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An exploration of how technology has transformed capital markets and the rise of Bitcoin as a disruptive force. Topics include the impact on pricing, stock market indices, and significant companies like Apple, Microsoft, Amazon, Facebook, and Google.
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How Technology Has Changed the Capital Markets, and a bit about Bitcoin By Neal Waner, CFP The Fortnightly Club of Redlands Meeting No. 1918, February 15th, 2018
How has technology changed the cost of an incremental unit? • the cost of an incremental unit?
Three kinds of corporate stock: • Issued • Authorized • Outstanding
What makes a stock go up in price?Expected earningsorTomorrows profits
Dow Jones Industrial Average IndexSymbol DIA30 companies in indexAverage PE of index = 22.3Top five companies = 34% of the weighting
S&P 500 IndexSymbol SPY500 companies in indexAverage PE of index = 23.0Top five companies = 12.3% of the weighting
NASDAQ IndexSymbol QQQ104 companies in indexAverage PE of index = 27.3Top five companies = 44% of weighting
NASDAQ IndexSymbol QQQ104 companies in indexAverage PE of index = 27.3Top five companies = 44% of weightingAverage PE of those five companies = 82.4Average PE of four excluding Amazon = 29.5