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GDP

GDP

What is GDP?
Gross Domestic Product, or GDP, is the market value of all final services and goods that are produced within a country in a specific period. The GDP looks the market value to arrive at a value which is then used to examine the growth rate of the economy as well as the overall economic health of the country being looked at. As a measure of the economy, the GDP can be a very useful way to measure the economy.
GDP can be measured using three different techniques. Theoretically, all three of these techniques should result in the same number. 
Income measure: The total value or amount of income that is mostly generated in terms of wages and profits.
Output measure: The total value of the services and goods produced by all different sectors of the economy such as construction, agriculture, service sector, government, manufacturing, and energy.
Expenditure measure: The value of the services and goods purchased by government, households, buildings, and investment in machinery as well as the value of exports subtracted by the imports
When a GDP of a country is calculated, the value includes all government and private spending, services and goods produced, as well as exports. The GDP is then adjusted for inflation and imports to arrive at a value which is believed to reflect the total sum of the country’s services and goods accurately. The GDP may be shown as a bulk number, but it is typically converted into a value representing GDP per capita, which creates a number that reflects the average per citizen. A high value for per capita GDP is associated with the country having overall improvements in the standards of living.
One major advantage of the GDP is that since it is computed in a very standardized and clear manner, it is simple to compare previous GDP values to judge the health and strength of the economy. Economists are also able to convert GDP values from different nations to compare the economies of the two countries with each other. The key goal with GDP is to quantify and show that a country’s economy has improved since the previous year. Many nations issue more than one GDP estimate in the year to give people a rough idea of just how well the economies is doing.
One of the major problems with the GDP is that the value does not account for other gray and black markets. While this issue may not seem like a major one, some countries have extremely trafficked black markets which may actually represent a significant portion of the GDP. The GDP value also fails to account for the distribution of wealth of the country, with GDP per capita value hiding economic disparities that may exist. For example, the United States has a very high GDP per capita, but a large disparity between the poorest and wealthiest Americans.
GDP values also do not account for the quality of the services and goods produced, or the reason for why they were produced. An example of this is how a country recovering from a national disaster may spend a large amount of money making repairs, which increases the GDP, but the disaster is not necessarily linked to the country’s economic growth. 

GDP per Capita

GDP per Capita

What is GDP Per Capita?
GDP per capita is a way to measure how prosperous a country in respect to each of its citizens. To understand what GDP per capita, it is first necessary to understand GDP, or Gross Domestic Product. Gross Domestic Product, or GDP, is the market value of all final services and goods that are produced within a country in a specific period. The GDP looks the market value to arrive at a value which is then used to examine the growth rate of the economy as well as the overall economic health of the country being looked at. As a measure of the economy, the GDP can be a very useful way to measure the economy.
While GDP is an aggregate figure that does not consider the varying sizes of countries, GDP per capita looks at the value resulting from dividing the total GDP by the country’s resident population on a given date. A helpful value can be obtained alternatively by GDP per citizen, where the total value of the GDP is divided by the amount of citizens that live in the country on a specific date. GDP per citizen in usually pretty similar to GDP per capita in many countries, but can vary largely in countries that high very high amounts of temporary foreign workers. 
Although GDP per capita is not technically a measurement of the current standard of living in the economy, it is often used as an indicator of it. Similarly, while GDP per capita is not a country’s measure of personal income, it can be used to make observations about it. The biggest advantage of GDP per capita being used as an indicator of the standard of living is that GDP per capita is measured widely, consistently, and frequently. GDP per capita is measured in that most countries frequently enough to provide data about the country’s GDP on a quarterly basis, which allows for trends to be observed quickly. 
The major disadvantage of using GDP per capita is that the value is not a measure of the standard of living in the country. Rather, GDP is meant to be a measure of the nation’s total economic activity, which is an entirely different concept.
The rational for using GDP per capita as a proxy for standard-of-living is not that it acts as a good indicator of an absolute level of standard of living in the country, but rather that the living standards often move with the per-capita GDP, so that any changes in living standards are detected readily through changes in the GDP per capita.
Proponents of GDP per capita as a metric of social well-being often argue that the value is a neutral measure and displays what are able to do, rather than what we should do. This idea is compatible with the point that different individuals have different inclinations and different feelings on what well-being qualifies as. 

Security Certificate Overview

Security Certificate Overview

What is a Security Certificate?

 A Security Certificate is a legal instrument that is granted and authorized by the Securities and Exchange Commission (SEC); ‘SEC’ is an acronym for the Securities and Exchange Commission, which is the regulatory body mandated by the Federal government of the United States employed to investigate and regulate matters involving financial and investment activity of the public, commercial market.
A Security Certificate is required in order to authorize the legality and recognition innate within any or all transfers of securities or financial instruments undertaken within the trade and exchange amongst the realm of the public, open market – another name for the stock market.
What are Securities?

