request for comment.

Slights, the judge, was not convinced by Easterbrook's attorneys' arguments, denying Easterbrook's motion to dismiss.

"With the Court's denial of Steve Easterbrook's motion to dismiss, we can now move forward with our case seeking the return of his severance payment and to hold him accountable for his lies and his efforts to destroy evidence," McDonald's told Insider in a statement.

"He violated the Company's policies, disrespected its values, and abused the trust of his co-workers, the Board, our franchisees, and our shareholders," the statement continued. "We look forward to bringing the evidence of Easterbrook's misconduct before the Court and to proving our case."

Read the inside story of how Easterbrook went from the chain's savior to its worst nightmare here.

Read the original article on Business Insider

options trading strategies

Performance share units are hypothetical share units that are granted to you based mainly on corporate and/or individual performance. Structurally, they are very similar to restricted stock units except these are more focused on your performance. They are

Thu, 06 Aug 2020 16:37:35 +0000

Performance share units are hypothetical share units that are granted to you based mainly on corporate and/or individual performance. Structurally, they are very similar to restricted stock units except these are more focused on your performance. They are designed to mirror share ownership and you will generally be granted additional units having the same value as dividends being paid on the regular shares. #stock #option #finance #market #trading #investing #risk

We presented statistical tests for the Australia/Canada country ETF pair. In this follow-up post, we are going to implement a trading strategy using this pair in Python. We utilize the remaining 2 years out-of-sample data to generate trading signals and c

Sun, 06 Dec 2020 21:36:39 +0000

We presented statistical tests for the Australia/Canada country ETF pair. In this follow-up post, we are going to implement a trading strategy using this pair in Python. We utilize the remaining 2 years out-of-sample data to generate trading signals and calculate strategy performance. #statistics #arbitrage #etf #trading #quantitative #python #algorithmic

Modern Portfolio Theory introduces the concept of an efficient frontier. An efficient frontier represents a set of portfolios that maximize the expected returns for each level of risk or standard deviation. For every level of return that investors expect,

Sat, 12 Dec 2020 18:16:36 +0000

Modern Portfolio Theory introduces the concept of an efficient frontier. An efficient frontier represents a set of portfolios that maximize the expected returns for each level of risk or standard deviation. For every level of return that investors expect, there is an #investment that can offer them the lowest standard deviation. Similarly, for every level of risk, there is a #portfolio that gives the highest return. #risk #diversification #investing #trading #finance

Is Health Insurance Mandatory?

Fri, 02 Apr 2021 13:55:06 +0000

Is Health Insurance Mandatory? Yes, you may be required to get certain medical coverage if you are working in a private or public sector. However, not everyone will be covered for the same and certain plans may be available only to employees of a specific company. Those who do not have to purchase medical coverage through their employer may want to consider looking into the various options that are available. If you have to buy your own health insurance, you will want to consider several things, such as: How much do you pay? Do you get the same coverage as you would with your employer?

Many people believe that they need to buy their own insurance if they can't get coverage through an employer. In fact, the vast majority of people get their health insurance through an employer. There are rarely any “subsidized” plans available that can be purchased by employees of a company without paying for it. You may find that you have to buy more than just group insurance if you don't have to take out a policy from your employer. You should always look at the different kinds of policies before deciding on a plan, as every policy has its own rules and limitations.

Most companies only offer one kind of insurance, either group or individual, which can lead to confusion amongst consumers. However, there is actually no national standard for what type of coverage is offered. Each state has its own regulations regarding health care insurance. Therefore, if you are interested in finding something that works for you, try to find out what all the state requirements are for the type of health coverage that you need.

If you get your health insurance from an employer, keep in mind that you may have to pay a hefty fine if you go without insurance. Also, your employer may not cover any pre-existing conditions. For this reason, some people opt for an HMO or PPO policy, which covers you for a flat monthly fee that you pay directly from your pocket. The downside to this is that you cannot choose the doctors that you want to see. Furthermore, you may only get a limited number of doctors available in your network.

If you are self-employed, you will have to decide if you want to get individual or family health insurance. For an individual policy, you can choose the coverage limits as well as the doctors that you can see. However, you are not required to get health insurance through your employer, and you may have to pay an extra premium if you choose to do so.

The bottom line is that you need to get health insurance in case something happens to you that leaves you thousands of dollars in medical bills. When deciding whether or not you need health insurance, you should consider your lifestyle. Do you smoke, and how often do you get sick? It's also a good idea to get a physical examination and a checkup, at the very least twice a year, to make sure that you and your family are in good health. You may be surprised at just what a difference a few simple questions can make when it comes to whether or not you have health insurance.

Why investors were willing to write Robinhood a $3 billion check during the GameStop chaos

Wed, 03 Feb 2021 17:52:48 +0000

Venture capital investors doubled down on investments in Robinhood even as the company scrambled to raise billions of dollars to meet new capital requirements.

options trading strategies

Indexed for growth – The democratisation of thematic indexes

Fri, 25 Sep 2020 12:59:32 +0000

Simon Karaban, head of index services at Singapore Exchange, talks about environmental, social and governance indexes and how the emergence of exchange-traded funds and wealth platforms is democratising thematic indexes, making them more accessible to retail investors

Derivative Valuation

We present an extension of the Garman-Klass volatility estimator that also takes into consideration overnight jumps. Garman-Klass-Yang-Zhang (GKYZ) volatility estimator consists of using the returns of open, high, low, and closing prices in its calculatio

Tue, 30 Jun 2020 22:07:10 +0000

We present an extension of the Garman-Klass volatility estimator that also takes into consideration overnight jumps. Garman-Klass-Yang-Zhang (GKYZ) volatility estimator consists of using the returns of open, high, low, and closing prices in its calculation. It also uses the previous day’s closing price. #volatility #trading #investing #excel #python #derivative #stock

In a previous post, we presented theory and a practical example of calculating implied volatility for a given stock option. In this post, we are going to implement a model for forecasting the implied volatility. Specifically, we are going to use the Autor

Sat, 31 Oct 2020 22:07:18 +0000

In a previous post, we presented theory and a practical example of calculating implied volatility for a given stock option. In this post, we are going to implement a model for forecasting the implied volatility. Specifically, we are going to use the Autoregressive Integrated Moving Average (ARIMA) model to forecast the volatility index, #VIX #volatility #trading #econometrics #python #finance #investing

