Guide to Currency Pt. 1
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Currency is the centre of all business and commerce around the globe. Whether you are working in or running a small business or a large multi national corporation you will need to understand the differences between different currencies around the globe. This guide will give you the currency basics, detailing exchange rates and forms of money which you will encounter.
The American Dollar 
Nearly every central bank in the world holds some reserve of American dollars and its continued popularity makes it easily the most important currency in the world. It is the most popular traded currency on the Forex (the world's largest market) and is often used to support triangular deals involving other currencies. When countries look to stabilise their rates of exchange they will often do so by fixing their own currencies rates to that of the dollar.
The Euro
The second most traded currency is, unsurprisingly, the Euro as it is used by 17 nations across Continental Europe. Like the dollar the Euro is also used by many developing nations to stabilise their own currency's exchange rates. Though has only existed on the world market since 1999 and though recent economic events have lead to uncertainty about the future of certain Eurozone nations, the currency remains popular and is widely used to secure deals in the Forex.
The Yen
Japan's Yen is by far the most dominant currency in Asia, a testament to Japan's economic consistency since the 1980's. In fact, many financial experts look the value of the Yen as a benchmark for the economic performance of the entire Continent. Purchasing of the Yen has always been popular on the Forex as, throughout the 1990s and 2000s, the currency had a zero percent interest policy which made it purchasable at virtually no cost.
Tags: Currency, American Dollar, The Yen, The Euro, For...
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Facebook on the Market
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 When Mark Zuckerberg announced that he was planning to float Facebook on the NASDAQ market, there was a global buzz which had everyone sitting up and paying attention. The smell of money was in the air, and analysts were fascinated to see how Facebook would perform.
Several weeks on, they have their answer – disastrously. The Facebook float started badly with technical errors within the first half hour that the shares were available, but that's nothing compared with the damage that the share price has suffered since. At the time of writing, Facebook shares are down 20% from their original asking price at $28.19 per share. So what went wrong?
Firstly, analysts are arguing that it was the wrong time to float the company. With the team struggling to work out how to make money out of their growing mobile audience, buyers are concerned that the innovation has gone out of the company. Furthermore, Facebook users are becoming more and more worried about their privacy. Every time Facebook changes its terms and conditions, there is widespread publicity and usually outrage. And then there is the track record of other social networks before it; MySpace and Bebo both came and went out of fashion within a very short space of time. Will Facebook do the same?
Another problem with the floatation comes from the shareprice itself. Initially priced at $38, the value was said to be extremely high for stock, even for a company as large and well-known as Facebook. Morgan Stanley, who made the valuation, is likely to have a slightly tarnished reputation, as their value for the shares was clearly inflated.
Private investors sucked into investing in Facebook have so far only made losses. So if Facebook is out, what is a good tech company to invest in? Apple shares have a history of performing well, and it is a company which has a history of innovation. Even with the loss of Steve Jobs at the helm, it is likely to be a better bet than a social network which nobody is sure will be around in a few years.
Tags: Facebook, markets, flotation, NASDAQ, disaster
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Facebook Flotation
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.jpg) So – Facebook has been floated on NASDAQ for around $38 a share, but after the first day of trading, the price remained unchanged. We saw nothing in the way of the ‘pop' usually seen when big popular companies are floated on the market. So presuming that you haven't bought any Facebook shares, are you missing out? Is this a sign that the social network's dominance is finally starting to wane?
Well, let's not get carried away. It's doubtful that Facebook will disappear overnight. But there are worrying signs, such as speculation that banks handling the flotation propped up the sale with their own money rather than let Facebook's shares fall. Then there are the previous social networks which once looked set to conquer the net – Bebo and Myspace – bought for billions and later sold for pennies when it was discovered that they weren't earning enough. Social networks make money because they have access to detailed information about what people do every day. It's the advertiser's dream. Not only can they display advertising on a website which people visit every day, but they can also harvest the information they put on there.
Of course, Facebook's problem is that people don't like having that information being harvested. Facebook is still regarded as a private space, which is why there is uproar every time they change their terms and conditions. And so the challenge is to get people to harvest their own information and hand it willingly to the advertiser. Which is becoming ever challenging for several reasons. For a start, more and more people are accessing the social networking site on their smart phones rather than their computers, where it is significantly more difficult to display advertisements. But there are other arenas out there, some analysts argue, and Facebook could make even more money if it should start dabbling in e-commerce.
So how's it going to go? Has Facebook made all the friends it can? Or will it still be dominant in ten, twenty, thirty years? Only time will tell.
Tags: Facebook, NASDAQ, shares, flotation, future
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Branson Business
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We're not talking pickle, we're talking Richard Branson, British business tycoon and loveable success story. Everyone loves an underdog, and they don't come much bigger than Branson. Dyslexia and poor academic scores led to Branson leaving school at the age of 16, and thank God he did. Otherwise, he might never have discovered his incredible gift for connecting with people.