Securities are defined as financial instruments that are both traded and exchanged within the realm of the public, commercial market; activities latent within this market rely heavily on transfer and purchase of securities. In contrast to money or hard currency, securities cannot be used as currency within a commercial setting; this means that while securities can be traded and exchanged within the setting of a financial market, individuals in possession of securities are not permitted to use securities as legal tender.
Yet, within individual securities exists an individual monetary value, which is valued both as per its immediate value, as well as its eventual value; eventual value with regard to securities exists as a result of the capacity for the increase or decrease with regard to its valuation.
The Purpose of a Security Certificate

A Security Certificate serves a variety of purposes, which range in classification from the regulation of the transfer of monetary instruments, and well as the governmental mandating of financial activity; the attainment of a Security Certificate not only expresses the latent legality within a financial transaction involving securities, but also commits that transaction to official record. Within the following circumstances, a Security Certificate is typically requires in the event of financial transfer:

Legal Compliance

A Security Certificate acts as a contract upon whose participation solidifies the expressed consent of both parties involved within the transfer of this particular security; a Security Certificate is mandated by the Sec, which requires the adherence to any and all statutes and stipulations conveyed by the innate legality evident within the wording of a particular Security Certificate.
Transfer of Securities
Upon the transfer of securities, a Security Certificate is required by the SEC in order for the completion of the process; this requirement is also imperative with regard to approval of the SEC with regard to the transfer of individual securities – the receipt of a Security Certificate allows for the conveyance of legality within an individual transfer.
Commitment to Official Records

The receipt of a Security Certificate can also provide for both solace and ‘peace of mind’ with regard to the individuals or entities involved in such a transfer; in the event that the transfer of a security requires officiating, the SEC files every Security Certificate awarded within its archives – this results is the official substantiation of an individual transfer as a result of the awarding of a Security Certificate

Resistance

Resistance

When discussing trading of financial instruments one of the indicators that a trader will look at is the resistance and support levels.  Resistance levels are those price levels that indicate that a stock has hit a virtual ceiling and the price will begin to come down.  Resistance in a stock trading situation is kind of like an upside down trampoline.  When the resistance level is reached it will cause a “bouncing” affect where the price of the financial instrument will begin a downward decline.  
The opposite of resistance is support.  A support level is a level where once a financial instrument drops to a specific level the trend of the financial instrument will indicate that that reaching that price level will cause the stock to start an upward tick.  Resistance levels are found by looking at financial instruments closing prices over the course of a number of months or years.  When you find a price range that tends to trigger a downturn in stock price it can be used as a resistance level.  Once a stock hits its resistance level it has a tendency to take a downturn until it reaches its support level.  The support level will do the opposite and cause the stock price to go up.  
Traders tend to use the resistance and support levels as an indicator of when to buy and sell their financial instruments.  When a financial instruments trading price is rising and about to reach a resistance level it will usually be treated by the investor as a time to sell the instrument.  In contrast, when a stock price is dropping the investor will wait until the stock price reaches a support level and buy the stock.  
Just as in any other form of trading these resistance and support levels are not definite.  Even though there is a pattern that a trader will follow in making these decisions the stock price may reach the resistance level and keep going until it hits a new resistance level and is pushed back down.  In the converse a stock price may drop farther than its support level until it reaches a lower support level and is bounced back upwards.

MACD

MACD

MACD stands for Moving Average Convergence Divergence.  This is a mathematical tool that traders use to predict fluctuations in the stock market or other markets involving financial instruments.  The MACD is comprised of two different Exponential Moving Averages, one long term and the other short term, for the same stock.  An exponential moving average is a moving average where the earlier dates in the moving average are weighed less than those that are more recent. 
When creating a MACD the longer Exponential Moving Average is usually around 26 days while the shorter Exponential Moving Average is 12 days.  The two EMAs are plotted on a graph with the resulting EMAs hovering close to each other around zero.  The MACD on a chart consists of a MACD signal line, the Exponential Moving Average and the MACD histogram.  The MACD histogram is a bar graph that charts the differences, positive or negative, in value between the 26 day EMA and the 12 day EMA.  
MACD is often used by traders to reach determinations on when to get involved with a stock or when to exit from trading in that asset.  When the short term, 12 day, Exponential Moving Average rises above the slower moving long term, 26 day, Exponential Moving Average it is called a convergent movement.  This is often an indicator that positive trends show it is a good time to invest in that particular asset.  When the short term Exponential Moving Average is lower than the long term exponential moving average then you have a divergent movement.  This trend is usually used as an indicator of it being a good time to sell the asset .
Studies seem to indicate  that the MACD is not a reliable tool for entry or exit signaling, like it is supposed to.  Many times it is found that the MACD will remain steady and upon a slight divergence it will indicate an exit signal where in reality it is just a minor lull that is, in fact, a minor bump prior to a major up tick.

