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Investing in Bonds

Investing in Bonds

What is a Bond?
A bond is a debt commodity that an entity will issue in order to raise capital for a company, government, school district, or even for the building and development of apartment complexes.  A bond is unlike stocks, mutual funds, and other investment opportunities in that it does not operate as ownership, or a security interest, in an entity.  The way a bond works is that an entity will issue a bond for a face amount for purchase by an investor.  At that point the entity has an obligation to, over time, repay the debt with interest.  In this scenario a bond holder is not an owner of the entity but is rather a creditor of the entity.  The entity is the debtor and is obligated to repay the bond, or loan, within the prescribed period; much like when you take out a mortgage you are indebted to the bank, or lending institution, that you borrowed the funds from.
Bonds have their advantages and disadvantages for both the entity issuing the bond and for the investor.  Advantages for the investor are that they are not required to sell you an interest in the company.  Especially with start up companies the entity will want to retain control and keep as much of the ownership of the company as possible.  This will be done by issuing bonds.  By doing so the company will be able to get the capital it needs to operate and expand the company while, at the same time, retaining complete ownership of the company.  The disadvantage to this is that the company will be required to pay back the bond at regular intervals, and with interest.  Whereas the issuance of stock, and other forms of capital, do not require any further obligations in paying the stockholder, a bond issuer is required to maintain repayment plans and if a company loses money it is still obligated to repay the bond, with interest whereas the investor in stocks sinks or swims with the company.  
Another advantage to bonds is that the investment is stable.  An investor in a bond will be assured of a specific return, unless the company goes bankrupt.  If you purchase a fixed bond for $100 with a fixed interest rate of %10 over 5 years you will be virtually guaranteed that you will receive $110 at the end of the 5 year period.  This is a sound investment for those who wish to invest casually or in investments that will allow them stability and peace of mind.  The downside is that bonds, in the most part, do not have a high rate of return.  Because of the stability and low risk of bonds they do not carry with them a high rate of return.  However, this depends on a number of factors including the length of the bonds maturity; whether the bond issuer is an established company, government entity, or if it is a start-up or troubled institution; and the extent of the current market.  For example, if IBM decides to issue bonds to investors it will most likely have low rate of return due to the stability of the company, and the, almost, guaranteed return on investment.  In contrast, a start-up company, or troubled institution, that issues bonds to investors in the troubled economic climate of 2011 will have to offer a high percentage of interest on their return in order to convince investors to take a chance on the bond.

Terms
When looking at bonds you will want to know the basics defining certain aspects of a bond:
FACE AMOUNT: The amount that the bond is worth on its face.
ISSUE PRICE: Is the amount of money that the debtor pays for the bond. The issue price is not necessarily the amount that the bond is equal to. Often bonds are sold at a discount where a debtor will buy a $100 bond for $75. Upon maturity the debtor will receive $100 plus interest.
MATURITY DATE: This is the amount of time it will take for the bond to mature to the face amount. Bonds that have a maturity date of less than one year are not necessarily bonds and are referred to as Money Market Securities
COUPON: This is the amount that the debtor will receive on a semi-annual or annual basis, depending on the bond, The Coupon signifies the payment of the creditor to the debtor in compliance with the bond agreement.

Yield to Maturity
yield to maturity, also known as redemption yield of a bond is the internal rate of a return that an investor will receive upon the maturity of a privately or government issued bond.   A bond does not give the debtor any interest in the institution but obligates the creditor to pay the debtor interest, in the form of a coupon, until the bond reaches its maturity.
Yield to maturity is calculated by an A.P.R. (annual percentage rate) but the interest is actually dispersed in a semi-annual basis in which the debtor will receive a coupon, consisting of the percentage of the face amount plus interest. For example, if a 10 year bond is sold with a face amount of $100 at 10% Yield to Maturity that means that every 6 months the debtor will receive a coupon of $5.50 (The $100 face amount + $10 (the interest accumulated over the 10 year life of the bond) / 24 (the number of coupons that are distributed over the 10 year period).
Yield to maturity rates depend on a number of factors including the current market rates, the length of the term and the creditworthiness of the issuer. Typically the longer the bond maturity length the higher the yield to maturity will be. On the same note, the more stable the issuer the less the yield to maturity rate will be. United State Treasury Bonds are considered to be one of, if not the most, stable bond an investor can purchase. The return on your investment is practically guaranteed and for that reason the coupon amount and the yield to maturity will be lower.

