Arbitrage 3 Opportunities for Flipping a Profit

Arbitrage, in terms of economics, is the taking the opportunity to immediately exchange a good or service in a different for a higher price than initially invested. Put simply, a business person commits arbitrage when they buy cheaply and sell expensively. The Economics Glossary defines arbitrage opportunity as the opportunity to buy an asset at a low price then immediately selling it on a different market for a higher price. If a person can buy an asset for $5, turn around and sell it for $20 and make $15 for his or her trouble, that is called arbitrage, and the $15 gained represents an arbitrage profit. These arbitrage profits can occur in a number of different ways including through buying one good in a market and selling that same good in another, through exchanging currencies at uneven exchange rates, or buying and selling options in the stock market. Arbitrage of One Good in Two Markets Suppose Walmart is selling the original collectors edition DVD of Lord of the Rings for $40; however, a consumer also knows that on eBay the last 20 copies have sold for between $55 and $100. That consumer could then purchase multiple DVDs at Walmart then turn around and sell them on eBay for a profit of $15 to $60 a DVD. However, its unlikely that the person will be able to make a profit in this manner for too long, as one of three things should happen: Walmart could run out of copies, Walmart could raise the price on remaining copies as theyve seen an increased demand for the product, or the price on eBay could fall because of a skyrocket in supply on its marketplace. This kind of arbitrage is actually quite common on eBay as many sellers will go to flea markets and yard sales looking for collectibles that the seller does not know the true value of and has priced much too low; however, there are several opportunity costs associated with this including the time spent sourcing lower-priced goods, the research of competing market prices, and the risk of a good losing its value after initial purchase. Arbitrage of Two or More Goods in the Same Market In the second type of arbitrage, an arbitrageur deals in multiple goods in the same market, most commonly through currency exchanges. Take the Bulgarian-to-Algerian exchange rate  as an example, which currently goes for .5 or 1/2. The Beginners Guide to Exchange Rates illustrates the point of arbitrage by assuming instead that the rate is .6, wherein an investor could take five Algerian dinars and exchange them for 10 Bulgarian leva. She could then take her 10 Bulgarian leva and exchange them back for Algerian dinars. At the Bulgarian-to-Algerian exchange rate, shed give up 10 leva and get back 6 dinars. Now she has one more Algerian dinar than she did before. The result of this type of exchange is a detriment to the local economy where the exchange is taking place because that teller is giving back a disproportionate amount of dinars to the number of levas exchanged in the system.   Arbitrage generally takes on more complex forms than this, involving several currencies. Suppose that the Algerian dinars-to-Bulgarian leva exchange rate is 2 and the Bulgarian leva-to-Chilean peso is 3. To figure out what the Algerian-to-Chilean exchange rate needs to be, we just multiply the two exchange rates together, which is a property of exchange rates known as transitivity. Arbitrage on Financial Markets There are all kinds of arbitrage  opportunities  in financial markets, but most of these opportunities come from the fact that there are many ways to trade  essentially  the same asset, and many different assets are influenced by the same factors, but primarily through options, convertible bonds, and stock indices. A call option is a right  (but not obligation) to buy a stock at a price given  the option, wherein an arbitrageur could buy and sell in a process commonly known as relative value arbitrage. If someone were to buy a stock option for Company X, then turn around and sell it at a higher value because of that option, this would be considered arbitrage. Instead of using options, one can also perform a similar type of arbitrage by using convertible bonds. A convertible bond is a bond issued by a corporation which can be converted into the stock of the bond issuer, and arbitrage on this level is known as  convertible arbitrage. For arbitrage in the stock market itself, there is a class of assets known as Index Funds which are basically stocks which are designed to emulate the performance of a stock market index. An example of such an index is a Diamond (AMEX: DIA) which mimics the performance of the Dow Jones Industrial Average. Occasionally the price of the diamond will not be the same as the 30 stocks which make up the Dow Jones Industrial Average. If this is the case, then an arbitrageur can make a profit  by  buying those 30 stocks in the right ratio and selling the diamonds (or vice-versa). This kind of arbitrage is quite complex, as it requires you to buy a lot of different assets. This type of opportunity generally does not last very long as there are millions of investors who are looking to beat the market  any way  they can. Avoiding Arbitrage Is Essential to Market Stability The possibilities for arbitrage are everywhere, from financial wizards selling complicated stock  derivatives to video game collectors selling cartridges on eBay they found at yard sales.   However, arbitrage  opportunities  are often hard to come by, due to transaction costs, the costs involved with finding an arbitrage opportunity, and the number of people who are also looking for that opportunity. Arbitrage profits are generally short-lived, as the buying and selling of assets will change the price of those assets in such a way as to eliminate that arbitrage opportunity.

