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The Financial Ecosystem - Coggle Diagram

- - - - investment funds
        
        are the management and investment of capital in shares or bonds by private
        
        can be divided into either passive or active
        
        Investment as a liability achieved great success due to its approach to the "efficient market theory"
        
        it is because of its low cost and risk
      - Pension funds
        
        are the retirement assets of workers in a company.
      - endowment funds
        
        They are the funds that foundations and non-profit organizations retain
      - sovereign wealth funds
        
        they are part of the countries that earn money thanks to their natural resources
      - Hedge Funds
        
        in your investment process for loans from stockbrokers
  - - - Merchants
        
        market makers or stock runners
      - vendors
        
        those who sell financial instruments to investors
      - investment bankers
        
        They work with companies by providing capital and buying or selling financial assets.
- - - - We could pay managers more equity so they behave like owners
      - private equity can help by effectively replacing dispersed owners with one large owner
      - We punish managers more when they lie
- - - - When equity analyst Alberto Moel heard the news from one of his clients, he was puzzled
        
        If both transactions were completed, Hon Hai would own Sharp, and at the same time, Sharp would sell an asset to GouHon Hai’s chairman
        
        After the deals were announced, Sharp’s stock price
        dropped and kept dropping
        
        because the company had received so little for the plant from Gou
  - - - Assuming you want to short Bekaert, what are the risks of doing so?
        
        We’re not hoping to nd ideas that are going to cause us
        so much pain before they work out
        
        You can imagine how painful it was for Scopia to watch
        its investmen thesis go wrong for the first year as Bekaert
        stock rose and stayed hig
      - What would you want to know about the Chinese competitors in order to determine if Bekaert will be able to maintain its high margins?
        
        the analysts at Scopia decided that their expectations
        
        for future profits were much lower than the market’s.
        
        “In the case of Bekaert, we saw this industry returning
        to sort of normal margins"
        
        An industry that had been enjoying outsized returns was heading toward
        a more normal environment.”
  - - - was likely to stay on with the parent company,
        
        which would allow Morgan Stanley to hire its own
        CEO.
    - - was that it was a “classic corporate orphan.”
        
        At the time, Tops was trying to compete against two very
        different competitors:
        
        Walmart, a low-end, big-box chain, and
        Wegmans, a regional, high-end grocery chain
    - - the team calculated that it would have to increase its leverage by taking on more debt
    - - In the end, Morgan Stanley made about 3.1 times its original investment, the management team at Tops was able to independently operate its stores, and Tops thrived through the transaction
- - - - Companies
        
        Information
        
        Analitics
        
        Ideas
        
        The media
        
        Households
        
        Rankings
        
        Buy side
        
        Sell side