Posts Tagged ‘investors’

The Financial Markets Authority (AMF) is trying to stop the activities of a pseudo-advisor that would partially used for personal and $ 110 000 collected from three investors.

This is Daniel Poulin and the company he chairs, 9169-8993 Québec inc., Also known as the ECO6. In recent months, Daniel Poulin would seek investors so that they inject money into the company that developed a unique technology for the reduction of emissions from engines. However, it is not registered with the AMF to do so, as determined by the Bureau decision and overhaul (BDR).
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Investors Group announced that its shareholders have approved eight fund mergers at a meeting held earlier this week.

Thus, the Fund Investors Tactical Asset Allocation Fund will be merged with the Global Dividend Fund. The new fund will be known as the Global Dividend Fund Investors.

Growth Fund Investors Canadian Dividend will be merged with the Fund Investors Canadian Equity Income. The new fund will be called the Income Fund Canadian Equity Investors.
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Investors, prudence, or, directly, for fear, they chose the withdrawal last year. And so,
as a whole, the assets of investment funds fell by 9 percent from a year, which was located in the 132,350 million euros, according to figures released by Savings Corporation.

These figures are not surprising because investors had to face the earthquake and the nuclear crisis in Japan, fear of a relapse into recession, the tightening of the debt crisis in Europe … It was too much.
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Investors, prudence, or, directly, for fear, they chose the withdrawal last year. And so,
as a whole, the assets of investment funds fell by 9 percent from a year, which was located in the 132,350 million euros, according to figures released by Savings Corporation.

These figures are not surprising because investors had to face the earthquake and the nuclear crisis in Japan, fear of a relapse into recession, the tightening of the debt crisis in Europe … It was too much.
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Behavioral finance, which analyzes the herd behavior of investors, offers fire and sword the theories used by most analysts and institutional managers. Although widely shunned in Quebec, it no less fueling the passions of one of its main standard-bearers, William André Nadeau.

What is the term most commonly used among academic researchers in finance
and management of high caliber in recent years? Behavioral finance. As a point of theoretical and practical, it seduces, annoys, intrigue. IPhone is a bit of the financial community: it is talking. But unlike the iPhone, behavioral finance is far from being a successful marketing …
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The index VIX volatility index is also called the index of “fear” has reached new heights in 2008 with a level 80 above the level of 40 reached in the summer of 2002. A VIX above 30 indicates that the market is primarily driven by the emotion stage of fear, panic or euphoria.

Fortunately the level of the VIX is more reasonable for 12 months, limiting the extent of disturbances stock over very short periods.
Investors, economists and analysts behavior triggered by varying moods. The contagion effect in the optimism or pessimism is spreading very rapidly in a few weeks.
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With the advent of Internet, investors have never been entitled to as many economic and financial information, accurate, well presented and peeled in every way. The information that is transmitted more quickly and more democratic, not least in terms of cost and accessibility to the public.

However, for psychologists in financial markets, a substantial increase in the quantity and quality of information provided to investors does not automatically translate into better forecasts. Beyond a certain threshold, no new information ‘ hardly increases the accuracy of the predictive judgments of experts or amateurs. It seems that investors are not alone in their situation. Doctors, lawyers, engineers, negotiators, psychologists and many other types of professionals would be “unconscious victims” of this phenomenon is called the illusion of knowledge.
A search for clinical psychologists is revealing in this regard. The study was to ask them a diagnosis of a number of individual cases, while providing the same amount of information for each case. When this information was rather brief, psychologists believed that they can be a proper diagnosis in 33% of cases, although their success rate was 26% on average. When information on each clinical case has been multiplied by four, they evaluated their potential success rate of 53%, when in reality he was only 28% on average. Even when the information on each patient has increased 400%, accuracy of diagnosis increased by only 2%.
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The minority shareholders of companies and Raymor Biosyntech saying cheated demonstrated Sunday outside the offices of the Financial Markets Authority (AMF) to denounce their view, its inability to protect investors.

Stephen Robert, former President of Raymor, and Lorenzo D’Alesio, a shareholder of the latter and Biosyntech, feel they have been stripped of their assets by unscrupulous financiers. They were against the AMF, which they accuse of immobility in both cases.

Raymor as Biosyntech that declared bankruptcy in 2009 and 2010 respectively, leaving about 11,000 investors in the lurch. In both cases, the spokesmen of minority shareholders say they have been ignored in what they called “illegal privatization” in the case of Raymor and “dubious ploy” in the case of Biosyntech. The latter company, sold for $ 4.5 million to buyers, would be assessed $ 500 million today.
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Two professional basketball players of the same caliber compete in a contest shots to the basket. After three attempts, one scored three baskets in a row, while the other missed them all. Which of these two players will be most likely to succeed the next cart? If you answered “Neither one nor the other” or “Both players have the same chance as the other,” you have won . On strict statistical and probabilistic, each roll is in itself an isolated event whose outcome does not depend on previous shots.

Yet, most people choose the first player – one who scored three baskets in a row – on the grounds that it is better than the second, that luck is on his side or that success breeds success .
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Why do investors choose the stock market rather than their region and country to invest? It is because the neurone “Harry Berry”

International diversification is recommended as a source of risk reduction. Yet the majority of individual investors, brokers and fund managers prefer to invest in companies they know close to home. How behavioral finance explains it this behavior which can cost from 2% to 5% per annum to the investor?

If you are an investor for a long time, remember what was made ​​up your stock portfolio, whether you own or advisor to a broker. It is likely that a majority percentage of your portfolio was invested in by well-known companies: for example, shares of National Bank, Laurentian, Bell Canada, Nortel, Alimentation Couche-Tard and many others.
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