Standard & Poor’s 500 Index (S&P 500) is a stock index, which tracks changes in the value of a hypothetical portfolio of 400 industrial stocks, 40 utility stocks, 20 transportation companies stocks and 40 financial institutions stocks. The total of 500 different stocks is weighted proportionally to each stock’s market capitalization relatively to a particular base period. S&P 500 Index accounts for the 80% of the total market capitalization of the New York Stock Exchange (NYSE), while two contracts on S&P 500 are traded on the Chicago Mercantile Exchange (CME).  

The base-weighted aggregate methodology used by S&P 500 is a set of combined variables, namely price and number of shares. By multiplying the stock price by the number of common shares outstanding, investors may calculate the market capitalization of a company. Then, they find the corresponding indexed number, which represents the results of each calculation and they can understand how the Index tracks the particular stock over time.  

The total-return calculation of the S&P 500 Index has progressively become highly appreciated by the Association for Investment Management and Research’s (AIMR) and the Securities and Exchange Commission. In order to calculate the total returns for any equity security of the S&P 500 Index for a given time period, an indexed dividend is added to the closing S&P 500 Index value for that period and the total is divided by the closing S&P 500 Index value at the beginning of the time period.  

To calculate the indexed dividend, which is the dividend distribution of the companies in the S&P 500 Index, the total daily dividends for all of the stocks in the Index for a given time period are added. The total is converted into an indexed number by being divided by the Index divisor, which is the basis for comparability at any given time, and for any required adjustments due to changes in the equity composition of the Index. The calculations of the Indexed Dividend are based on the ex-dividend date and not on the payment date in order to consider any the market price adjustment occurring for the dividends. 

The formula used to calculate the indexed dividend is: 

Total Daily Dividends / Index Divisor = Indexed Dividend 

What makes S&P 500 Index attractive is its high liquidity. This is due to the fact that S&P 500 comprises of a great variety of companies from several industries, which offers to investors the opportunity to buy stocks from Technology, Healthcare, Financial Services and Telecommunications sectors at a low cost since there is no need for active management to track, analyze and pick stocks.  

By and large, S&P 500 Index tracks also a large number of mutual funds, which employ short sales of securities listed in the S&P 500. By applying leverage through futures contracts and stock and index options, S&P 500 Index has become one of the world’s most popular trading tools.

I work as a financial and investment advisor but my passion is writing, music and photography. Writing mostly about finance, business and music, being an amateur photographer and a professional dj, I am inspired from life.

Being a strong advocate of simplicity in life, I love my family, my partner and all the people that have stood by me with or without knowing. And I hope that someday, human nature will cease to be greedy and demanding realizing that the more we have the more we want and the more we satisfy our needs the more needs we create. And this is so needless after all.

Article Source:http://www.articlesbase.com/investing-articles/a-guide-to-using-standard-poors-500-index-854188.html

An option gives the holder of the option the right to buy or sell an asset, but the holder does not have to exercise the option. Unlikely in futures or forward contract, where the two parties are committed to some action, options are fundamentally different. 

Options are classified into call options and put options. A call option gives the holder the right to buy an asset by a certain date (maturity date) for a certain price. A put option gives the holder the right to sell an asset by a certain data for a certain price. 

In every option contract there are two sides. On one side is the investor who has bought the option (long position) and on the other side is the investor, who has sold the option, i.e. has written the option (short position). The investor, who buys the option, gives to the writer of the option cash or borrows money using a margin account. The initial margin, which is the amount that initiates the contract, is typically 50% of the value of the underlying asset and the maintenance margin, which guarantees that the account will always remain positive, is typically the 25% of the value of the underlying asset. 

A naked call option is an option that in not combined with an offsetting position in the underlying asset and the option writer does not own the stock. Naked call option is highly risky because if the calls are exercised the writer has to buy the underlying asset on the spot market at a higher price in order to deliver it. This strategy is used by an investor who is interested in buying a stock below its market price.  

The initial margin required by the Chicago Board Options Exchange (CBOE) for a written naked call option is greatest of (1) the 100% of the proceeds of the sale plus a 20% of the underlying asset less the amount by which the option is out of the money or (2) the 100% of the proceeds plus a 10% of the underlying asset’s price. 

Example:

We assume that an investor writes three naked called options, where option price is $8, strike price is $42, and exercise price is $39. The option is $3out of the money, i.e. the strike price is greater than the exercise price by $3.  

To decide on the initial margin, we calculate as follows: 

(1)      300 x [8+ (20% x 39) – 3] = 300 x ( 8 +7.8 – 3) = $3,840

(2)      300 x [8+ (10% x 39)] = 300 x (8 + 3.9) = $3,570 

The initial margin requirement for this naked call option is therefore $3,840. 

There has been a lot of discussion as to whether naked short selling is legal. Although, advocates of naked short selling assert that is not necessarily a violation of the federal securities laws, still it is illegal if it causes a decline in the market prices. Typically, traders borrow a security before they sell it. Therefore, if a trader sells a stock short, without having borrowed the security, or without determining that it can be borrowed, then this traded is engaged in illegal naked short selling.

I work as a financial and investment advisor but my passion is writing, music and photography. Writing mostly about finance, business and music, being an amateur photographer and a professional dj, I am inspired from life.

Being a strong advocate of simplicity in life, I love my family, my partner and all the people that have stood by me with or without knowing. And I hope that someday, human nature will cease to be greedy and demanding realizing that the more we have the more we want and the more we satisfy our needs the more needs we create. And this is so needless after all.

