investors

19Nov

By THEIRL1ADMIN01No Comments

CRYPTOMARKET, IN OTHER NEWS

Dramatic Collapse Of The Cryptocurrency Exchange FTX Contains Lessons For Investors But Won’t Affect Most People

In the fast-paced world of cryptocurrency, vast sums of money can be made or lost in the blink of an eye. In early November 2022, the second-largest cryptocurrency exchange, FTX, was valued at more than US$30 billion. By Nov. 14, FTX was in bankruptcy proceedings along with more than 100 companies connected to it. D. Brian Blank and Brandy Hadley are professors who study finance, investing and fintech. They explain how and why this incredible collapse happened, what effect it might have on the traditional financial sector and whether you need to care if you don’t own any cryptocurrency. 1. What happened? In 2019, Sam Bankman-Fried founded FTX, a company that ran one of the largest cryptocurrency exchanges. FTX is where many crypto investors trade and hold their cryptocurrency, similar t...

Investors Selectively Forget Their Money-Losing Stocks – They Often Have A Biased Memory – Why Are They So Cocky?

Philip Fernbach, University of Colorado Boulder and Daniel Walters, INSEAD The Research Brief is a short take about interesting academic work. The big idea Stock investors mistakenly remember their past investments as better than they actually were, which leads them to be overconfident about how they’ll perform in the future, according to our new study. Past research has shown that investors tend to be very overconfident. But there’s been little explanation as to why. We wondered whether a biased memory might play a role. So we recruited about 900 investors – mostly men, who dominate the finance industry – through online forums and panels and conducted three studies. In the first, we asked 401 investors a series of questions intended to estimate their level of overconfidence, glean the...

Unlikely To Work Anyway But Why Wall Street Investors’ Trading California Water Futures Is Nothing To Fear

Water is one of the world’s most vital resources. So is there reason to freak out now that profit-hungry hedge funds and other investors can trade it like a barrel of oil or shares of Apple? That’s exactly what CME Group recently did in California when it launched the world’s first futures market for water in December 2020. Put simply, a futures market lets people place bets on the future price of water. Some people worry Wall Street’s involvement in trading water will disenfranchise the water rights of rural communities and lead to more scarcity of an already dwindling resource, thus driving up the price everyone pays. As researchers who study commodity markets and the economics of water resources, we believe there are many benefits of a well-functioning water futures market, especial...