Article Abstract:
It has proved very difficult to find a reliable formula for successful investment in shares, as past performance does not give any real indication about future returns. However, formula-based investment is still attracting considerable attention. Many investors are particularly interested in the O'Higgins method, which is based on the assumption that cheap, high-yielding stocks must be temporarily unpopular with the market. There is also some interest in the use of price earnings growth factors to pick stocks.
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Article Abstract:
Pyramid investment schemes can only provide returns if new sellers can be found. One type of scheme pays initial investors from new subscribers. Another type uses agents for a product for which demand exists. The top components of the pyramid receive part of the commissions, but do not sell. Three pyramid schemes in the UK in 1995 involved losses of around 10 million pounds sterling for 17,000 investors. The South Sea Bubble was an example of a pyramid scheme in the 18th century.
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Article Abstract:
The UK government has set up a committee to examine corporate governance. The Committee on Corporate Governance has Ronald Hampel as its chairman. Issues to be tackled include the weight of regulations for small firms. The responsibilities of large shareholders, and the structure of boards also need to be examined. Annual shareholders' meetings are a controversial topic, as is the role of auditors and their relationship with shareholders.
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