We are going to present a method for valuing American options using Monte Carlo simulation. This method will allow us to implement more complex option payoffs with greater flexibility, even if the payoffs are path-dependent. Specifically, we use the Least

Sat, 25 Jul 2020 03:07:06 +0000

We are going to present a method for valuing American options using Monte Carlo simulation. This method will allow us to implement more complex option payoffs with greater flexibility, even if the payoffs are path-dependent. Specifically, we use the Least-Squares Method of Longstaff and Schwartz in order to take into account the early exercise feature. The stock price is assumed to follow the Geometrical Brownian Motion. #python #excel #derivative #trading #investing #finance #investment

We are going to discuss valuation of a callable bond. We chose the Hull-White model to describe the interest rate dynamics. We then use a Python program to build a trinomial tree for the risk-free rates #derivative #trading #risk #hedge #python #investmen

Sat, 29 Aug 2020 14:07:12 +0000

We are going to discuss valuation of a callable bond. We chose the Hull-White model to describe the interest rate dynamics. We then use a Python program to build a trinomial tree for the risk-free rates #derivative #trading #risk #hedge #python #investment #bond

Enterprise Fund: Definition, Accounting, Importance, Example

Wed, 20 Mar 2024 01:28:09 +0000

There are several types of funds in governmental accounting, each serving specific purposes and accounting for different activities. These funds fall into three broad categories, including governmental, fiduciary, and proprietary funds. Furthermore, each category can have its classifications. One of the classifications within proprietary funds is enterprise funds.

What is an Enterprise Fund?

An enterprise fund in governmental accounting serves as a distinct financial mechanism to separate activities that closely resemble those of a private business or commercial entity. Unlike governmental funds catering to general government functions, enterprise funds are designated for self-sustaining ventures. These funds operate on a business model, generating revenue by selling goods or services to the public.

In essence, enterprise funds are a specialized accounting tool that enables governments to efficiently manage and track revenues and expenditures associated with business-oriented activities. By delineating these self-supporting ventures, such as utilities and transportation services, governments can better assess their financial viability.

How does the Enterprise Fund work?

Enterprise funds function as specialized financial entities within governmental structures, designed to manage business-like activities independently. The primary mechanism involves generating revenue by selling goods or services such as utilities, parking, or public transportation. The funds operate on a self-sufficiency principle, where the generated revenue covers all associated costs, including operational, maintenance, and capital expenses.

This separation facilitates distinct financial statements, budgeting, and accounting practices, providing clarity in evaluating the financial performance of each enterprise fund. Financial management within enterprise funds encompasses budgeting, accounting for assets and liabilities, and conducting regular performance evaluations. Performance evaluations help assess the efficiency and effectiveness of the funds.

What is the importance of the Enterprise Fund?

Enterprise funds hold significant importance within governmental structures, offering a strategic framework that enhances financial transparency and accountability. By segregating business-like activities, these funds enable clear and distinct financial reporting, providing stakeholders with an inclusive understanding of the performance of each self-sustaining operation. This transparency fosters public trust and facilitates effective decision-making by policymakers.

The direct correlation between revenue generation and associated costs ensures accountability, as financial challenges or successes get attributed to the specific enterprise fund. This separation promotes adherence to accounting standards and reporting requirements, contributing to accurate and reliable financial reporting that aligns with regulatory frameworks. Moreover, enterprise funds play a vital role in promoting efficient resource management and strategic decision-making.

What is the accounting for Enterprise Fund?

Accounting for enterprise funds involves thorough financial management to ensure transparency, accountability, and compliance within government operations. Significant financial statements, such as the Statement of Net Position and the Statement of Revenues, Expenses, and Changes in Fund Net Position, serve as crucial tools for portraying the financial health and performance of each enterprise fund.

Budgeting is crucial, guiding governments in outlining revenue expectations, expense allocations, and capital expenditures for business-like activities. Revenue recognition centers on accurately recording income earned through the sale of goods or services. On the other hand, expenses get recognized as incurred in delivering those services. Asset and liability accounting ensures the balance sheet reflects the infrastructure, equipment, and financial obligations with enterprise funds.

Conclusion

An enterprise fund is a fund category in governmental accounting. This category includes all revenues and expenses from goods or services provided to the public and is self-sustaining. Enterprise funds are highly crucial as they enhance transparency and accountability. The accounting for this fund occurs through the statement of net position and the statement of revenues, expenses, and changes in fund net position.

Originally Published Here: Enterprise Fund: Definition, Accounting, Importance, Example

Modern Portfolio Theory-Searching For the Optimal Portfolio-Portfolio Management in Python

Tue, 26 Jan 2021 17:10:59 +0000

We are going to search for the optimal portfolio, i.e. one that has the highest risk-adjusted return. To do so, we will maximize the portfolio’s Sharpe ratio. The Sharpe Ratio is a financial metric that helps investors determine the return of an investment compared to its risk. The higher the Sharpe Ratio of a portfolio, the better it is in terms of risk-adjusted return. http://tech.harbourfronts.com/modern-portfolio-theory-searching-for-the-optimal-portfolio-portfolio-management-in-python/

Garman-Klass Volatility Calculation – Volatility Analysis in Python

Wed, 01 Jul 2020 16:23:59 +0000

In the previous post, we introduced the Parkinson volatility estimator that takes into account the high and low prices of a stock. In this follow-up post, we present the Garman-Klass volatility estimator that uses not only the high and low but also the opening and closing prices. http://tech.harbourfronts.com/trading/garman-klass-volatility-calculation-volatility-analysis-python/

Valuation of Employee Stock Options is different from regular stock options. In this post, we are going to implement the approach proposed by Hull and White. Specifically, we are going to implement the vesting and forfeiture rate features. Other features

Sun, 02 Aug 2020 21:15:24 +0000

Valuation of Employee Stock Options is different from regular stock options. In this post, we are going to implement the approach proposed by Hull and White. Specifically, we are going to implement the vesting and forfeiture rate features. Other features can also be implemented without difficulty #stock #option #quant #risk #investing #trading #volatility

Another reason for third stimulus checks: Jobless benefits not reaching 8 million people

Wed, 03 Feb 2021 16:58:12 +0000

Three in 4 unemployed workers don't get jobless benefits, making a third round of stimulus checks the best way to offer support, according to a analysis.

options trading strategies

The Weekend Effect in The Market Indices

Mon, 01 Jan 2024 02:11:06 +0000

The weekend (or Monday) effect in the stock market refers to the phenomenon where stock returns exhibit different patterns on Mondays compared to the rest of the week. Historically, there has been a tendency for stock prices to be lower on Mondays. Various theories attempt to explain the weekend effect, including investor behaviour, news over the weekend, and the impact of events occurring during the weekend on market sentiment.