Types of Bonds
There are many different types of bonds that an investor can purchase.  When investing in bonds you will want to, not only look at your expected return and interest, but also the stability of the bond, and how long it will take for the bond to reach maturity.  
Municipal bonds allow an investing in bonds in your community.  Your local government, school district, or other entity in your local community may issue bonds for the use of infrastructure.  By investing in bonds that involve your local community it allows the investor to make a sound investment while, at the same time, giving the investor a sense of contribution to his, or her, municipality.  Investing in bonds with your municipality are, not only stable investments, but are also exempt from most, if not all, state taxes.  The downside of municipal bonds is that investing in bonds in your locality are expensive.  Most municipal bonds require a minimum investment of $10,000 to $100,000.  Another disadvantage is that the amount of money that you are expected upon your maturity date does not factor in for inflation.
Corporate bonds are another form of investing in bonds that is very popular.  Investing in corporate bonds is the riskiest form of investing in bonds, however they yield at maturity, can be much higher than that involved with municipal, state and federal bonds.  The downside to corporate bonds is that their is higher risk involved.  Because a corporate entity is more likely to dissolve than a municipality or other government entity the risk will be higher.  The more prone to dissolution the company the higher the risk, yet in the positive, the yield will be greater.  
The most stable form of bond is the United States Savings Bond.  A United States Savings Bond is almost guaranteed and they come in many different forms.  The two most prevalent are the EE savings bond and the I savings bond.
The EE savings bond is characterized by a stable, long term investment.  WIth EE savings bond the federal government will require a long term investment of 20 years in order for the bond to reach its maturity level.  There are two types of EE savings bonds: paper EE savings bonds and electronic EE savings bonds.  The most important distinction between the two is their return on investment.  With a paper EE savings bond the investor will get a yield on return of the value he invested upon the maturity of the bond.  This means that if you invested $5,000 then in 20 years you will receive a payment of $5,000 plus the interest accumulated over that period of time.  In contrast, an electronic EE savings bond will require you to pay half of the value of the savings bond and upon its maturity you will receive the face value; essentially allowing you to double your investment.  You are not required to keep your investment for the 20 year period in either form of EE savings bonds but their is a penalty for early withdrawal.  The disadvantages to EE savings bonds are the long maturity length, and the fact that an individual is allowed a maximum of $25,000 of investment per year.  EE savings bonds are exempt from state and local taxes but they will be used to calculate federal tax income.  In addition, EE savings bonds do not adjust for inflation.
The other type of United States Savings Bond that is very prevalent is the I bond.  An I bond is a U.S. savings bond where the yield on maturity is calculated as the fixed rate of return plus inflation.  The I bond is periodically adjusted to factor in for inflation and the yield at the end of the maturity will be in a way that you will not lose money based on the inflation rate.  One of the disadvantages of an I bond is that it is considered a zero coupon bond.  The interest that accumulates over the lifetime of the bond is automatically re-invested into the I bond.

Who Is Ken Lay

Who Is Ken Lay

The Crimes of Ken Lay

Ken Lay, through the ENRON Corporation, was responsible for the loss of upwards of $70 billion; this figure, which is estimated by a multitude of both historians and economists alike, is said to include $70 billion embezzled from investors and upwards of $2 billion misappropriated from both the board, as well as the trustees of the ENRON Corporation – Ken Lay is recognized as being responsible for the disposal of pension plans, stock options, and retirement funds initially allotted to the employees and trustees of ENRON.

The following crimes undertaken by Ken Lay and other ENRON executives led to the ENRON scandal, which is considered to be amongst the most notorious financial scandals taking place within the history of the United States:

Investor Misrepresentation

Ken Lay – in addition to a variety of ENRON executives – engaged in fraudulent operations within which investment capital is unlawfully wasinternally-distributed in a deceptive fashion. Ken Lay employed tactics of misrepresentation as a means to project the illusion of financial gains resulting from investment endeavors; typically, the investment capital of newer clients was misappropriated and proportioned to existing clients with the hopes of instilling confidence in the ENRON’s solubility.

