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The New Laws of the Stock Market Jungle

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The New Laws of the Stock Market Jungle

An Insider's Guide to Successful Investing in a Changing World

FT Prentice Hall,

15 min read
10 take-aways
Audio & text

What's inside?

It’s not your father’s stock market. Learn the new rules to improve the performance of your investment portfolio.

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Editorial Rating

7

Qualities

  • Innovative
  • Applicable
  • For Experts

Recommendation

Investment pro Michael J. Panzner offers an insider’s guide to Wall Street that will appeal to investors on several levels. He starts with easy-to-comprehend definitions of stock market terms such as "short-selling" and "equity-derivative products," and advances to more sophisticated concepts. With his down-to-earth approach, he demystifies the jargon, hype and superfluous data. What’s more, he provides an excellent account of the historical factors and recent innovations that have altered global finance. His "10 laws of the new investment universe" are useful and comprehensive. Unfortunately, Panzner tends to glorify the past, glossing over well-documented foibles to focus on modern sins. Still, he provides a frank and insightful view of Wall Street’s seductive lure. getAbstract.com recommends this book to investors who want to understand today’s market.

Summary

The New Landscape

Since the 1980s, technology, globalization and economic turbulence have converged to create an inconsistent and historically unprecedented environment for investors. Innovative buy-side and sell-side computerized trading systems have grown into powerful engines for collecting data and processing stock orders, enabling major investment houses to handle a large volume of transactions at lower cost.

Meanwhile, new communications channels such as text messaging, cell phones, e-mail and other Internet-based services provide an avalanche of news, data, rumor and hype. Retail investors, once peripheral to the market, have plunged in with increased resources.

Derivative equity products - investment vehicles generated from other securities - along with other new kinds of investments such as hedge funds and short sales have become extremely popular, increasing trading volume. Together, such factors have sparked an unprecedented explosion in equity transactions.

To understand today’s stock market, heed these 10 crucial "laws:"

Law 1: "Intraday Volatility"

Volatility has always spooked investors. But despite its bad reputation, volatility...

About the Author

Michael J. Panzner has worked as a salesman and a trader specializing in bonds, stocks and currency for international investment companies He has written for Barron’s, TheStreet.com, Bloomberg and Business Credit and Management Review. He is currently a vice president of an international financial services firm.

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