In this post, we'll investigate the weekend effect in the market indices using data from Yahoo Finance spanning January 2001 to December 2023. Specifically we choose SPY, which tracks the SP500, and the volatility index, VIX.

Our strategy involves taking a long position in SPY at Friday's close and exiting the position at Monday's close, or the next business day’s close if Monday is a holiday. The figure below depicts the cumulative, non-compounded return of the strategy.

[caption id="attachment_444" align="aligncenter" width="477"] Cumulative return of holding SPY over the weekend[/caption]

From the figure, we observe that holding SPY over the weekend resulted in negative returns during the GFC, Covid pandemic, and the recent 2022 bear market. The overall return is flat-ish, indicating a low reward/risk ratio for holding the SPY over the weekend.

Next, we analyze the change in the VIX index during the weekend. We compute the change in the VIX index from Friday's close to the close of the next business day and plot the cumulative difference in the figure below. A noticeable upward trend is observed in the cumulative difference. This result indicates that maintaining a long vega/gamma position over the weekend would offer a favourable reward-to-risk trade.

[caption id="attachment_447" align="aligncenter" width="503"] Cumulative difference of the VIX index over the weekend[/caption]

It's important to note, however, that investing directly in the spot VIX is not possible. To confirm and capitalize on the weekend effect in the volatility index, one would have to:

Trade a volatility ETN, or
Trade a delta-hedged option position

Each of these approaches introduces additional risk factors, specifically 1- the roll yield and contango, and 2- PnL originating from gamma and theta. These issues will be addressed in the next installment.

See More Here: The Weekend Effect in The Market Indices

Which System Has The Lowest Risk of Ruin?

Sat, 31 Dec 2022 19:54:07 +0000

Would you rather choose a trading system that wins small amounts most of the time but when it loses, the loss is big? Or would you rather choose a trading system that loses small amounts most of the time but when it wins, the gain is big? In this blog post, we will examine such systems from the risk of ruin perspective.

The risk of ruin is the probability of an investor’s eventual bankruptcy due to a series of losses that exceed his/her capital. It is essential for any trader to understand their risk of ruin, as it will heavily influence the trading system they ultimately develop.

We will use Monte Carlo simulations to perform our analysis. We examine the following 3 trading systems

System	Percent win	Win	Loss	Expectancy
A	10%	$90	$10	0
B	50%	$18	$18	0
C	90%	$10	$90	0

For each system, we generate 1000 trades randomly. If a trade is a win, then we'll make the amount in the column "Win", and if it's a loss, then we’ll lose the amount in the column "Loss". For example, for system A, if we win, we make $90 and if we lose, we lose $10.

To simplify the analysis, we assume that all 3 systems have zero expectancies. The total winning/losing amounts of each system equal $9000. We start with an initial capital of $1000. The figure below shows the first 100 simulated paths for system A. It's clear that the system has zero expectancy as the terminal wealth equals the starting capital.

To calculate the probability of ruin, we first count the number of paths that go below $0 at any time in their evolutions. We then divide the number of such paths by the number of iterations which is 10000.

The table below summarizes the results.

System	Risk of Ruin
A	10.22%
B	0.18%
C	9.95%

We can see from the results that system B has the lowest probability of ruin. This confirmed that traders should avoid systems that have high win percentages but suffer occasional large losses. Short volatility trading systems are in this category. Traders should also avoid systems that have low percentage win rates.

See More Here: Which System Has The Lowest Risk of Ruin?

The best places to buy groceries online in 2021

Wed, 03 Feb 2021 16:04:21 +0000

Shopping for groceries online can be a convenient way to save time.
Our top pick is Instacart because it's widely available nationwide without a membership fee, and you can "shop" locally.
Due to the novel coronavirus pandemic, you may experience delays and low inventory for pantry and cleaning supplies.
Many services have also updated their policies to reduce social interactions, support the shopper community, and more.

Online grocery shopping is an incredibly convenient way to shop without crowded aisles and rogue shopping carts in the parking lot. Though it's not for those who want to pick their own fruit or get the double coupon discount on pasta, shopping for your groceries online is a great way to save time if you're willing to relinquish some control.

Of course, you should expect to pay a bit more than you would if you'd just shopped yourself. Most online grocery stores and delivery programs include subscription costs, delivery fees, and the option to tip your shopper or driver - which we suggest you do. Some services have steeper fees than others, but all are convenient ways to get what you need.

In our guide to the best online grocery stores, we break down all the costs, how the services work, and more, to ensure your produce and pantry items arrive fresh and in a timely manner.

Here are the best places to buy groceries online in 2021

Best online grocery store for shopping local: Instacart
Best online grocery store for bulk items: Boxed
Best online grocery store on a budget: Walmart
Best online grocery store for Amazon Prime members: Amazon Fresh
Best online grocery store for organic groceries: Thrive Market

The best for shopping local

Instacart partners with local grocery and convenience stores in your area, doesn't require a membership to shop, and is available in most zip codes throughout the country.

Instacart

Note: As of 2/3/2021, Instacart has added thousands of shoppers to its community as well as "Fast & Flexible" & "Order Ahead" options to ensure more delivery windows amid fluctuating delivery slot availability and stock shortages. It recommends authorizing replacement products if your item is out of stock and staying by the phone while your order is being fulfilled to answer any questions your shopper may have. It has also introduced a Senior Support Service to provide seniors with extra help setting up an account, navigating the site, and placing an order. Instacart also has a contactless delivery option to allow your shopper to leave your order outside your door.

Pros: Shop via your local grocery store, no membership required, most widely available grocery delivery service

Cons: 5% service fee, delivery fees go up at more popular times

Instacart is the industry leader in grocery delivery, serving 85% of households in the United States and 70% in Canada. Its far reach is due to its strategy of partnering with local grocery stores for distribution, so you can shop local and get the food you need from the stores you already trust and patronize.

To start shopping, you simply enter your zip code and your email address. From there, you select the store you want to shop from — I had 29 options to shop from in my Brooklyn neighborhood including Fairway, Shop Rite, and even non-grocery stores like Petco, CVS, and Target.