Securities Fraud

Investor Misrepresentation undertaken by Ken Lay was achieved through the production of fraudulent earnings reports reporting deceitful and fallacious figures with regard to gains rendered through investments; as Ken Lay continued to embezzle incoming monies resulting from investments, ENRON continued to fabricate earnings in order to substantiate the multitude of funds for which were unaccounted.

Wire Fraud

Ken Lay conducted a majority of his fraudulent activity undertaken in order to mask the theft that was occurring through the utilization of electronic, computational facilities in order to transfer money embezzled to clandestine destinations where it would remain undiscovered.

Securities Exchange Act of 1934

Securities Exchange Act of 1934

What is the Securities Exchange Act of 1934?
The Securities Exchange Act of 1934 is a federal law that governs the secondary trading of stocks, bonds and debt securities in the United States Financial markets. The Securities and Exchange Act of 1934 is regarded as a sweeping piece of legislation—the act and its related statutes formulate the foundation of regulation in the nation’s financial markets. Furthermore, the Securities and Exchange Act of 1934 formally created the Securities and Exchange Commission—the agency responsible for enforcing federal securities law in the United States. 
Public companies in the United States raise billions of dollars by issuing various forms of securities in the primary market. The Securities Act of 1933, which regulates these original issues of security, is held separate from the Securities and Exchange Act of 1934, which regulates the secondary trading of securities in the secondary market—trading between individuals unrelated to the issuer (brokers or dealers).
The Securities and Exchange Commission:

The United States Securities and Exchange Commission is a federal agency that maintains primary responsibility for regulating the securities industry (as well as the nation’s stock and option exchanges) through a series of federal laws. 
Established after the passing of the Securities Exchange Act of 1934, the Securities Exchange Commission was codified as an independent, quasi-judicial federal agency during the Great Depression. The Securities and Exchange Commission was established through legislation to regulate the stock market and impede corporate abuse relating to the offering of securities and the delivery of corporate reporting. As a result of the agency’s goal, the SEC was given the authority to license and regulate exchanges, the brokers and dealers who conducted trades and the companies whose securities were listed on them. 
The enforcement powers given by the United States Congress, enables the Securities Exchange Commission to enforce the statutory requirements that all public companies submit reports (annual and quarterly) to the public and their shareholders. Additionally, these companies must also submit annual financial reports that outline the previous years’ operations and elucidate on how the company fared during this time period. These reports are crucial for investors to make prudent decisions when investing in the securities markets. The Securities and Exchange Commission makes these reports available for public viewing through the EDGAR system. 
Through the passing of the Securities Exchange Act of 1934, Congress established the Securities and Exchange Commission. This commission, known as the SEC, possesses broad authority over all aspects of the securities markets. This authority includes the power to regulate, register and oversee all brokerage firms, clearing agencies, the nation’s securities self-regulatory organizations and transfer agents. Furthermore, various stock exchanges, such as the New York Stock Exchange must abide by the regulations imposed by the Securities and Exchange Commission. The Securities and Exchange Act of 1934 identifies and prohibits explicit types of conduct in the markets and provides the Securities and Exchange Commission with disciplinary authority over all regulated persons and entities associated. 
Securities and Exchange Act of 1934 and Corporate Reporting Provisions:
The Securities and Exchange Act of 1934 mandates that all companies with more than 10 million dollars’ worth of assets whose securities are held by more than 500 owners to file periodic and annual reports. 
The Securities and Exchange Act of 1934 governs the disclosure of materials that are used to solicit shareholders’ votes in annual meetings for the approval of corporate actions and the election of corporate directors. This information, which is contained in the company’s proxy materials, is to be filed with the Securities and Exchange Commission before any solicitation takes place—this time constraint must be adhered to in order to ensure compliance with other disclosure materials and rules. Solicitations, whether enacted by shareholder groups or managers of the company, must disclose all important information regarding the issues on which holders are asked to vote. 
The Securities and Exchange Act of 1934 requires disclosure of information by any party seeking to acquire more than 5 percent of a respective company’s securities by tender offer or direct purchase. These offers typically extend as an effort to seize control of a corporation. Similar to proxy rules established by the federal government, this stipulation permits shareholders to make informed decisions on these crucial corporate events. 
Securities Exchange Act and Insider Trading:
The Securities Exchange Act of 1934 institutes rules which prohibit insider trading. The securities laws prohibit, in a broad sense, fraudulent activities of any nature in connection with the purchase, offer or sale of securities. These regulations are the foundation for the act’s disciplinary actions, including all actions against insider trading. 
The Securities Exchange Act of 1934 denotes insider trading as an illegal action in which an individual traders a security while in possession of nonpublic or confidential information concerning the respective corporation. This maneuver is deemed illegal because the individual in possession of the information is violating his or her duty to withhold said information or refrain from engaging in financial transactions with regard to the company. 
Securities Exchange Act of 1934 and the Registration of Associations and Exchanges:
The Securities Exchange Act requires market participants to register with the Securities and Exchange Commission. Market participants include: brokers, dealers, transfer agents, exchanges and clearing agencies. Registration for these entities involves filing a series of disclosure documents that are to be updated on a regular basis.
The National Association of Securities Dealers and the exchanges are the self-regulatory entities; an SRO must establish rules that discipline members if improper conduct arises. Furthermore, these organizations must create measures to ensure that investors are properly protected and that the market where these transactions occur is practicing integrity. All rules proposed by a self-regulatory organization must be reviewed by the Securities and Exchange Commission to be deemed legitimate and active. 
Exemptions for Reporting under the Securities and Exchange Act:
Section 13B of the 1934 Securities Exchange Act provides that with matters pertaining to national security of the United States, the Executive Branch has the authority to exempt certain companies from the critical legal obligations outlined in the act. These obligations include keeping and publishing books, records or financial statements and maintaining a system of accounting controls to ensure the preparation of financial statements in compliance with accepted accounting provisions. 

