Happens | Common News Update

Feb132021 by adminNo Comments

The worst GDP since the invention of GDP. The question is, what happens next?

Business

The worst GDP since the invention of GDP.By now we're mostly all familiar with the scale of the economic contraction this country has faced over the past year. We have lived the lockdowns, the furloughs, the closures. Even so, the scale of the fall in economic output still takes the breath away. Not since this statistic, gross domestic product, was invented in the 1930s, not since the official UK estimates of it began a couple of decades later, not in living memory has it fallen as much as this - 9.9% in a single year.Indeed, if you look back through historic figures compiled by the Bank of England this was narrowly worse than the 9.7% fall in 1921 and only outdone by the collapse during the Great Frost of 1709. ...

Jan302021 by adminNo Comments

Short selling: What it is, why it’s risky and how the ‘squeeze’ happens

Finance

Aimee Dilger | SOPA Images | LightRocket | Getty ImagesMaybe you've heard by now that an army of retail investors has managed to use one of hedge funds' common investment strategies against them.That is, short-selling. It generally involves selling borrowed shares of a stock with the belief that the price will drop, at which point you'd buy shares at a lower price to repay what you borrowed (more farther below). And it's not the province of just hedge funds or other large investment entities. Individual investors — for better or worse — can employ it, too, if their brokerage approves it."For my clients who want to short stocks, I tell them it's generally not a good idea," said certified financial planner Ivory Johnson, founder of Delancey Wealth Management in Washington. More from Per...

Jan52021 by adminNo Comments

Here’s what happens if you own a share of a Chinese company that gets delisted

Finance

Traders work on the floor of the NYSE in New York.NYSEBEIJING — For Americans looking to play the China growth story, investing in the country's U.S.-listed stocks now bears a political risk that could lead to delisting.That means a Chinese company traded on an exchange like the Nasdaq would lose access to a broad pool of buyers, sellers and intermediaries. The centralization of these different market participants helps create what's called liquidity, which in turn allows investors to quickly turn their holdings into cash.The development of the U.S. stock market over the decades also means companies listed on established exchanges are part of a system of regulation and institutional operations that can offer certain investor protections.Once a stock is delisted, the company's shares can ke...

Sep272020 by adminNo Comments

Tuition refund deadline approaches at many colleges — here’s what happens next

Finance

The possibility of more campus closures has sparked a sudden interest in withdrawing from college before it's too late."All of us are counting down to the tuition deadline," said Carla Voight, 20, a junior at the University of Michigan in Ann Arbor, referring to the last day students are eligible for some reimbursement if they leave school.She worries that after that point, her classmates will be hard-pressed to get any money back, even if the campus closes and they are sent home. Depending on when a student withdraws during a semester, a school's refund policy may reimburse a significant amount — specifically, if it's within the first month or so of the semester, although it varies by school.More from Personal Finance:Students argue distance learning should cost lessColleges pass Cov...

Feb292020 by adminNo Comments

The Dow just lost 12% in one week. Here’s why and what likely happens next

Finance

The U.S. stock market suffered a historic pullback this week as the coronavirus spread outside of China, spooking investors and traders out of equities.The Dow Jones Industrial Average and S&P 500 each dropped 12% and 11% for the week, respectively, marking their worst weekly performance since the financial crisis. The 30-stock Dow posted its biggest one-day points loss ever on Thursday. It also tumbled deep into correction territory, down more than 10% from a record high, along with the S&P 500 and Nasdaq Composite.Wall Street's historic shake-up came as worries grew over the coronavirus' impact on the global economy and corporate profits. The number of new cases in China kept rising this week, while the number of people contracting the virus spiked in South Korea and Italy. This ...