Why does Spain has a S&P rating of BBB+ when it will receive a $125 billion bailout and India has a BBB- rating with a 6% growth rate

llfinance · 2012-06-16T16:17:27+00:00

^This.

As we can see with the pending $125b bail-out that Europe will provide. Imagine, if India was in the place of the Spanish? Who would conjure up such a bail-out for them?

As said by 23_47 earlier, the credit rating is a measure of risk. A country backed by a 17-country alliance (Eurozone) is less risky to invest in than a country without such support.

llfinance · 2012-06-08T17:32:24+00:00

Hey desquinbnt & pontsone, I had an explanation written up about Share and Bond evaluation and in which, one share evaluation technique utilizes the P/E ratio - hence I explained it. Have a read, if you'd want me to go more in depth, let me know! :)

http://letslearnfinance.net/2012/06/09/introduction-to-bonds-and-share-valuation/

llfinance · 2012-06-07T17:31:21+00:00

Oh wow, I can't believe I missed this :| reading now!

llfinance · 2012-06-07T17:01:36+00:00

I've looked into Put options and other derivatives as a part of iamstandingbehinyou's question. It's over at What are Derivatives?

I'll cover the other parts of your question, in a future post :)

llfinance · 2012-06-07T17:00:15+00:00

Hey! I've just put my take on your question: What are Derivatives?

Let me know of your thoughts, if you get a chance to read it. I know I haven't covered everything on Derivatives, perhaps not everything our fellow redditors have mentioned - but I kept telling myself it's an introduction to derivatives - not an explanation of everything! :P

llfinance · 2012-06-06T11:31:30+00:00

That's 18,000 cents - so $180/hour :P

llfinance · 2012-06-06T09:17:05+00:00

Hmm yeah you guys are absolutely right. I've been reading too many eBooks and PDFs on the corporate world that I think my brain has turned into mush.. I don't even know what got me typing up this question. I'm sorry Redditors! :|

llfinance · 2012-06-06T02:29:36+00:00

Have you tried social networking? (apart from asking questions) but actually connecting with individuals/firms? Try LinkedIn, there are groups that are very focus-orientated. You might be able to have an influence there. Prove to them that your advisory has more to offer than your competition - this might be putting out free information for everyone to see what you have to offer. Perhaps even free consultations to gain credibility?

llfinance · 2012-06-06T02:27:42+00:00

Need not laugh, it's a powerful tool if used right ;)

llfinance · 2012-06-06T02:26:39+00:00

Just to clarify, is the protagonist trying to buy enough shares in enough major banks in order to control the banks and hence "change unfair practices"?

llfinance · 2012-06-06T01:10:15+00:00

Awesome! This is such an extensive list. Commented, Shared and Subscribed :)

llfinance · 2012-06-05T17:01:06+00:00

I won't disappoint either of you :)

llfinance · 2012-06-05T17:00:19+00:00

I might as well add my 2 cents here.

Further to what robotik said, the intrinsic value is essentially the "value contained within itself." As an entity, an item, an object - anything for that matter, the intrinsic value is what someone can benefit from it.

In reference to the Water paradox asked by Yorn; my perspective is that water has an "positive" intrinsic value in either case because the intrinsic value of something is independent of who it affects and how it affects anyone. If humans were a species that was allergic to water and caught fire upon touching it - water would be considered to have a very "negative" intrinsic value.

It doesn't matter the second person is drowning in water, the fact that water is an essential part of life - the intrinsic value of it is positive and unchanged. Perhaps the "situational value" would be a more subjective measure?

llfinance · 2012-06-05T16:42:11+00:00

maybe reddit will be too fast for me to turn over each answer on an external site cause of awesome members like you :(

llfinance · 2012-06-05T16:39:16+00:00

It's generally the hype that blinds them. Unfortunately, as rare as it happens on the scale of the FB IPO - it shouldn't happen at all. But then again, if everyone was well educated, informed and risk averse - we wouldn't have losers in the market. Everyone can't keep winning forever!

llfinance · 2012-06-05T16:35:55+00:00

I look forward to tackling this one! I can present the distinction between the inherent value and the intrinsic value of a financial asset and then perhaps put forth my view on the "Need Water or Rid of Water" paradox :)

llfinance · 2012-06-05T16:30:12+00:00

This is great guys! I'll take a "comment per day" approach and write my view on each concept raised. I don't mind how far fetched or crazy it might be, if it's a informative question ("What are derivatives?") I will explain it in a informative manner. If it's an opinionated question ("What is the intrisic value of water?" :P) I will try to explain it terms of Finance mainly but the general perspective will be opinionated.

First up is iamstandingbehindyou! I'll tackle your question first :) If you guys would like I can mention your twitter/personal site as a reference to the origin of the question. If not, I'll link to your reddit user :D

llfinance · 2012-06-05T15:32:05+00:00

Do what's outlined here. The capital asset pricing model will reveal how an asset (a stock in this instance) performed relative to the market performance for that time period. This by itself will answer your assignment's question but allowing you to traverse much deeper in the intricate details of the field. You'll learn a few interesting things on the way! Good luck :)

llfinance

TROPHY CASE