Credit Card Act of 2009

Credit Card Act of 2009

What is the Credit Card Act of 2009?

The Credit Card Accountability Responsibility and Disclosure Act of 2009 (commonly known as the Credit Card Act of 2009), is a Federal statute passed by the United States Congress and further solidified by President Barack Obama on May 22, 2009. The Credit Card Act of 2009 is a comprehensive credit card reform legislation that aims to promote transparent and fair practices regarding the issuance and use of credit cards. The legislation was implemented to reform the extension of credit under an open end consumer credit plan to refurbish the credit system that ultimately precipitated the economic recession of 2008.
Why was the Credit Card Act of 2009 Implemented?


The Credit Card Act of 2009 was created to re-organize and regulate the credit market; lending institutions and credit card companies who offered lines of credit to unworthy (based on credit scores and credit histories) applicants were fundamental in the economic collapse. Millions of Americans out-leveraged themselves and borrowed beyond their disposable income or savings. This ability to spend freely on credit was sparked by the de-regulation in the lending market.
Numerous lenders would extend credit cards or other streams of financing to those individuals who possessed poor or no credit scores. These “bad loans” were distributed with exorbitant fees and interest rates. Over time this created a massive system of default, where millions of Americans were stricken with credit card debt and unable to meet the predatory lending rates supplied by the de-regulated credit card or lending institutions. 

Provisions of the Credit Card Act of 2009
The Credit Card Act of 2009 created the Credit Cardholders’ Bill of Rights. This series of documents includes several provisions aimed at regulating how credit card companies implement fees and to what extent they are allowed to charge customers. However, the Credit Cardholders’ Bill of Rights does not include restrictions on price controls, rate caps or fee settings.

