Essay Example on When I joined the Mays Business School I had a Vision

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When I joined the Mays Business School I had a vision of what I wanted to be in the financial world Over the years I took many different courses listened to many different ideas but none of them clicked I came in seeing myself working somewhere in the Equity Research Business after graduation and later down the years starting an mutual or hedge fund Over the last few years I have been actively trading in the equity market One thing I always had issues with was the price target issued for a stock by a number of analysts Whether it be Zacks MarketWatch The Street or Vetr the price targets never remained consistent An example of this would be SunEdison When SunEdison SUNE was trading at 5 per share analysts had a price target of 12 set for the stock Given that company had 11 billion of debt deteriorating sales and a balance sheet which was a complete mess a price target of 12 seemed unreasonable Now that same stock is trading at 0 37 and now the analysts have a new price target of 3 75 which is still unreasonable since the company is about to file for bankruptcy which will leave its common stock worthless There are many other examples where analysts have done such a thing The key takeaway here is for an average investor who looked at the price targets for this stock and bought it at 5 thinking it was going to 12 lost more than 90 of his investment

A smart investor who looked at the balance sheet would have avoided the stock but considering there are more uninformed investors than informed investors such disastrous analyzing from the big firms causes the average investor to lose Another thing that happens is stock manipulation from the same research firms If these firms own a share in a company they upgrade it its rating push the stock up and then they close their positions letting causing the average harm again This is why we see stocks shoot up on an upgrade and then drop back down to the same range as they were before The perfect example of this is Blackberry BBRY A stock which was rated a Strong Buy when it was trading at 8 shot up to 9 50 on the upgrade pulled back to 7 and then the rating was changed to a SELL by the same firm The point here is the average investor was played around by the big firm again So in order to tackle this problem I'm working on a startup which will serve the purpose of analyzing stocks that are being manipulated This will be an Equity Research Business similar to The Street or Zacks but instead of harming the investor it will serve the sole purpose of helping the average investor and protecting them from being manipulated Soon after I have an established business and a stable source of income the second goal will come into play The hedge fund community only serves to the super rich investors because they are the ones who can make the big investments One idea that is completely ignored by Hedge Fund managers is that little drops of water make the mighty ocean Basing it off the research of my own investment firm I plan to start a Hedge fund or Investment fund to serve the daily investor

If the capital requirement is high which it will be our hedge won't be afraid to take on more than the usual number of investors The purpose of the fund will be to give the same rights and chances the people of the upper class have to the daily working class Capital will be collected from people who have no idea of investing in the market and placed into a dividend paying fund Using the research of our equity firm the fund will make investments in the equity market using hedging techniques to minimize risk The risk level will be kept at a minimum at all times since the people we will be dealing with rely on that capital a lot more than someone who has an endless amount of capital If all works out as planned the idea of investing in the market will excel and overall benefit the economy as a whole As we have seen over the last 30 years or so rich people keep getting richer and poor people keep getting crushed into the ground This is the idea behind the fund and the equity research business In a legal manner if we are able to inject the syrup of the people of the upper class into the lower class giving every person an equal chance of making it to the top this country will become a lot more competitive and the talk of equality we hear about all the time will become a reality


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