EDGAR

EDGAR

What is EDGAR?
EDGAR – Electronic Data Gathering Analysis and Retrieval– is an acronym for the filing process employed by the SEC, which is the regulatory body employed by the Federal Government of the United States with regard to the authorization of legality existing within the realm of the public investment market. The EDGAR system is defined as an investigative measure undertaken within the SEC Filing process; prior to the granting of permission to participate in public trade and exchange of a company’s stocks and securities, that company will be required to both provide all applicable documentation, as well as receive approval from the SEC and the submission of applicable documentation and forms.
Components of the EDGAR Filing Process
Within the engagement of Electronic Data Gathering Analysis and Retrieval, individual companies and corporations wishing engage in trade and exchange activities undertaken of the public market, which is also known as the stock market, are required to fulfill the requirements expressed by the SEC; within the realm of EDGAR, there exist a variety of stages to complete prior to the receipt of approval:
Companies may be required to provide any or all financial history with regard to the source of their respective funding; this is required in order for the Committee overseeing EDGAR to properly ascertain the nature – as well as the implicit legality – with regard to the funding of a respective company.
The mention of any or all holding companies, subsidiary companies, or mergers with regard to the ownership and operation of an individual company; the provision of this information allows for the Committee responsible for overseeing EDGAR to review any potential areas for collective or conspiratorial financial activity to take place.
The provision of earnings reports in tandem with spending reports; the provision of this material allows the Committee overseeing EDGAR to ensure that funds and monies earned by an individual company are not – or have not been – the subject of misappropriation or fraudulent activity; the nature of fiscal activity undertaken by an individual company allows for the accounting of funds, which substantiates lawful and ethical disbursement.
The provision of any or all reports of past criminal indiscretion with regard to finance and capital; the ‘EDGAR Process’ allows for the general populace to be privy to pertinent information with regard to the operation of an individual company – although past indiscretions do not necessarily constitute for rejection by the Committee overseeing EDGAR, that information is legally required to be made available to the general public.
The Purpose of EDGAR
The implementation of EDGAR was enacted as a preventative means undertaken by the Federal Government of the United States in order to not only regulate, but maintain authority over the financial activity undertaken by companies and corporations engaged within the trade and exchange activity taking place within the setting of the public, open market. The prevalence of government regulation, which is considered to be one of the many benefits of the EDGAR process, allows for the strict adherence and uniformity with regard to applicable legality concerning financial, as well as commercial matters.

Facts About the Sarbanes Oxley Act

Facts About the Sarbanes Oxley Act

What is the Sarbanes-Oxley Act?

The Sarbanes-Oxley Act was a piece of legislature that was passed in the year 2002; this act was proposed by Maryland Senator Paul Sarbanes and Ohio Senator Michael Oxley as means to provide added protection and security to the United States economy, while enacted more strict investigative and regulatory measures with regard to corporate finance, investing, and the trade – and exchange – taking place on the Commercial Market.
The Sarbanes-Oxley Act, subsequent to its passing, instituted the required fulfillment of a variety of federal stipulations and authorization on the part of any or all publically-traded companies with Market Capitalization values exceeding $75 million. The Sarbanes-Oxley Act is perceived to be a direct response to the ENRON Corporation Scandal uncovered only a year prior to the passing of the Act.


Components of the Sarbanes-Oxley Act

Within the act, a vast array of stipulation, requirements, and classifications exist with regard to their respective – and mandatory – adherence on the part of applicable corporations; the following elements of the Sarbanes-Oxley Act are some of the most common:

Market Capitalization
Market Capitalization, which is the total calculation of a value of an individual company’s stocks and bonds in circulation within the public – or stock – market. The Sarbanes-Oxley Act enacted that every corporation exceeding a $75 million Market capitalization value would be required to adhere to the stipulations and legality expressed within the Bill; in contrast, – ‘Microcaps’ or ‘Penny Stocks’, which are defined as corporations whose respective Market Value does not exceed $50 million – would not be required to adhere to the legislature expressed within the Sarbanes-Oxley Act.