Provisions of the Credit Card Act of 2009:
According to the Credit Card Act of 2009, all cardholders are awarded protections against arbitrary interest rate increases. If the issuer wishes to increase the APR or interest attached to the card, they must give the cardholder 45 days’ notice of any increase. Cardholders, because of the legislation, are also now allowed to cancel their card and pay-off any existing balance at the original interest rate if an increase is imposed. 
The Credit Card Act of 2009 also prevents credit card issuers from retroactively increasing interest rates on existing balances.
The Credit Card Act of 2009 states that cardholders will not be penalized in the form of late payments or additional fees if they pay their bills on time. Under this rule, credit card companies are also restricted from due date gimmicks or arbitrary changes to the due date. 
The Credit Card Act of 2009 protects cardholders from misleading terms. One of the principal aspects of the Credit Card Act of 2009 requires that all fees and charges be transparent to the borrower during the application process. Within this right, issuers must refrain from imposing excessive or unjust fees on their cardholders. 
The Credit Card Act of 2009 also implemented provisions concerning the issuance of credit cards to young people. Under the Credit Card Act of 2009, no credit card may be issued to an individual under the age of 21, unless the youth has a co-signer or can provide a substantial proof of payment.

Equity Finance: A Brief Guide

Equity Finance: A Brief Guide

What is Equity Financing?


• Equity financing, also known as shared capital, is the strategy of gathering or generating funds for company projects through the act of selling a limited amount of stock to the public sector. Equity financing may involve issuing new share of common or preferred stock; the shares may also be sold to commercial or individual investors depending on the type of shares offered and the governmental regulations of the particular nation. Regardless of strategy or implementation, equity financing is primarily utilized by both large and small businesses for the purpose of raising money for new company projects. 
Equity Financing vs. Debt Financing:
• Equity financing is a means of raising funds for some sort of business venture, such as the purchase of new equipment or the expansion of a company. If the underlying business entity does not raise money through equity financing it will embark on an alternative capital infusion, known as debt financing. Debt financing refers to the process of borrowing money from lenders and entering contracts to repay the lender according to the specific terms outlined in the loan agreement.
• A company will decide on how it will raise funds (debt financing versus equity financing) in accordance to the type of business venture it is pursuing as well as the company’s credit rating. The choice between equity financing and debt financing may also involve different outcomes for the project. The underlying company must consider the aftereffects of a failed venture as well as the fortunes obtained from a successful undertaking. 
Purpose of Equity Financing:
• As a strategy to raise money, equity financing is typically undertaken with the expectation that the project funded through the sale of stock, will eventually turn a profit. At this point, along with realizing a net gain from the expectation or endeavor undertaken, the business will also be able to provide dividends to shareholders who purchased the stock. 
• In addition to the aforementioned benefits of equity financing, the company will be free from outstanding debts owed to a lender—debt doesn’t exist as a result of raising capital through the issuance of stock. 
• Because equity financing lends a portion of the company’s future growth to public investors the capital-raising strategy may not be beneficial to every company. Should the intended project be anticipated to yield a return in the short run, the underlying company may find the obtainment of loans at low interest rates to be more beneficial. 

Savings and Loan

Savings and Loan

What is a Savings and Loans Association?


• A savings and loans association (also referred to as a thrift), is a financial institution that specializes in accepting savings deposits for the purpose of making mortgage and other loans. A savings and loans institution possesses depositors and borrowers who are viewed as members due to their voting rights. In addition to such rights, these institutions and individuals have the ability to direct the financial goals of the organization—they are similar to the policyholders of a mutual fund or insurance company. 
• The savings and loan association became a major financial player in the early 20th century; during this time the savings and loans association assisted millions of people with home ownership, through the issuance of mortgages and by assisting their members with basic investing and savings outlets. The latter process was primarily achieved through the offering of passbook savings and accounts and term certificates of deposits. 
Basic Characteristics of Savings and Loan Associations:
• The primary purpose of a savings and loan institution is to offer mortgage loans on residential properties. These institutions serve as the primary source of financial assistance to the majority of American homeowners. The most important characteristics of a savings and loans institution are:
o A savings and loans institution is typically locally owned and privately managed
o The institutions receive individual and private savings and then use these funds to make long-term amortized loans to home purchasers
o A savings and loans institution will offer loans for the construction, purchase, refinancing or repair of a home
o A savings and loans institution is both state and federally chartered
Mortgages offered by Savings and Loans:
• The earliest mortgages were not offered by investment banks or other financial institutions, but by insurance companies. The majority of these mortgages were offered as short-term financing (or interest-only loans), with some form of balloon payment due upon maturity. As such, a number of homeowners were in perpetual debt and forced to either habitually refinance or foreclose on their properties. 
• As a result of the mass defaults, the United States Congress passed the Federal Home Loan Bank Act in 1932. This act, which was passed during the Great Depression, established the Federal Home Loan Bank and associated Federal Home Loan Bank Board to provide relief and assistance to other financial institutions to offer long term, amortized loans for home purchases. This legislation was passed to involve banks in the mortgage lending industry; this inclusion provided realistic mortgages to potential homebuyers. 
• The passing of the Federal Home Loan Bank Act gave way to the savings and loans institution. Thousands of savings and loans associations sprang up throughout the United States because low-cost mortgages were made available through the Federal Home Loan Bank. 

