Why might the annual interest rate paid by a 90-day Treasury bill differ from that paid by a 1-year T bill?
Answers: First of all there is no 1 year t-bill. The longest term is 6 months. In fact I do not believe the treasury issues 1 year paper at all. The next in the debt instruments after 6 month bills is 2 year notes, I believe.
Assuming that there were 1 year paper, the interest rate would be different because of the longer term of the loan. It may be greater as would normally be the case or it may be lower as is sometimes the case. The parameters that affect interest rates are economic expectations and risk. For example expectations and risk that inflation might become worse or expectations and risk that the economy might collapse as is currently the case. And also the Fed manipulation of interest rates.
Investors are risk averse -- and expect to be paid more to take on risk. The 90-day T-Bill and the one-year Bill have different levels of risk.
There are two types of risk associated with interest rate -- Price Risk and Reinvestment Risk. Usually, the market is worried about price risk. Since the one-year bill has four times as much price risk as the 90-day bill, investors usually demand a higher yield on the one-year.
Occasionally, market sentiment changes, and the market is worried about reinvestment risk. During these periods the market demands a greater return on the 90-day bill -- because it has more reinvestment risk.
dupply and demand?
Analysing the Indian stock open market...?
Hi can any one tell me what be the reason bringing up the rear the recent stock market crash..not solely in India while surrounded by most of the other economy.Answers: Many factor. One, there is a evolution in the worldwide investment climate. One of the primary triggers is the huge fear of the United States' reduction going into a recession with foreign institutional investors trying to rearrange their funds from risky emerging markets to stable developed market. Analysts are now expecting a cut surrounded by US interest rates.
Hedge funds and FIIs could have be the biggest sellers surrounded by the Indian markets, booking profits and making the most of the unprecedented bull run that have dominated the Indian stock market for a long time immediately.
The current volatility is also linked to worldwide bourses. There is a big correlation among global market. The presence of hedge funds across asset classes, along near increased global movement of assets, has increased event-related volatility.
Volatility surrounded by commodities markets have also significantly affected equity market.
It has be a long time (we can see the past 3-4 months) since the liquidity within the Indian market . Every character started investing in the bazaar just looking at the momentum of stocks a bit than the fundamentals. This led to the over valuation of the mid cap and small trilby stocks. Even a small news nearly the company led to an unnecessary increase surrounded by the price. Adding to the chaos be the new relations entering the market beside their money and investing in the stocks and intensely high actions in futures and option. People started taking huge positions in futures and option and it was almost close to laying a bet. As the markets be already overheated with most of the sector getting over valued it had to go through a correction at some point of time. The new year sale and all kept the market on the song.
Now, with the decay of the US markets and the souk sentiment the FIIs (these form a major chunk of our flea market investments) removed all the money they have invested in the Indian market. This led to a nouns situation and the whole flea market came down crashing close to a pack of cards.
Indian markets have rallied relatively a bit too high within a short duration. This is not a healthy sign to any souk. Valuation based trading should happed surrounded by a healthier marketplace. So when the global cues be not supportive, the market sink on its own weight. After this crash, corrections enjoy set in and the valuation seem to be modest now.
hi,
1. due to sub prime fears & solid effects of it.
2. fear of US slow down.
3. due to above aim panic selling which brought free trip up of the market.
jump through http://vbulls.com and some more sites.
it was a inimitable story,, never told before.. this is the approach market keep itself young.. It is presently again attractive & booming..
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Old Company Stock -- worth anything? I enjoy the cusip ID?
I have a stock cert from Optics Technology, INC dated Jan 31, 1975, beside CUSIP 683880108. I am unable to acquire any details on what happened to this company, or if the stock is worth anything. There is a unknown company by the same dub that started up in 1986. Any sustain would be greatly appreciated!Optics Technology was incorporated surrounded by 1958 in California (according to watermark on the cert)
Answers: Bring the stock ctf contained by to a big brokerage company////////////////put it in your explanation..they will find out....
OR,,,,,,,,,,THE CERTIFICATE HAS A REGISTAAR AND TRANSFER AGENT ON THE CTF..CONTACT THEM