Article Source:http://www.articlesbase.com/investing-articles/a-look-at-naked-short-selling-of-stock-854190.html

Hi Guys!

Thank you for all of your email enquiries, due to the volume of emails, I am sorry for not responding to all of you. However, I have just composed this article to answer your questions about what is N.V.L.S.E and how does it help you advance, overcome barriers to health, and achieve your dream goals. Those of you who were interested in the investment program of  N.V.L.S.E also find the answers here.

The secret of N.V.L.S.E
N.V.LS.E Brain tool is based on Breakthrough Research in Neuroscience and Psychology of achievement. The neuro visual & Linguistic Syntax Encoding Brain tool, was once reserved only to big government organisation such as NASA, CIA, FBI, military, those in the show business, sport Olympics, wannabe celebrities and the rich and powerful.

Why do you think the government do not want to implement mind training in schools, colleges, and universities? It comes to no surprise that the program give people and companies bit of an edge. Why do you think that philosophy, the science of thinking was not part of the national curriculum until individuals reach mature age?

By the time an individual reaches the mature age, he or she would have already been brain washed by the system, be it government or religious organisation. The mature person finds it so hard to let go from memory implants of his past conditioning. Thus the mature person would have already been owned by the system, and remains a slave to his superiors, and circumstances.

Governments never created special mental and emotional training schools to teenagers to become their full potential, so they let them reach a mature age after massive memory implants, and indoctrinated by political systems, religious dogma and corporate brain washing. As I said above, once a teenager reaches adulthood, they Find it so hard to let go from implanted belief systems.

The children who are now adults form part of the propaganda system, hypnotized into believing that the world is scarce, that abundance is unreachable, that they are doomed to remain under subsistence level. These very individuals will fight against anyone who tries to free them from the system. Very few become self actualized, self-regulated moral agents.

The Self-Actualised Winner
Psychologist Abraham Maslow recognized self-actualization, the yearning to do something praiseworthy, as the chief glory of human need. Of course, how one achieves self-actualization is a subjective matter, but I believe that starting a new, from where you are, to free yourself from illusion and tyranny of routine.

Truly, self-actualization takes guts and courage of becoming your full potential – ultimate personal power through mental training.. I argue that most of us function at a level that represents a very small percentage of what we could be – maybe around 2% or 3%. Through Brain Mind Technology (N.V.L.S.E) we can quickly raise our level to 5% or even 10%.

Self-actualization entails improving the software in our brain. As a computer, it is the software that drives the hardware. When you don’t train the mind to its peak performance, you are leaving your life to someone else to control it. N.V.L.S.E has a tremendous power to develop you into the person you desire to become, the actualiser, and the attractor of all the things you choose to have.

N.V.L.S.E includes (but isn’t limited to) the following:

• ascertain that you are your own person, nobody controls you

• Shift your thinking and shape up your perception from that of a subject-slave to that of a free sovereign

• Develop insight, intuition, and psychic power.

• Crystallizing your understanding of the nature of your “mind power”

• Regaining your personal power.
• unleashing your genius within, your infinite creativity and intelligence

• Developing your ability to encode insightful fresh data from the cosmic ether to support you in the achievement of your desired dream goals
• Develop your social and business skills, including networking skills to help you submerge and attract competent people to work with you.

• You become the master of your time management
• You become the beacon of entrepreneurial skills.
• Improving health and fitness,

• Expand your life span with the knowledge you will gain from the infinite reservoir of your consciousness

• Empower and master your emotional control.
• Becoming the beacon of decision-making.

So we are really talking about sophisticated intelligence that anyone can tap into it to free themselves from tyranny of routine.

SOPHISTICATED INTELLIGENCE PROGRAMMING IS THE CULMINATION OF SUCCESS PROGRAMMING DESIGNED THE NEUROSCIENCE WAY. IF ARTIFICIAL INTELLIGENCE HAS DRIVEN TECHNOLOGY, COME AND SEE WHAT AND HOW SOPHISTICATED INTELLIGENCE RAPIDLY METAMORPHOSES MAN TO GO FROM BEING A TRAMP TO RICHES, FROM BEING AN ILLITERATE IN HIS ADULTHOOD TO GAINING UNIVERSITY DEGREE, FROM BEING TERMINALLY ILL, and then, FULLY RECOVERS.

There are NO meetings to attend
NO expensive seminars to go to
NO workshops or training days to book.
No expensive coaches,
No more reading 500 pages +
No more listening to dozens of audio CDs to achieve your dream goal.

You have the world best coaching system tool to use as often as you desire, and in the privacy of your own home.

Hold on tight, N.V.L.S.E is going into an audio written format, we will advice you on its launch. Thank you for reading and your willingness to share new knowledge with mankind.

Any Investors interested in this mega program can contact me direct 07999 579 135 Andre

Many Blessings From The Soul of Truth & Divine Love

Andre Zizi

Andre Zizi
Author – The Spiritual Psychology of the Science of Money-Phology
A Philosophy Graduate & Therapist. Philosopher/Mentor/Teacher

Any questions about the program, do send me your inquiries, and I shall endeavour to help you with tips for free. ziziworld@hotmail.com

The first program developed in USA and attracted $250 million Wall street investors. if you are an investor, then do ring or send me a text, on 00 44 (0) 7999 579 135 Andre

Article Source:http://www.articlesbase.com/investing-articles/nvlse-investment-opportunity-855434.html