The Death Of The Black Death - 1148 Words

The Black Death, one of the greatest natural disaster to hit Europe thus causing the death of many people in the most horrific manner and cause the end of feudalism. This was a disaster that affected one third of the European continent and also one that no one was prepared to face. It killed more people than during a war and it impacted simple lives of people, their culture, religion and the economy as a whole. The origin of The Black Death has several explanations. Some people said The Black Death came for China while others believed it came from Italy. Some people thought of it as God’s way of punishing them for sins they have committed while others were just not sure as to what and how the pandemic rose. However, we knew that all these assumptions were just myths. It spread from the East and took over the entire western part of Europe. (Primary Source Packet) Neither a doctor or anyone can do anything about, it has no cure. This disease is said to show its extraordinary eff ect at the beginning of spring time as due to the extreme weather- the winters are extremely cold and the summer is very dry. The crops were dying an Inflation became a common occurrence and as famine broke out The Black Death plaque is â€Å"The Medieval black plague that ravaged Europe and killed a third of its population. It was due to the plague which is caused by a bacterium (Yersinia pestis) transmitted to humans from infected rats by the oriental rat fleas† (Medicine Net). Many historians believedShow MoreRelatedThe Death Of The Black Death1380 Words   |  6 PagesThe Black Death was a very important time in history and, while devastating, it led to many advances in medicine due to the mass spread of a new deadly disease. The 14th Century encompassed the time period of January 1, 1301 to December 31, 1400. When this disease struck, Ole J. Benedictow calculates that it killed about 50 million people in Europe alone, which was about 60% of Europe’s population at the time. That being said, the Black Death, often referred to as the Bubonic Plague, clocked inRead MoreThe Death Of The Black Death905 Words   |  4 Pagesgrew were dying. On the wake of these seven distressing years of weather and famine was the greatest plague of all times, The Black Death. In 1347 AD, The Black Death began spreading throughout Western Europe. Over the time span of three years, the widespread epidemic killed one third of the population in Europe with pretty near twenty five million people dead. The Black Death killed many more Europeans than any other endemic or war up to that time, vastly impacting the Church, the people, and the economyRead MoreThe Death Of The Black Death1223 Words   |  5 PagesIn the 1300s, the Black Death swept across the western world, leaving behind a different perspective on the world. The Black Death rampaged through cities, killing thousands of people a day, leaving the remaining citizens distraught. With the multitude of death , many people began to contemplate what the afterlife held in store for them. Therefore, pieces like the Dance of Death, transi tombs, the Three Living and Three Dead, and many other artistic expressions about death began to appear. The artisticRead MoreThe Death Of The Black Death2017 Words   |  9 PagesThe Black Death The pandemic known to history as the Black Death was one of the world’s worst natural disasters in history. It was a critical time for many as the plague hit Europe and â€Å"devastated the Western world from 1347 to 1351, killing 25%-50% of Europe’s population and causing or accelerating marked political, economic, social, and cultural changes.† The plague made an unforgettable impact on the history of the West. It is believed to have originated somewhere in the steppes of central AsiaRead MoreThe Death Of The Black Death1487 Words   |  6 Pages Hundred year’s war led to the black death: During the hundred year’s war, people began to catch a terrible sickness that was spreading along Mongol trade routes through central Asia to both china and Western Europe. This sickness was called the bubonic plague. The bacteria was infecting people when infected fleas bit them. Bubonic plague was one of the most feared diseases pf the ancient and medieval worlds. 2.City-states led to The renaissance in Italy: Renaissance society first tookRead MoreThe Death Of The Black Death1778 Words   |  8 Pages Fear. Uncertainty. Survival. These three words became synonymous with life in Western Europe during the period of the Black Death. This grim period represents a dark era in European history when a devastating outbreak resulted in a significant amount of instability, decline in population, and economic, political and cultural upheaval. In the face of this terrifying calamity, human judgement was put to the test as fear and uncertainty made people react to the plague in extreme ways. Socially, theRead MoreThe Death Of The Black Death1783 Words   |  8 PagesThe Black Death was one of the worst pandemics in history. The disease ravaged Europe, Western Asia, the Middle East, and North Africa between 1346 and 1353 (Horrox 1994). It is difficult to understand the reality of such a devastating event, especially given the fact that science during the middle ages was severely underdeveloped. No one knew about bacteria, viruses, or other microbial agents of disease (Benedictow 2004). They ha d no way of protecting themselves during that time and no one was safeRead MoreThe Causes Of Death : The Death Of The Black Death820 Words   |  4 PagesThe Black Death was a disastrous disease that spread across Europe in the years 1346-53. The name although might be a mistranslation of the Latin word ‘atra’ meaning both ‘terrible’ and ‘black.’ Meaning the people of the time probably called it the terrible death, not the black death. One major poet of the time thought that nobody would believe what they went through and thought their testimonies would be seen as fables. In the course of just a few months, 60 percent of Florence’s population wasRead MoreThe Black Death1386 Words   |  6 Pagesatrocious and it made the perfect place for Yersinia Pestis to thrive. Yersinia Pestis is the virus responsible for the Black Death, a deadly disease that rapidly powered through Europe, killing nearly all of the people in its way. The Black Dea th had a lot of gruesome and terrifying symptoms that made bystanders sick just watching. Certain people were more likely to acquire the Black Death than others. Since peasants had worse living conditions than the nobility, they were far more likely to catch theRead MoreThe Black Death1386 Words   |  6 Pagesatrocious and it made the perfect place for Yersinia Pestis to thrive. Yersinia Pestis is the virus responsible for the Black Death, a deadly disease that rapidly powered through Europe, killing nearly all of the people in its way. The Black Death had a lot of gruesome and terrifying symptoms that made bystanders sick just watching. Certain people were more likely to acquire the Black Death than others. Since peasants had worse living conditions than the nobility, they were far more likely to catch the