Government Regulation
The Sarbanes-Oxley Act was promoted in order to address the inadequacies that both Senator Sarbanes, as well as Senator Oxley had perceived to be latent within SEC regulations; the SEC – also known as the Securities and Exchange Commission – is the governmental body under whose jurisdiction regulation and investigation of financial activity on the public market exists.
Although the SEC had been imposing audits and investigations with regard to alleged financial fraud, the Sarbanes-Oxley Act expanded on the implicit regulations with regard to financial companies suspected of illegal and unlawful activity.


Financial Fraud

The Sarbanes-Oxley Act not only expanded on the jurisdiction of the SEC, but also elaborated on punitive measures regarding criminal activity taking place with regard to corporations on an internal level – ‘internal’ is considered to represent the following:
The Sarbanes-Oxley Act mandates that any company or corporation suspected of destroying, forging, altering, or concealing official documentation may be subject to supplementary prosecution in addition to any or all preexisting charges.The Sarbanes-Oxley Act allows audits to take place by the SEC with regard to the investigation of any or all financial records in existence within a company or corporation applicable to this Act.
The Sarbanes-Oxley Act authorizes the SEC the permission to investigate and authorize the process, history, and procedure with regard to any or all internal loans, transfer of funds, and movement of assets taking place within the infrastructure of the company.


Whistleblower Clause

Within the Sarbanes-Oxley Act, there exists a clause entitled the ‘Whistleblower Clause’, which draws on the informal title of an individual not employed by an official law enforcement agency, who brings a perceived injustice to light; this clause within the text of the Sarbanes-Oxley Act allows for the protection and accommodation of compliant employees agreeing in the cooperation of SEC-conducted investigations.

What Are SEC Filings

What Are SEC Filings

What are SEC Filings?

SEC Filings involve the legislative process of satisfying
the required paperwork provided by the SEC; the SEC – also known as the
Securities and Exchange Commission – is the regulatory body belonging to the
Federal Government of the United States of America responsible for the
authentication, investigation, and regulation of companies who are
publically-traded on the commercial, open market. SEC Filings are required by
any or all companies whose stock, bonds, or securities are traded or exchanged;
without completing SEC Filings, as well as the receipt of SEC authorization, a
company will be unable to participate in trade activity undertaken within the
stock market.

SEC Filings and EDGAR
(Electronic Data Gathering Analysis and Retrieval)

The EDGAR system is defined as an investigative measure
undertaken within the process of SEC Filings; prior to the granting of
permission to participate in public trade and exchange of a company’s stocks
and securities, that company will be required to both provide all applicable
documentation, as well as receive approval from the SEC Filings board. In
accordance with the process of SEC Filings, individual companies and
corporations wishing engage in trade and exchange activities undertaken of the
public market, which is also known as the stock market, are required to fulfill
the requirements expressed by the SEC; within the realm of SEC Filings, there
exist a variety of stages to complete prior to the receipt of approval.

Forms Required by the
SEC Filings Committee

The SEC Filings Board requires the submission of official
forms, which have been created – and subsequently classified – in order to
allow for the provision of pertinent information with regard to the receipt of
approval from the SEC; the following forms are required to be fulfilled and
submitted prior to approval:

Form 10-K

The 10-K Form is provided for completion by the SEC Filings
board; this form is considered to be the general account of performance with
regard to both financial and capital earned within that fiscal year; the
accuracy and truthfulness of the information illustrated by an individual
company’s 10-K Form is of the utmost importance – companies indicted in the act
of providing fraudulent and deceptive on the form will be subject to legal and
punitive recourse. The information conveyed on the 10-K form will be made
available to the general public; as a result, its authenticity and accuracy is
crucial – the following information is typically required:

Quarterly earnings of an individual country;
typically, this earnings reports coincides with fiscal quartering.

A provision of the range of Market
Capitalization experienced by that company on a quarterly basis; Market Capital
is the overall valuation of the full amount of stocks traded and exchanged
within that fiscal quarter – both the peaks, as well as the lows with regard to
individual, quarterly market capitalization are required by this SEC Filings
form.

Form 10-Q

In contrast to the 10-K form, which is filed once, this form
is filed 3 times a year; the respective filings typically coincide with fiscal
quarters. With regard to fourth quarter activity experienced by an individual
company, that information is most often reflected by the information conveyed
by the 10-Q Form; this form is considered to be far-less detailed in
conjunction with its 10-Q counterpart.

Securities vs Stocks

Securities vs Stocks

What are Securities?

Within the realm of the open market, which is also known as
the stock market, financial instruments undergo a wide range of activity, which
involves their respective purchase and trade; due to the fact that both stocks
and Securities do not share in the innate valuation designated to money or hard
currency, a primary facet inherent within both stocks and Securities is the
potential for fluctuation with regard to their respective valuation.