You can browse through the store's offerings based on categories like produce, snacks, drinks, etc., or you can search for the item you want using the search bar at the top of the page. If an item is low in stock, you can authorize a replacement product if your shopper can't get their hands on the original item. You can also choose to not replace it, and the cost of the missing item will be deducted from your bill.

With Instacart, your order will be handled by one of their shoppers who goes to the store, shops for your items, and then delivers them to you rather than being fulfilled at a warehouse and then shipped to you via a postal service, so you can expect a bit more care to be taken with your fruits and vegetables.

The service fees are where prices start to mount. There's a baseline $3.99 delivery fee on each order, but if you choose a more popular delivery slot, the fee can jump up to either $5.99 or $9.99. You can get your groceries delivered in as little as an hour or you can schedule them to be delivered to you up to a week in advance. The more immediate slots often have higher delivery fees, so it might be smart to plan ahead and save a couple of bucks.

On top of the delivery fee, you'll see a 5% service fee added to your order, and if your order includes alcohol, there's an additional fee. It's highly suggested that you tip your shopper for their service. If you're putting in a big order and you pick a slot with a low delivery fee, the additional cost will likely be worth it, but it can be hard to justify the extra dollars on small orders.

If you want to eliminate delivery fees, you can sign up for Instacart Express for either $9.99 a month or $99 a year and you'll receive unlimited free delivery for all orders over $35. If you shop frequently, this fee will pay for itself in no time, but unfortunately, you're still on the hook for a service fee — but it will be a cheaper one, starting at 1.9% — and any gratuity you add to the order.

Senior editor Jada Wong has been using the service for six years and Instacart Express for the past four. It's saved her hours of shopping at physical grocery stores and she's never had a problem with shoppers choosing spoiled fruits or vegetables.

Read our full review of Instacart here.

The best for bulk items

Boxed delivers bulk items at discount prices without a membership fee and the delivery fee is waived for all orders over $49.

Boxed

Note: As of 2/3/2021, standard Boxed orders are no longer experiencing shipping delays. However, Boxed Express time slots may fill up quickly and some items may be out of stock. All deliveries of Express orders will be left on your doorstep for contactless delivery.

Pros: No membership required, prices match or beat big-box bulk stores like Costco

Cons: Bulk items and perishable items are delivered separately

When you think of bulk grocery shopping, big-box membership-oriented stores like Costco or Sam's Club probably come to mind. But if you're looking to buy in bulk, save while doing it, and avoid membership fees, Boxed is here to make that a reality. You'll find all your favorite brands in oversized quantities at wholesale prices.

Insider Reviews freelancer Holly Johnson used Boxed to order staples for her family, and she was thrilled to find such low prices. She wrote, "Using Boxed for bulk supplies lets me keep my grocery orders to a minimum while getting good prices on the staples my family loves. I know because I have taken the time to compare pricing for bulk purchases at Costco and Amazon, and Boxed is comparable or better most of the time."

Small and handy perks, including free samples with your order, a group ordering feature, and a convenient reorder feature, also make shopping easier.

Standard Boxed orders — featuring only non-perishables — are packed at the Boxed warehouse and shipped to you, and you'll get free shipping on all orders over $49. If you're looking to add perishable items to your grocery order, you can opt to buy through Boxed Express in certain locations — enter your zip code to see if you're eligible.

With Boxed Express, your order will be hand-delivered in reusable tote bags at a delivery time you choose upon checkout. Boxed Express has a $20 minimum order, and there's a $6.99 delivery fee for orders costing less than $65. Orders of $65 or more are eligible for free delivery. Unfortunately, there's no way to combine the deliveries of your perishable and non-perishable goods because they're supplied through different streams. You can order them at the same time though.

Read our full Boxed review.

The best on a budget

You can get the same low prices with Walmart Grocery as you've come to expect with the big-box store.

Walmart

Note: As of 2/3/2021, Walmart accepts SNAP EBT if you pick up your order. The site also now lets you see and choose your delivery slot before you start filling your cart.

Pros: Prices are the same as in-store, no service fees beyond the $9.95 delivery, free pick-up option, free delivery for Walmart+ members

Cons: Can only schedule for same-day or next-day delivery, can't see delivery availability until after you fill your cart

While many grocery delivery services charge a premium on products, Walmart's prices remain consistent whether you're buying in-store or online for delivery or pick-up, making it the most budget-friendly choice for grocery delivery.

Through Walmart Grocery's online portal or mobile app, you can search for and select groceries from all aisles of the supermarket, from dry goods to frozen pizza to milk, eggs, and produce. A Walmart employee will go through the store and put your order together for you, scanning each item as they go to ensure you get everything you paid for.

Upon checking out, you'll select whether you want to pick up your order from a local store or have it delivered to your home. If you select pick-up, you'll head to the Walmart location you select and pick up your order at whatever time you choose. There's no additional fee to pick up your groceries, so you'll just pay for the items themselves.

Delivery will cost a flat $9.95 with no other service or delivery fees added in, so you don't have to worry about hidden costs stacking up. To eliminate those fees entirely, you can sign up for Walmart+ for $12.95 a month or $98 a year — well worth it if you order groceries from Walmart more than once a month. You do have to meet a $35 order minimum, whether you're a Walmart+ member or not, but a weekly grocery haul should take you over that limit easily. It's also encouraged to tip your delivery person, but it is not required.

You can choose one-hour time slots for delivery on your desired day. If you need your order within two hours, there's an Express option at checkout for select stores.

The best for Amazon Prime members

Access to AmazonFresh is included with your Prime membership, you'll get free delivery on grocery orders over $50.

Monika Skolimowska/picture alliance via Getty Images

Note: As of 2/2/2021, AmazonFresh appears to be back to normal operations. There is an option to select "unattended delivery" upon checkout, which allows your delivery person to leave your groceries outside your door or in a location you specify for contactless drop-off.

Pros: Free access with Amazon Prime membership, free delivery over $50, Whole Foods 365 products available

Cons: Must be a Prime member to order

Not to be confused with Prime Pantry where you can bundle non-perishables and household goods in order to qualify for Prime shipping, AmazonFresh is a standalone service and Amazon's answer to the digital grocery stores like Walmart Grocery and Instacart. Unlike Prime Pantry, AmazonFresh allows you to order produce, dairy, meats, and other perishable items on top of pantry staples and dry goods.