Third Federal Savings and Loan

Third Federal Savings and Loan

What is the Third Federal Savings and Loan Institution?


• Third Federal Savings and Loan is a thrift that offers low-interest mortgages to potential homebuyers who qualify. Third Federal Savings and Loan was founded in 1938 with one mission in mind: help their customers obtain a low-interest mortgage and a high-interest savings account. Similar to other thrifts, the Third Federal Savings and Loan Association offers certificates of deposit or savings accounts that pay interest to encourage private deposits. These deposits are then packaged and offered as mortgages to those individuals who qualify.
 
• In addition to offering savings accounts and low-interest mortgages, the Third Federal Savings and Loan Institution will offer retirement cds, checking accounts and debit cards. 
• The current APR on a 30-year fixed mortgage offered by the Third Federal Savings and Loan Association is 4.74%; this rate will fluctuate depending on your particular application. To apply for a mortgage issued by the Third Federal Savings and Loan institution simply visit the thrift’s website, located at https://www.thirdfederal.com/home.aspx or call them via their toll-free number (1-800-third-fed) to file an application. The mortgage application complies with the regulations instituted by the United States Federal Government; the Third Federal Savings and Loan institution will require standard information linked to your credit profile and your prospective home purchase.
Basic Characteristics of the Third Federal Savings and Loan Institution:
• The Third Federal Savings and Loan Institution, as stated before, is primarily focused on offering low-interest mortgages for residential property purchases. Similar to other thrifts, the Third Federal Savings and Loan institution acts as the primary mortgage provider for millions of Americans. That being said, the most important characteristics of the third Federal Savings and Loan institution are:
o The Third Federal Savings and Loan Institution is locally owned and privately managed
o The Third Federal Savings and Loan institution receives individual and private savings and then uses these funds to make long-term amortized loans to home purchasers
o The Third Federal Savings and Loan institution will offer loans for the construction, purchase, refinancing or repair of a home
o The Third Federal Savings and Loan institution is both state and federally chartered

Understanding Organized Crime

Understanding Organized Crime

What is Organized Crime?

Organized Crime is classified as a criminal activity conducted through the involvement of criminal groups and organizations typically working in tandem and in concert on a collective basis; this type of crime is renowned for its involvement of illegal commercial and financial activity including the undertaking ofmethodologies considered to be clandestine, fraudulent, deceptive, and illegal in nature.

Types of Organized Crime

Within the scope of Organized Crime, there are a seemingly-endless amount of applications with the regard for a collective undertaking of criminal activity; however, within the 20th century – as well as the beginnings of the 21st century within the United States – 2 primary measures of Organized Crime are considered to be the most prevalent:

Financial Organized Crime

Organized Crime taking place within a financial setting is classified as such resulting from the legislation applicable to the nature of the implicit criminal activity undertaken. Common activities latent within Financial Organized Crime may include the exchange and circulation of monies or currency in an unethical, unlawful, and illegal fashion; in the scope of a charge,this type of Organized Crime can occur in a variety of fashions, including:

