5 things I learned today #2



I had fun with my 5 things yesterday's so I am doing it again.

Five things I learned today:



Volume of equity options traded with the Options Clearing House (OCC )is over 10 times that of non equity traded options.  This ratio has stayed relatively constant since 2000.  Data source: OCC. http://www.optionsclearing.com/webapps/historical-volume-query (Sept 26, 2013)



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5 things I learned today



I have decided I need to get back to blogging more.  I am not sure where the time will come from, but has to happen, so:



Five things I learned today:





 Diversified firms have less underpricing in IPOs.  This may be caused by signaling quality by the more focused firms. 


The source of this new knowledge is: “Industrial Diversification and Underpricing of Initial
Public Offerings” with

Where Did 6 Million Missing Workers Go? | The Exchange - Yahoo Finance

Where Did 6 Million Missing Workers Go? | The Exchange - Yahoo Finance:

"The other reason is a surprising pullback in the portion of Americans who even want to work. The labor-force participation rate is declining for a variety of reasons, such as younger people going to college or graduate school instead of looking for a job, and out-of-work middle-aged people who simply give up looking for a

Portfolio math for class


I am loving these videos.  Nice for students to prep for class and to review after.  Feel free to use.


Citigroup sheds more than $6 billion in PE, hedge fund assets: WSJ - Yahoo! Finance

Citigroup sheds more than $6 billion in PE, hedge fund assets: WSJ - Yahoo! Finance: (Reuters) -

"Citigroup Inc (NYS:C) has sold more than $6 billion in private equity and hedge fund assets in the past month to comply with new regulations that limit such investments, the Wall Street Journal reported, citing people familiar with the transactions."

What's an indifference curve?



More class videos:  topic is "what is an indifference curve and how does it relate to diversification?"


What is a put?


Another derivatives video for my classes.  Today's topic: what is a put contract?




A NPV (Net Present Value) refresher



Here is a fast whiteboard video I made to remind my class what NPV is.  

Derivative payoff Diagrams


Working to get ready for the new semester by making some videos in advance.  Here is an attempt using Educreations an online white board app.  Seems VERY easy to use/share.  This was very first attempt with zero script etc. 

Introduction to financial derivatives



We have a new video/class capture program that I was playing with today.  Can't quite figure out how to export to YouTube yet, but here is a link

Hedge Funds And S&P 500 Nearly Identical - Business Insider


Hedge Funds And S&P 500 Nearly Identical - Business Insider:

This one surprised me.  I was expecting the normal "Hedge funds don't outperform" article but this is much better.  It shows that hedge funds while not outperforming indexes, have (on average) had lower risks.

A look in:


" ...the path of achieving the 8.6% return would have been dramatically different between these two. The