You'll have to be a Prime member to access AmazonFresh, so if you're not already paying the $119 annual fee for Prime, you might be better off checking out one of the other grocery delivery services in our guide. You can also sign up for a free 30-day trial to take advantage of AmazonFresh as well as more than 20 other benefits.

If you're a current Prime member, AmazonFresh is by far the most affordable way to get groceries delivered. Orders over $50 ship free while orders under that threshold incur a $9.99 delivery fee, so you're best off meeting the minimum in order to save yourself some extra money.

The interface looks exactly like you're shopping on Amazon — because you are. Scroll through carousels of categories like produce, meat, and snacks, or use the search bar at the top of the page to find exactly what you're looking for. Each item has a quick-add button that places the item right in your card. Because Amazon owns Whole Foods, you'll also be able to order Whole Foods' 365 brand from options trading strategies

We are a boutique financial service firm specializing in quantitative analysis, derivative valuation and risk management. Our clients range from asset management firms to industrial, non-financial companies. Our services include: Valuation of financial de

Sat, 14 Nov 2020 13:50:46 +0000

We are a boutique financial service firm specializing in quantitative analysis, derivative valuation and risk management. Our clients range from asset management firms to industrial, non-financial companies. Our services include: Valuation of financial derivatives such as convertible bonds, mortgage backed securities, variance swaps, credit default swaps, collateral debt obligation #finance #derivative #risk #hedge #accounting #quantitative #trading #investing

How Often Do Credit Card Frauds Get Caught?

Fri, 08 Jan 2021 16:25:14 +0000

How often do credit card frauds get caught? Every day thousands of dollars are lost by American consumers to fraudsters. Some people will try their luck on a huge scale, some will use just a few stolen credit cards and some will use one card as a sieve to sieve through the contents of another card. The sad fact is that most honest people do fall victim to credit card fraud.

To understand how often do credit card frauds get caught, it is good to know what the credit card companies do to protect themselves. All major companies make online transactions possible to ensure that they keep their businesses running. This can be done easily with encryption technology, which is built into all credit cards and the computer systems which process the information. Once this security has been put into place, the company cannot be robbed at any time, not even when the victim's personal details are no longer available. This is a measure adopted by all major credit card companies to make online transactions safe.

If you are an adult, you should be worried about how often do credit card frauds get caught if your parents' credit cards are lost or stolen. Most credit card companies will contact the cardholder and advise them of any unauthorized transactions made using their card. You will normally be charged for these charges and some companies may even add a small charge for informing them of the fraudulent activity. If you are still using the card, you will have to cancel it and inform the fraud department. They will investigate and will either cancel your card or recover it.

Another common way, how often do credit card fraudsters get caught is through the mail. Spammers will make use of the post office to send out unsolicited cards. Some will also target mail that contains sensitive personal information that can only be accessed by the owner. They may steal your address and other details to make online transactions more convenient for themselves.

Many people do not report credit card frauds because they are embarrassed or do not want to believe that they have been a victim. It is therefore important for you to understand how often do credit card frauds get caught before you inform the police or your bank. This way, you will be in a much better position to tell them what has happened and help them to take the appropriate actions.

How often do credit card frauds get caught also depends on how you use your card. If you are not planning to make online purchases, you will not get riled by a sudden charge. But if you tend to buy stuff online on a regular basis and keep track of your purchases, then chances are high that you will end up as a victim. Remember that there are many ways you can commit card fraud, but you can avoid these by following the rules set by your bank and the issuer of your card.

Valuation of Warrants-Derivative Pricing in Python

Wed, 19 Aug 2020 19:41:41 +0000

A warrant is a financial derivative instrument that is similar to a regular stock option except that when it is exercised, the company will issue more stocks and sell them to the warrant holder. The valuation of warrants is similar to the valuation of stock options except that the effect of dilution should be considered. http://tech.harbourfronts.com/derivatives/valuation-warrants-derivative-pricing-python/

Can Health Insurance Premium Be Deductible?

Sun, 16 May 2021 16:18:37 +0000

You may have come across the term “Deductible” in reference to medical insurance and wondered what that means. A deductible is a payment made to the insurance company at the time of signing up for an insurance plan. The deductible amount can vary from plan to plan but is usually equal to the monthly premiums you pay. Insurance companies either include the deductible in the cost of your coverage, or they will take it out of the money you pay yourself. It is important to understand how much of the deductible will be before you select a policy.

You may wonder why you have to pay a deductible if the insurance company is not going to cover the entire amount. There are a few different reasons for this. First, the deductible is often a minimum payment required by law. It is really an additional fee you have to pay to get medical coverage. The insurance company will cover the rest.

Second, you may have agreed to a deductible that is less than the total amount of your insurance. If you have taken a policy that has a lower deductible, you may agree to higher deductibles to save money. However, you may also have signed up with a plan with a standard deductible amount. It is important to remember that standard deductions are always adjusted for inflation.

When you start your application, the medical underwriter will ask to see your deductible history. They will look at how much you have already paid in deductibles and whether you have maintained the level you were at when you applied. If you have not made any adjustments in deductibles and your premium has not increased, your rates will stay the same. If you have made adjustments, it will not reduce your policy unless they are below the lowest rate that would apply.

In addition, there are a few other circumstances that may allow you to deduct a portion of your insurance premium. If you are insuring more than one person, such as your spouse and/or children, your premium can be greater than the premiums of the primary policy. If you are insuring your home with the same insurance company, then your insurance company may allow you to deduct a percentage of your home's value if your house is in a particularly good neighborhood. If you have a good driving record and spend a small amount of time outside of your home, your premium can be deducted. There are a few other situations that will allow you to make some deductions before taxes are due.

You will want to check with your agent to see what other ways can the health insurance premium be deducted. You may be surprised at all the options available to you. It is a good idea to gather as much information as possible before you start making decisions. This will help you make the best possible choices for your situation.

What value does quantitative investing actually create for society? Quantitative investing is about arbitraging the small inefficiencies, so maybe it will make prices slightly more efficient. But is that worth the enormous infrastructure investment being

Fri, 13 Nov 2020 15:20:09 +0000

What value does quantitative investing actually create for society? Quantitative investing is about arbitraging the small inefficiencies, so maybe it will make prices slightly more efficient. But is that worth the enormous infrastructure investment being spent on it? #derivative #trading #risk #stock #option #finance #market #investing #quant

Barstool's Dave Portnoy says he lost $700,000 on 'meme stocks' like GameStop and AMC: Robinhood CEO 'stole it from me and should be in jail'

Wed, 03 Feb 2021 16:10:04 +0000

Dave Portnoy in 2017.