Money Laundering

Embezzlement

Securities and Exchange Fraud

Accounting Fraud

Forgery and Counterfeit

Ponzi and Pyramid Schemes

Insider Trading

Financial Espionage

Conspiracy

Solicitation

Financial Blackmail and Extortion

Commercial Organized Crime

Commercially-based Organized Crime presents itself largely in the form of Racketeering. Racketeering is classified as a variety of criminal activityinvolving an illegal business or commercial venture. The implicit activity of Racketeering is neither specific to business operations nor commercialized endeavors; due to the fact that a wide array of commercially-based Organized Crime exists, the application of this criminal activity is fairly-expansive:

Racketeering may range in the scope of the legality with regard to the nature of the products and services that are marketed within this illegal endeavor; in certain cases, the products and services marketed within commercially-based Organized Crime endeavors are not inherently illegal – this can include taxed items, such as cigarettes, alcohol, and commercially-available items

In contrast, the undertaking of Commercially-based Organized Crime rooted in the provision of products and services deemed to be illegal is not uncommon; the expressed legality of the products and services is typically immaterial, due in part to the actions undertaken are inherently illegal – examples of illegal products and services may include prostitution, embezzlement, and the commercial sale of illegal drugs

Legislation Enacted With Regard to Organized Crime

The Racketeer Influenced and Corrupt Organizations Statute (RICO) is a legislative act passed by the Federal Government in order to quell the activity, formation, and proliferation of organized crime in the United States of America, both on commercial and financial levels:

The RICO statutes were enacted in order to solidify a method undertaking both legal and punitive restitution with regard to criminal activity occurring on an organized and collective basis

The classification of the nature of Organized Crime, despite the methodology or respective activities taken are considered to be less pertinent than the inherent criminal activity employed; as a result, the charge of criminal conspiracy is largely applicable to charges regarding Organized Crime activity

What Are Penny Stocks

What Are Penny Stocks

What are Penny Stocks?

Penny Stocks are types of stocks available for trade, exchange, and purchase within the realm of the investment market that have been attributed with Market Capitalization value that does not exceed $50 million; Penny Stocks, which are oftentimes referred to as ‘Microcaps – a colloquialism with regard to the word ‘Capitalization’ – are typically bought, sold, and exchanged in larger quantities.

Penny Stocks vs. Blue Chip Stocks

While Penny Stocks are traditionally considered to be stocks with Market Capitalization values not exceeding $50 million, stocks exceeding this Market Capitalization value – and oftentimes far surpassing it – are considered to be ‘Blue Chip’ stocks; in contrast to Penny Stocks, Blue Chip stocks can vary in Market Capitalization values ranging from $50 million to upwards of $400 million.

Blue Chip stocks derive their title from the moniker granted to the chips used in games of Poker – in the game of Poker, then ‘Blue Chips’ are classified as the most valuable chip on the Poker table:

The purchase and Exchange of Penny Stocks is typically undertaken by individuals who are either beginning a foray into the investment market or seasoned traders who have come to be well-versed in the trends and behaviors latent within Penny Stocks

While Blue Chip stocks are typically difficult to attain with regard to individuals with lower amounts of investment capital, the price range implicit within Penny Stocks allows them to be more widely-accessible to individuals without vast amounts of disposable income

Penny Stocks are considered to retain a higher risk in return than their Blue Chip counterparts; while Blue Chip stocks rarely experience drastic losses or gains severe in nature, the availability of Penny Stocks allows for their development to be far more spontaneous

The amount of surety innate in both Penny Stocks, as well as Blue Chip stocks varies; the elevated pricing of Clue Chip stocks allows them to retain far more stable valuation within the commercial market – in contrast, Penny Stocks are considered to retain an increased risk due to the prospect of immediate growth or loss

What are Micro Penny Stocks?

Micro Penny Stocks are types of stocks whose purchase prices are typically lower than their Penny Stock counterparts; while traditional Penny Stocks will range in purchase price – rarely falling below a $5-per-share price range – Micro Penny Stocks are known for their standard purchase price not exceeding $5-per-share. Akin to traditional Penny Stocks, there exists an innate risk with regard to the purchase of Micro Penny Stocks:

Due to the decreased purchase price innate within Micro Penny Stocks, the probability for Microcap Fraud to take place is increased; the mass purchase of Micro Penny Stocks may allow for the purchaser to singlehandedly mandate the behavior and trends associated with that particular Micro Penny Stock

While the decreased purchase price is an attractive prospect to many purchasers, Micro Penny Stocks are considered to be risky with regard to immediate gain; while there do exist instances where Micro Penny Stocks have become Blue Chip stocks, many Micro Penny Stocks lack the liquidity to provide for – at least – an upfront financial asset

Understanding The Iraqi Dinar Exchange Rate

Understanding The Iraqi Dinar Exchange Rate

What is the Iraqi Dinar Exchange Rate?