Branson's first business investment was a magazine entitled Student, set up when he was just 16. It's a far cry from the 400 companies owned by him now, under his Virgin label. Branson is the 4th wealthiest  person in the UK, with an estimated worth of US$4.2 billion, and his ventures range from Virgin Atlantic Airlines and Virgin Records, to Virgin Trains and most recently Virgin Banking. His business stands out from others, as it is determined to provide the premium to those willing to pay for it. Virgin Media, for example, was the first to provide fibre optic broadband to the UK, and it has continued to break records – the company is currently in the middle of doubling the broadband speed of all their customers.
But it's not all about the product with Branson, and he has obtained popularity through his willingness to embrace all kinds of media. He chooses to appear in advertisements for his companies, usually in a tongue-in-cheek fashion, thus publically endorsing his products in the biggest way possible. He has appeared in television shows, often as himself, and has even had cameos in some films.
It's not just about product; indeed, it's not always about business with Branson. The billionaire has got where he is today by setting seemingly unachievable goals and then actually achieving them, and this doesn't merely apply to his business life. He has attempted world records, from flying around the world in a balloon to crossing the English Channel in an amphibious vehicle. He is also renowned for his activism and fundraising work, which has seen him holding meetings on his Caribbean islands with influential world figures, discussing issues such as climate change and global warming. Say what you like about Branson – he knows how to make money and use it for the best, and he's certainly as close as you can get to a business tycoon with good intentions.
Tags: Branson, Profile, Success, Richard Branson, Virgin
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Use the News
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 Investment . . . it can be a tricky game, and if you want to be successful then you need to develop a skill to anticipate when it is the right time to invest in something, and the right time to cut your losses. There are various ways of doing this – agents who volunteer to keep an eye on things to you and make ‘suggestions', for example. But one of the simplest tools for anticipating the future is quite simple – the news.
Of course, it's not as easy as it looks, and there is still a certain element of luck involved – otherwise everybody would be doing it. But it's a much better strategy than blindly investing in the first thing which comes to mind. And once you've started, you'll begin to develop a ‘sixth sense' for when to invest and when to sell. For example, keen eyes watching the currencies might have anticipated to sell euros early on, before countries started slipping into debt.
But nobody knows what the future holds, and you'd have to be Mystic Meg to get it right every single time. Take the most recent scandal surrounding the Murdoch Empire. With Murdoch declared as being unfit to run News Corp, you'd have thought it might be time to sell stock and stop investing in the company. But it's difficult to anticipate – Murdoch could step down and appoint a new chairman, allowing the company to continue going from strength to strength. After all, he is unlikely to benefit it whilst under brutal attack from MPs in Britain.
Then there is the fact that new technology and other contributing factors which can affect share prices, commodities such as gold and oil and the price of currencies. We're talking about things which can turn the investment tables overnight. The 2011 Tohoku tsunami in Japan saw share prices in several major companies drop instantly. Even other stock markets were affected – Germany's DAX lost 1.2% within minutes of the disaster, and inflation in Japan soared to a post World War II high.
So don't be arrogant enough to think that you can anticipate the odds every single time, unless you happen to have access to a time machine. But many gambling websites have a window indicating the headlines of the day. It's there for a reason, so use it.
Tags: Investment Tools, Strategy, Predictions, Murdoch,...
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Stock Market Terms
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The stock market is a fluid entity, in which you buy and sell goods in global markets. Many investors falsely view the market as stable, or as legalised gambling, and so make unfortunate mistakes buying stock blindly without thought. To these kind of people, the stock market is as reliable as a game of roulette, with the chances 50-50 that they will make a profit or a loss.
However, there is a  direct correlation between the knowledge you acquire surrounding stock and the ability to make sound judgments to invest wisely. Like anything, the more you know of stock market investment, the better the decisions you will make and this will result in smarter money management.
Some important terms:
1. Share. A share of stock is literally a share in the ownership of a company. When an investor buys shares in a company, they become entitled to a percentage of the assets and earnings of whatever organisation they buy into.
2. Assets. This encompasses everything that the company has in its possession (properties, equipment, patents, trademarks), and Earnings equal the amount of money the company brings in as a result of its transactions and services.
Many people wonder why a company would open itself up like this and share its assets and earnings to the highest bidder? So much of the cash a business brings in is used up on overheads, such as new equipment or technology, so a company needs money from outside to grow and remain solvent.
Companies have two options to raise the money they need to pay for the original start-up costs or to expand into new markets. These include:
1. Debt financing. This is when a business borrows the money they need from a bank or private institution.
2. Equity financing. This comes from selling stock to private and public investors who wish to buy a stake in the business.