Slaven Vlasic/Getty Images

Barstool Sports founder Dave Portnoy said he lost $700,000 on "meme stocks" like GameStop.
Portnoy tweeted that the CEO of the trading app Robinhood "stole it from me and should be in jail."
The stock market is reeling from a frenzy kicked off by a group of Redditors.
Visit Business Insider's homepage for more stories.

Barstool Sports founder Dave Portnoy said on Tuesday that he had lost about $700,000 on "meme stocks" like GameStop.

Portnoy tweeted that he had officially sold all the stocks he purchased. He admonished the trading platform Robinhood and its CEO, Vlad Tenev, for preventing users from trading the stocks driven by the Reddit-fueled buying spree.

"Vlad and company stole it from me and should be in jail," Portnoy tweeted.

—Dave Portnoy (@stoolpresidente) February 2, 2021

Portnoy's losses came on the heels of a stock-market frenzy drummed up by a group of people on Reddit who bought up stocks like GameStop, driving up the companies' values. Many people used trading apps like Robinhood to join in on the rally. Robinhood saw a surge in new members and was forced to temporarily stop users from buying shares of GameStop, AMC, and others; it said it was complying with financial requirements.

The move angered many of the app's users and lawmakers like Rep. Alexandria Ocasio-Cortez. Robinhood allowed the trading to resume but added limitations for 50 stocks, including GameStop - Robinhood said it would cap the number of GameStop shares that users could buy at 20.

Robinhood has raised more than $3 billion in emergency investments so far to compensate for the surge in trading on its platform. Tenev has defended the company's initial decision to halt the trading of certain stocks and said Robinhood was not struggling with liquidity issues.

And Tenev told Tesla CEO Elon Musk in an interview on Sunday that Robinhood was forced to restrict trading for users because the surge prompted the National Securities Clearing Corporation to ask for a $3 billion deposit.

Correction: This post has been updated to say Portnoy was critiquing Robinhood's decision to restrict the trading of certain stocks.

Read the original article on Business Insider

options trading strategies

11 choices that shaped our favorite games, from glitches in 'Street Fighter II' to Zelda's name

Wed, 03 Feb 2021 16:12:58 +0000

The Italian plumber was originally named Jumpman.

Nintendo

From character names to genre changes, the most popular video games hide interesting origin stories.
Lara Croft was initially a supporting character while Mario was once called Jumpman.
From "Metal Gear" to "Mortal Kombat", these choices forever shaped the world's favorite video games.
Visit Business Insider's homepage for more stories.

It's a struggle to imagine a video game world where Mario isn't called "Mario" or Lara Croft isn't the protagonist of "Tomb Raider."

But the games we know and love today could easily have been very different.

From the creative choices behind the color scheme of Sonic's sneakers and the naming of the "Final Fantasy" series to the inspiration behind Princess Zelda's name, here are some of the decisions that shaped the world's biggest video games.

Mario wasn't always called Mario

Jumpman resembled the landlord of the warehouse Nintendo was renting, Mario Segale.

Nintendo

He's one of the most popular video game characters ever and the official mascot of Nintendo — but Mario almost wasn't called Mario.

The Italian plumber was originally named Jumpman when "Donkey Kong" launched on the Japanese market. However, the makers wanted to broaden their horizons when the product launched in the US and thought about real names.

According to PC World, Minoru Arakawa, then-president of Nintendo in the US, realized Jumpman resembled the landlord of the warehouse Nintendo was renting at the time. The man was called Mario Segale, and so "Mario" stuck.

Since his launch, Mario has gone on to star in the "Mario Kart" franchise and the hit "Super Mario Odyssey", which even pays tribute to "Donkey Kong."

Sonic's sneakers were inspired by Michael Jackson

While Sonic is blue to reflect the company color scheme, few know why sneakers are red and white.

Paramount/Sega

When the video game developers at Sega were creating a character for Mario to go up against, they dreamt up Mr. Needlemouse, although he later became Sonic.

The reasoning behind the color scheme was explained by character designer Naoto Ohshima in an interview with Gamasutra: "I also thought that red went well for a character who can run really fast when his legs are spinning."

Although the hedgehog is blue to reflect the company colors, few know that his red and white sneakers were inspired by the cover of Michael Jackson's album "Bad."

The combos in Street Fighter II were an accident

The combos are now a defining feature of the franchise.

Capcom

If the first installment of the "Street Fighter" franchise laid the foundations for its popularity, the second catapulted it to superstardom with its killer combinations.

The team accidentally stumbled upon the combos, which allowed users to carry out basic and special moves in a sequence, Paste Magazine reported.

The combos are now a defining feature of the franchise and have been repeated time and time again.

Final Fantasy really was meant to be final

Before the game launched, video game developer Square was about to go under.

Square Enix

With more than 15 video games now in the franchise, it's hard to believe "Final Fantasy" was a product of difficult circumstances.

Before the game launched, video game developer Square was about to go under.

Square's former president, Hironobu Sakaguchi, named the game "Final Fantasy" because he planned to leave the video game industry if it didn't work out.

More than 33 years later things still don't look very final.

It wasn't always clear Samus from 'Metroid' would be a woman

It was in the 1980s that "Metroid" broke a trend of male-dominated characters.

Neilson Barnard/Getty Images

In 1986, Nintendo launched a game that became a key part of its Nintendo Entertainment System (NES).

While female protagonists are now increasingly common in the video game world, back then it was "Metroid" that broke a trend of male-dominated characters.

The gender of female protagonist Samus Aran isn't revealed until the very end of the game when she removes her armor and shows herself for the first time.

Series co-creator Yoshio Sakamoto told IGN the decision was made when, during a development meeting, a staff member said: "Hey, wouldn't that be kind of cool if it turned out that this person inside the suit was a woman?"

Samus continues to be popular, with the remake "Metroid: Samus Returns" released in 2017, and a new game "Metroid Prime 4" announced, although Nintendo decided to restart development in 2019 after it failed to meet quality standards.

McDonald's and Mike Tyson in 'Punch Out!!'

Mike Tyson Tries to Beat Himself in "Punch-Out!!"

YouTube / The Tonight Show Starring Jimmy Fallon

Perhaps the funniest fact about "Punch Out!!" is that the short and feisty 17-year-old boxer character Little Mac derives his name from the McDonald's classic.