The Iraqi Dinar Exchange Rate is the rate of valuation applicable to the Iraqi Dinar, which is the official monetary system in place within the Iraq; currently, there exists no definitive Iraqi Dinar Exchange Rate on the FOREX Market, which is also referred to as the ‘Foreign Exchange Marketplace’.

However, a variety of countries and nation employ the circulation of the Dinar as the primary form of currency within the borders of their respective countries. While certain countries may allow for the facilitation of foreign Dinar with regard to commercial activity, other countries may not accept foreign Dinar as adequate means of currency.

Types of Dinar Exchange Rates

Within the realm of the FOREX Market, each individual Dinar corresponds with an abbreviated moniker, which not only allows for the identification of a specific Dinar Exchange Rate, but also its distinction from other Dinars in circulation:

1.       Algerian Dinar Exchange Rate

         FOREX Abbreviation: DZD

         Country of Origin: Algeria

2.       Bahraini Dinar Exchange Rate

         FOREX Abbreviation: BHD

         Country of Origin: Bahrain

3.       Iraqi Dinar Exchange Rate

         FOREX Abbreviation: IQD – though, not traded on FOREX

         Country of Origin: Iraq

         Notes: There currently exists no Iraqi Dinar Exchange Rate

4.       Jordanian Dinar Exchange Rate

         FOREX Abbreviation: JOD

         Country of Origin: Jordan

         Additional Countries Who Recognize the Dinar: Certain Palestinian Territories in West Bank

5.       Kuwaiti Dinar Exchange Rate

         FOREX Abbreviation: KWD

         Country of Origin: Kuwait

6.       Libyan Dinar Exchange Rate

         FOREX Abbreviation: LYD

         Country of Origin: Libya

7.       MacedoniaDinar Exchange Rate

         FOREX Abbreviation: MKD

         Country of Origin: Republic of Macedonia

8.       Serbian Dinar Exchange Rate

         FOREX Abbreviation: RSD

         Country of Origin: Serbia

9.       Tunisian Dinar Exchange Rate

         FOREX Abbreviation: TND

         Country of Origin: Tunisia

How to Determine the Dinar Exchange Rate

In the event that an individual wishes to determine the Dinar Exchange Rate in conjunction to another form of currency, they can go about this procedure in a variety of ways; however, the utilization of a Currency Exchange Calculator offering the Dinar Exchange Rate may be the most convenient and accurate method – individuals are encouraged to employ these types of calculation tools that are accredited or sponsored by the governing bodies or financial departments maintaining jurisdiction over that respective type of Dinar:

Step 1

Upon arriving at a Currency Exchange Converter or Calculator, individuals will be prompted to locate both the respective Dinar – represented by a FOREX symbol – as well as the corresponding currency involved; as stated above, the Iraqi Dinar is not currently traded on the FOREX Market, and as a result, an Iraqi Dinar Exchange Rate does not exist

Step 2

The individual may be prompted to enter an amount of units for which the desired exchange is applicable; however, certain Dinar Exchange Rate calculators will simply provide an exchange rate on a single-unit basis – and example of this can be illustrated in 2 ways:

Individuals in possession of Dinars interested in undergoing Dinar Exchange Rate investigation may be prompted to enter the FOREX abbreviation as the first currency, and the desired exchange currency as a secondary entry

Individuals desiring to acquire respective Dinars may be prompted to enter their native currency as the first entry, and the individual DINAR as the second entry – with regard to single-unit conversion calculators, an individual will be limited to view the Dinar Exchange Rate on a single-unit basis

Step 3

Upon completing the entry procedure, the results of the Dinar Exchange Rate with regard to the respective currency in possession will be illustrated.

 

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