Securities vs. Stocks

Stocks are a classification of particular types of
securities; yet, while both stocks and securities may increase in value, they
also retain the potential to decrease in value; the respective growth innate in
both stocks, as well as securities are subject to variation taking place in a
variety of natures – these developmental natures range from drastic and
spontaneous to gradual and minimal. However, the similarities in the behavior
and trends within both stocks and securities do not substantiate for a uniform
interchangeability; the following are the primary differences that exist
between stocks and securities:

Stocks

Stocks are defined as are individual shares of a
publically-traded company available for purchase on the commercial investment
market. Stocks, which are available for financial exchange in a ‘unit-by-unit’
basis, maybe amassed through purchase, sold, collected, traded, transferred,
and exchanged. Any company designated to be traded on a public basis is
required to offer the general investing public the opportunity to purchase
shares.

Securities

As previously mentioned, Securities are financial
instruments that serve as investments whose respective terms are considered to
be longer than stocks; while stocks may be more apt to undergo drastic
fluctuation, securities are typically considered to retain a more stable nature
– as a result, securities are widely considered to be both assets and
investments, rather than simply investments. The following are some example of
the most common varieties of securities currently in circulation:

A bond is a classified as a type of security that
acts as a loan given by an individual investor to a larger company or
institution;in the event that an individual purchases a bond from a specific
company or institution, the purchase undertaken is considered to exist in the
form of a loan – as the bond matures, the latent interest grows.

A Bank Note is a type of security that is
granted from a Bank or varying type of financial institution accredited by the
SEC; a bank note retains dual valuation, as do a variety of securities – while
a bank not may be redeemed for its inherent value, it may also be kept with the
hopes of interest accrued in tandem with the growth of that bank.

Debt Securities are types of securities that are
available for public purchase of the commercial market; however, in contrast to
bonds, debt securities can be issued on an interchangeable basis with regard to
individual purchaser and cooperate purchaser – as per the nature of a multitude
of securities, the prospect of accruing interest substantiates the inherent
value existing within individual debt securities.

Security Act of 1933

Security Act of 1933

What is the Security Act of 1933?

The Security Act of 1933 was a legislative statute that was passed under the Presidency of Franklin Delano Roosevelt; Security Act of 1933 was a component of the ‘New Deal’, which was a legislative reform act that was put in place in order to promote economic growth and stimulation with regard to the United States Economy.
The tenets expressed within the Security Act of 1933 placed a system of governmental-regulated mandating, authentication, and regulation with regard to the trade and exchange activity taking place of the commercial, investment market; the legal stipulations within this act provided for a structuralized methodology dictating legal standards required to be upheld by both financial firms and private investors alike.

Why was the Security Act of 1933 Passed?
As previously mentioned, the New Deal – passed by President Franklin D. Roosevelt – was a legislative proposition set forth in order to stimulate and promote economic growth; however, the reasoning behind the passing of the Security Act of 1933 is far more multifaceted. The following events are considered to have led to the proposition – and subsequent adoption of the Security Act of 1933:

The Stock Market Crash of 1929

In the year 1929, the public, commercial investment market – which was known as both the’ stock market’, as well as the ‘open market’ – suffered a devastating collapse. Although a wide variety of catalysts have been attributed to the stock market crash, the lack of government regulation with regard to the enforcement of legality and ethical behavior taking place within the setting of the stock market is considered by many to be a primary facilitator of the stock market crash. The lack of government regulation was considered to prompt the following activity hoping to be quelled as a result of the adoption of the Security Act of 1933:
The investment firms and individual brokerages were permitted to both solicit and act on behalf of their respective clientele without proper regulation; this resulted in activity that was not subject to legal review on the behalf of legal review.
The investment firms – in addition to teems of collective investors – were permitted to act in concert with regard to communal purchases, sales, and exchanges allowing them to maintain agency over certain aspects of market activity.
 Publicly-traded companies were able to disclose privileged information, which was not available to the general public, to presumably privileged individuals presumably unauthorized to receive information of that nature; this resulted in an uneven advantage with regard to the general populace of investors
The Security Act of 1933 was introduced in order to avoid a repeat of the dire consequences following this crash, including:
 The financial devastation resulting from the drastic devaluation of stocks and securities resulting from collective sales and exchange activities occurring on a collective, and communal basis
The loss of billions of dollars as a result of the decreased valuation of stocks and securities.
The forfeiture, bankruptcy, and collapse of a multitude of businesses deemed insoluble subsequent to the Stock Market Crash.
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