However, Mike Tyson's involvement gave "Punch Out!!" a whole new significance.

Minoru Arakawa, then-president of Nintendo in the US, was determined to include Tyson in the game as he saw a lot of potential in him.

They released Mike Tyson's "Punch Out!!" in 1987, and Uproxx claims Tyson was only paid $50,000 for his image to be used.

The game's Mike Tyson is notoriously difficult to beat — even the boxer himself couldn't do it.

Jean-Claude 'Mortal Kombat' Van Damme

D'Vorah, introduced in "Mortal Kombat X." The "Mortal Kombat" saga began in 1992.

"Mortal Kombat 11"/NetherRealm Studio

The famous "Mortal Kombat" saga, which now includes 11 installments, began in 1992 but initially was meant to be totally different.

Centering around Belgian actor Jean-Claude Van Damme, the original plan was to create a game based on the film "Universal Soldier" and have him fight against hundreds of colorful enemies.

However, negotiations with the actor didn't go well, Mel Magazine reported, and creators Midway decided to completely rebrand it, turning it into one of the most violent games of all time.

The franchise did however include Johnny Cage, a character inspired by Van Damme.

Originally, 'Metal Gear' wasn't a stealth game

"Metal Gear" was born after Kojima was inspired by 1963 classic "The Great Escape."

Konami

Now one of the most famous stealth games in video game history, "Metal Gear" wasn't initially about stealth at all; it was originally intended exclusively as an action game.

However, the limited tech at the time didn't quite accommodate designer Hideo Kojima's storyline and themes.

"Metal Gear" was born after he was inspired by 1963 classic "The Great Escape," which tells the story of how a group of soldiers plans to escape from a prison camp.

Lara Croft wasn't the main character of 'Tomb Raider'

Directed by Roar Uthaug.

Warner Bros. Pictures

When Core Design and Eidos Interactive first presented "Tomb Raider" in its early stages, the main character looked a little too much like movie archaeologist Indiana Jones — for whom they obviously didn't have a license.

To make the character stand out, designer Toby Gard proposed promoting a secondary female character to lead status, replacing the original idea.

They decided to go with it and created the image of Lara Croft as we know her today, with her trademark shorts and signature braid. The rest is history.

Zelda's namesake is a novelist's wife

The "Legend of Zelda" franchise is now hugely successful.

Nintendo

The name of Princess Zelda from "The Legend of Zelda," now a classic on NES, has an interesting literary origin.

Princess Zelda's name was inspired by Zelda Fitzgerald, the wife of "The Great Gatsby" novelist F. Scott Fitzgerald.

Shigeru Miyamoto of Nintendo said he liked the sound of the name and so it stuck.

The franchise is now hugely successful, with several new installments including 2019's "Legend of Zelda: Breath of the Wild."

'Resident Evil' started out as a remake of 'Sweet Home'

"Resident Evil: Village" will be coming to PS5 this year.

Capcom

Now one of the most popular horror franchises and the starting point for the survival horror genre, "Resident Evil" was originally going to be a remake of 1989 Capcom classic "Sweet Home."

However, the makers decided to go bigger, changing their idea from a first-person shooter to a third-person one. They took inspiration from the Overlook Hotel of "The Shining," and from other movies featuring haunted houses.

Read the original article on Business Insider

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House Republicans aim to remove Rep. Ilhan Omar from committees instead of Rep. Marjorie Taylor Greene

Wed, 03 Feb 2021 16:36:11 +0000

Rep. Marjorie Taylor Greene; Rep. Ilhan Omar

Erin Scott-Pool/Getty Images;Kent Nishimura/Los Angeles Times via Getty Images

House Republicans came up with a tit-for-tat response to calls for reprimanding Rep. Marjorie Taylor Greene.
Some in the GOP want Democratic Rep. Ilhan Omar to be punished instead of Greene.
Greene faces calls for committee removal over conspiratorial rhetoric involving violence.
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While House Democrats prepare to strip Rep. Marjorie Taylor Greene from her committees, some GOP lawmakers have fired back, suggesting that Rep. Ilhan Omar be removed from her panels instead.

Democrats unveiled a measure this week to drop Greene from the House Education and Labor Committee and House Budget Committee over concerns she amplifies conspiracy theories and has endorsed political violence, according to recent reports on her past social media activity.

However, Texas Rep. Brian Babin on Tuesday proposed an amendment to the resolution that would replace Greene's name with Omar's, Forbes reported.

"If the Democrat Majority wants to go down this road, they should start by dealing with their own members who have been at this before and AFTER their election to Congress," Babin tweeted on Tuesday.

A handful of GOPers have backed Babin's resolution, including fellow Texas Rep. Ronny Jackson as well as Reps. Andy Biggs of Arizona and Jody Hice of Georgia, according to Forbes.

Babin's office did not immediately return Insider's request for comment.

Since Democrats control the House majority, Babin's proposal remains a remote outcome that likely won't happen.

Omar, who represents Minnesota's 5th Congressional District and is one of the first Muslim women elected to Congress, faced criticism shortly after she took office in 2019 over her tweets about Israel. Omar said Republicans' support of Israel was "all about the Benjamins," a reference to the financial influence of Jewish lobbying groups that plays into anti-Semitic tropes.

Several Republicans and Democrats condemned her statements as anti-Semitic. Omar apologized and said that her intentions were "never to offend my constituents or Jewish Americans as a whole." The House later passed a resolution to condemn all forms of bigotry, including anti-Semitic tropes.

Following the calls for her to be sanctioned, Omar fired back at Congressional Republicans in a tweet, describing the move as "whataboutism."

—Ilhan Omar (@IlhanMN) February 2, 2021

"Stop whitewashing the actions of the bigoted conspiracy theorists, violent insurrectionists and fascist cult followers of Trump," Omar tweeted.

Greene, a freshman Republican of Georgia, has been at the center of backlash in recent weeks due to her past controversial comments. She has suggested on multiple occasions that mass shootings have been orchestrated to promote gun control. She previously "liked" a Facebook post that claimed the 2018 Parkland school shooting, which killed 17 people was a "false-flag" operation, watchdog group Media Matters revealed last month.

The lawmaker has also been linked to several other baseless theories, including QAnon, Pizzagate, and has falsely claimed that an airplane never hit the Pentagon on 9/11. Greene has a history of making racist and Islamophobic remarks, and CNN reported that she had previously endorsed calls to execute lawmakers, including House Speaker Nancy Pelosi.

