Author name: David J Hoare

Masters of Science in Accounting, 30 YRS of business administration and financial reporting; prepared over 4,000 tax returns. Big believer in the business concept of 'marginal value' and its impact with market price. An advocate of the feedback loop in construction.

Value Investing – The Federal Reserve System (Lesson 20)

Phase II - Financial Analysis / By
Federal Reserve System

No other federal government creation is more misunderstood than the Federal Reserve System. The Federal Reserve’s primary purpose is to act as the central banking system for the United States. Formed in 1913, the Federal Reserve was tasked by Congress with three primary functions. One – maximize employment in the United States. Two – stabilize prices (control the inflation rate) and three – influence the interest rates for long-term notes. Since 1913 the Federal Reserve has expanded its role to include setting the monetary policy and regulating the entire US banking system.

Common Stock – Definition

Phase II - Financial Analysis / By
Common Stock

A document indicating ownership in a corporation is often referred to as common stock. It identifies an equity position in a business. The document or certificate is commonly referred to as a security and provides certain rights to the holder (owner). These rights include voting and residual value upon liquidation of the company.

Economic Bubble – The Great Dutch Tulip Craze

Phase III - Sophisticated Investing / By
Economic Bubble

Universally accepted as the first economic bubble, the Great Dutch Tulip Craze, also known as Tulipmania, of the late 1620’s to February 1637 serves as a reminder to all of us involved in business, that value can be driven by greed and not intrinsic worth. During this time period, a tulip bulb rose in price from 60 times its original value to over 150 times the original price.

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