Tags: Stock Market, Business, Investment, Equity, Terms
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Ponzi Scheming
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The Ponzi Scheme is one of the most notorious financial scams in the world today. Popularised by Charles Ponzi in 1910, the operation works by paying investors' returns with their own money – or another investor's. This means that the fraud requires people to be constantly investing, otherwise it will collapse. For this reason, the scheme is illegal.
The problem with the Ponzi scheme is that the person setting it up often  does so to take advantage of new and inexperienced investors. So how can you avoid being led into one if you're new to financial investment? You need to know the characteristics of a Ponzi scheme, so that you can tell when you're being offered one.
The Ponzi schemer will also traditionally offer extraordinarily high returns in order to lure new investors in. Remember – if it sounds too good to be true, then it probably is. You may see those returns initially, but the scheme is impossible to maintain, and if investors attempt to withdraw their money, they will only hasten its collapse.
So now that you know how to spot the characteristics of a Ponzi scheme, you're far less likely to be throwing your money down the drain and submitting yourself to spending hours at the police station, making statements.
Tags: Ponzi, Investment, Scams, Fraud, Finance
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Recognise the Online Scam
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Have you fallen foul of an online scam? Really, these scams are all over the internet. This is one of the reasons why people think they are not scams. Let me explain the last thing I just said. See, people have the idea that the internet is totally monitored, and that no one can post scams in sites because they would be definitely reported to the FBI and closed. However, the creators of these sites are not dumb at all, and they know exactly how to manage a site so that it doesn't violate any kind of law, and still, it is a scam. 
First of all, legally speaking, these sites are not really scams. They offer a service, which is practically useless, but they announce it as the best thing ever. They tend to show examples of what their money system can do if the conditions are totally ideal. However, the conditions will never be ideal.
These sites are normally very informal, they have no major attractive. They are usually plain text, including some videos and pictures. This normally proves that the site was designed under a low budget, so the owner is probably a starter trying to make money by offering a service. After you have been scammed by a couple of these sites, it is easy to identify them in less than a couple of seconds. They all look the same as each other, they are all introduced with a video of someone explaining the incredible system and how it is better than the rest, and in the end, a button to pay for your first month of membership.
Tags: Online, Scam, Mutual, Funds, Internet
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Benefits of Mutual Funds
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When investing money in the financial markets, look for avenues that best enable achievement of your investing targets. Mutual funds are one way of investing. They are funds that are pooled from different investors and are invested in stocks, bonds and other market instruments and securities. Mutual funds are varied and they can enable you to achieve your specific objective. The various types include; open-end funds, closed-end funds, unit investment trusts, and exchange traded funds. You should look for one that is coherent with your investing objectives. Their benefits include the following: • Increased diversification With mutual funds, you will be able to deal in more market securities than if you were dealing the security markets alone. The pooled funds also present more options for the investors of the funds. The fund manager can choose to invest in various market securities as to minimise your risks and increase your gains. • Daily liquidity Some of the mutual funds will enable you to get your money back on a daily basis. These are open-end funds, which can be bought back at the end of each business day. The shares are bought back at the net asset value which has been calculated on that particular day. • Professional investment management Mutual funds are managed by professional managers. These are people who are experts in the security market and also have experience with regard to investments. Thus, you are better off having them make your investment decisions. They will be able to make the best investment decisions in order to maximise the gains you will achieve in the security markets. However, when investing alone, you lack this available expertise which might come in handy when dealing in the security market. • Participation in investments available for large investors When you enter the security markets alone, you will most likely not have the financial ability to raise a lot of money. Thus, the large investment opportunities will not be available to you. Mutual funds enable the sole small scale investors to have an opportunity to participate in these larger investments. They are also usually more lucrative than small investments. By pooling funds from several small scale investors, the mutual fund becomes a large scale investor.
Tags: Mutual Funds, Money, Security, Investing, Shares
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Online PayPal Scam
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There is a very awful scam going around on the internet today which is meant to violate anyone’s privacy in many ways. This scam allows people to get anyone’s email password, PayPal information, facebook password, etc. however, those who fall in the scam do it because they are not aware of the way it works. See, when you think about hacking a PayPal account, it is very easy to imagine a complex, professional system that somehow guesses passwords, or a virus that infects the victim’s computer to get private information out. However, the process is one of the most simple hacking methods existent. In fact, I don’t even know if you can call it hacking. The system is based in a simple lie. That is what it does. It cheats on its victims through a fake email. See, all these sites in which you require a password and a username require you to register an email account to receive all important news about your account. Well, this hack is based in creating a fake webpage that looks exactly the same as another site. For example, the victim can receive an email with a message from PayPal and a link to “the site” so that they can enter their account and see the update themselves. People normally click the link and enter they username and password in the site that appears. What they don’t know is that the site they are filling with their data is actually fake. It is just a picture with two spaces to write on. Whatever is written in these spaces is saved and used to steal money from the accounts. Always be careful and check that your address bar says www.PayPal.com/.... If there is a little variation in the name, don’t proceed.
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