In light of the statements, Pelosi urged House Minority Leader Kevin McCarthy to take action against Greene and stop her from serving on her assigned committees. The top Democrat offered the Republican leader 72 hours to act, otherwise, she would move forward to remove Greene from the panels. McCarthy hasn't made any such move to do so as of Wednesday morning. The House Rules Committee is scheduled to consider the resolution at 3 p.m. on Wednesday.

Greene has received backlash from both sides of the aisle. Senate Minority Leader Mitch McConnell this week called her "loony lies and conspiracy theories" a "cancer" to the GOP. Other Republicans, including Sens. Joni Ernst of Iowa and Mitt Romney of Utah, have echoed his remarks.

House leadership bristled at the comparison.

"There's absolutely no analogy to any member on our side of the aisle, period," House Majority Leader Steny Hoyer said Wednesday, according to pool reports. "Any analogy that they try to make is a specious one."

Read the original article on Business Insider

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A disadvantage of using the CCHV is that it does not take into account the information about intraday prices. The Parkinson volatility extends the CCHV by incorporating the stock’s daily high and low prices. #trading #volatility #hedging #risk #vix #inves

Mon, 01 Jun 2020 02:07:09 +0000

A disadvantage of using the CCHV is that it does not take into account the information about intraday prices. The Parkinson volatility extends the CCHV by incorporating the stock’s daily high and low prices. #trading #volatility #hedging #risk #vix #investing #stock #investment

Dow dips more than 100 points, falling for the first time in 3 days

Wed, 03 Feb 2021 15:45:05 +0000

On Tuesday, the Dow Jones Industrial Average gained more than 475 points.

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Compare Credit Cards vs Line of Credit to Find Out Which Offers Offer You the Cheapest and Most Convenience

Sun, 10 Jan 2021 14:04:53 +0000

Getting the best credit card deals is a challenge that many Americans face every year. The constant changes in the financial industry can make choosing a credit card difficult for many consumers. Credit cards offer many benefits, but there are differences between the different credit cards and their respective limits of credit. Most credit card companies are competing to offer you the best credit card deals possible. In order to get the best credit card offers, you need to take a look at how those cards benefit you.

Some credit cards limit your purchases to a specific dollar amount each month. This limit is usually set for a certain number of months. However, many credit cards offer a credit card that allows you to pay no interest while using your credit card balance for purchases. This can save hundreds of dollars per month, depending on how much you use your credit card. If you have good credit, this may be an attractive credit card benefit for you.

Another credit card or line of credit comparison is a revolving credit card that allows you a credit limit of credit whenever you spend money. You can increase the credit limit as much as you like for an unlimited period of time. These types of credit cards generally do not come with any annual fees, but there may be a balance transfer fee at the end of your introductory period. This means that even though you will have interest charged on your balances, you will also have to pay that fee.

Some credit card companies offer cashback rewards programs. These programs can provide cashback on almost all purchases. They vary from credit card companies to credit card companies. You can find credit cards that give you cashback on gas, groceries, department store items, airline tickets, and other purchases. This type of credit card allows you to save money by buying things that you already know you would buy if you had the money.

If you are currently looking for a credit card, one of the best things that you can do is compare credit cards vs line of credit to determine which offers are the best deal. Look at the APR, or Annual Percentage Rate, to determine if this type of credit card is a good choice for your needs. Remember, the APR only tells you what the interest will be, not the total cost. The amount of interest that you pay is the cost you will pay on the entire outstanding balance. This is the most common reason why people look for lower credit limits. If you find the credit card with the lowest balance that has the lowest APR that also has an emergency funds feature, you can save money because you will have money in reserve when an emergency arises.

In addition, you should consider the transfer charges between credit cards. Some credit cards include an annual fee when transferring balances. This can add up to a large amount over the life of the loan, so you may want to look into all options before signing up for a credit card. Remember that just because there is a lower APR does not mean that it will have the same service as a higher APR. Most credit cards offer different incentives and rewards programs. Shop around to determine which offers are going to offer you the most convenience while saving the most money.

This optical illusion discovered by a Japanese psychologist tells you if you have curvature blindness

Wed, 03 Feb 2021 16:25:28 +0000

This is an automated machine translation of an article published by Business Insider in a different language. Machine translations can generate errors or inaccuracies; we will continue the work to improve these translations. You can find the original version here.

Optical illusions make you rethink whether what you are seeing is real or not - therein lies their charm.

However, some of these visual tricks could go further and give you information about your own eye health.

There is an optical illusion discovered by experimental psychologist Kohske Takahashi of Japan's Chukyo University in 2017 capable of telling you if you suffer from curvature blindness, ScienceAlert reports.

6 ways to improve eyesight naturally and protect your vision

The findings published in i-Perception explain that not everyone sees the lines in the image above in the same way.

Look again if you need to. Do you see straight lines, wavy lines, straight lines, curved lines, zigzag lines perhaps?

Takahashi explains the importance of not always trusting what your eyes tell you when you look directly at something, as they sometimes create confusing images in your brain.

Most people see wavy, zigzag lines arranged in alternating pairs along the central gray area of the image.

40 mind-blowing optical illusions that have baffled half the world.

However, if you look at the lines at the ends where the background is black or white and you see all the lines in that area wavy, but some of the lines in the gray area are still pointy, you are suffering from curvature blindness. Don't worry, it's not a medical condition.

The reality is that all the lines in the image are curved, so Takahashi explains that this distinction in the brain could be a consequence of the way the eyes differentiate curves and corners in the real world, creating a conflict.

"We think that the underlying mechanisms for smooth curve perception and those for obtuse corner perception are competing with each other in an unbalanced way," Takahashi explains in his paper. "The corner percepts may be dominant in the visual system."

Harvard team of scientists successfully restores vision in mice

But why do you see zigzag lines? Takahashi has pointed out in The Telegraph that this may be because both the brain and the eyes have become better adapted over the years to recognize sharp shapes more easily than curved ones.

"We are surrounded by artificial products that have many more corners than the natural environment, and therefore our visual," adds the psychologist. "This visual phenomenon does not cause problems in our daily lives."

In addition, there are factors that contribute to generating this optical illusion, such as the shallowness of the wave and its smoothness, or the colors of the lines, where those arranged in zigzags have colors that accentuate the vertices, creating points of inflection.

Read the original article on Business Insider

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