ACTSC371 Chapter Notes - Chapter 1: Risk Aversion, Modern Portfolio Theory, Securities Offering
14 Apr 2016
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Document Summary
The crash of 1929 and the great depression: in 1920s fortunes were made by supposedly brilliant investors. Elevator boys and cab drivers overhearing investor convos started paricipaing in the invesing. Resulted in phenomenal rise in stock market averages and crash of 1929. One day panic in 1987: crash of 1987 atracted universal atenion by the one-day panic in the stock market. 1987 turned out to be neutral year for investors. 1987 crash set the stage for the economic and inancial boom of the 1990s. The technology bubble in the nineies: growth of tech companies was described as a bubble . The new millennium bear market : real asset (ex. Mortgages soared; borrowers normally considered poor credit risks, with the compliance of mortgage oicers and banks, were able to inance the purchase of homes that should have been unafordable. Trading in these instruments resulted in trillions of securiies being circulated.