Group Roles and the Nursing Process Free Essays

The learning process in health care had revolutionized through time. Consequently, electronic communication and data storage have become critical in health care. Nursing education has been in demand for the past years and increasing dynamically in this aging world. We will write a custom essay sample on Group Roles and the Nursing Process or any similar topic only for you Order Now Thus, the proper training and attitude must be inculcated from nursing students to registered nurses. Under nursing guidelines, there are six recognized phases of the nursing process. These are data collection or assessment, diagnosis, identification of goals or desired outcomes, planning of interventions, implementation of treatment and care, and evaluation. Each step is important to be accomplished accurately and properly since we’re dealing with human health, a human life. Each of these phases usually has additional steps. For example, diagnosis implies interpreting data, relating data to other data, formulating hypotheses, determining additional data needed to test hypotheses, and so on. The data collection or assessment is the systematic gathering of information about the strengths and weaknesses of the patient. These include objective and subjective data. The objective data are the ones observed by the nurse herself while subjective data are those observed by the patient or his relatives and friends. The nursing diagnosis is the description of the patient’s health status, which contains the etiology and defining characteristics of the patient’s disease. In identification of goals or outcomes, it must be patient-centered, realistic, specific and measurable even in a limited time. A careful planning of the interventions that will be done must be considered. These interventions might be initiated by the nurse herself, the physician, or other provider in the health care team. The implementation of the treatment and care is a part of intervention already and this must coincide to the set of goals or expected outcomes. An evaluation must be done to assess if the goal was met. If not, identify the possible steps or decisions that hinder in the achievement of such goal and learn from it. With such complex nursing process, cautious division of duties must be planned and done for process optimization. Hence, group role is a common practice in actual nursing duties. The responsibility is given based on the individual’s familiarity of the work and confidence in handling such work. It also requires accepting responsibly a variety of group roles, participating actively on the clinical rotation’s plan, staying on task, respecting different ideas, and disagreeing to ideas and not to the person whenever necessary. It is then relevant to know how to socially interact in a nursing environment. The usual group roles in such environment are manager, recorder or checker, skeptic, and energizer or summarizer. As a manager of the nursing team on a given shift, you must keep your team on track, direct them of the steps for completion of the tasks, and make sure everyone participates. As a recorder, act as a scribe for the team and make sure everyone agreed on the plans and actions being discussed. As a skeptic, help the team to avoid coming into agreement quickly and make sure all possibilities have been explored. Try to give alternative ideas too to make sure goals are achieved and well-polished. As an energizer, uplift the spirit of the team when things go low especially in cases where there are tough or vital patients. Summarize also what has been discussed and concluded by the team. The time must also be considered when assuming group roles in accomplishing each phase of the nursing process. Since human life is crucial and imperative, each second you lose or you waste is also the same second you will never get back. Just think about it. It could have weaved another chance or a longer chance for the patient to stay with his loved ones. References Goossen, W. T. F. , Ozbolt, J. G. , Coenen, A. , Park, H. , Mead, C. ,Ehnfors, M. , and Marin, H. F. 2004) Development of a Provisional Domain Model for the Nursing Process for Use within the Health Level 7 Reference Information Model. Journal of American Medical Informatics Association [Internet]. May–June, 11(3), pp. 186–194. Available from: http://www. pubmedcentral. nih. gov/ [Accessed 20 January 2007]. Joubert, T. (n. d. ) Roles and social interaction. Hagar [Internet]. Available from: http://hagar. up. ac. za/ [Accessed 20 January 2007]. Mount Mercy College. (n. d. ) Nursing process guidelines [Internet]. Version 8. 19. 1. Iowa, MMC. Available from: http://www. mtmercy. edu/ [Accessed 20 January 2007]. How to cite Group Roles and the Nursing Process, Essays