Introduction to Stocks and Shares

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Posted on November 27, 2011 by admin

The concepts involving stocks and shares are often baffling to people. However, it is not quite as complex as people make out. At its most basic, a share of stock is a share of ownership in a corporation, when someone owns more than one such stock, they are known as a shareholder. These shares can take a number of forms and can influence whether or not a person owning them can vote in corporate decisions. Like most things in our society, however, the concepts involved have a long history dating back to Roman times and play large role in shaping everyday life.

The Roman Empire contracted many of its services to private groups called publicani. Shares in these were called socci when the cooperatives were large, and particulae for smaller companies (like todays Over-The-Counter shares). Records are small for this time but there is an account of it in Edward Chancellor’s Devil Take The Hindmost. In this book he refers to speculation that these shares were very widespread, possibly causing the first of what is known as speculative bubble in stocks, when price of stocks rise and become overvalued by any measure. From the Middle Ages onwards the first company to issue shares of stock was the Dutch East India Company in 1606. This is notable as it is of great interest to historians due to the legalities of their actions.

But what about today How are shares managed in modern Britain First it should be noted that shares can be held not just in stock, but also in mutual funds, limited partnerships, and REIT’s (Real Estate Investment Trust), but shares in stock are the most well known forms and there are some different versions of it in the modern day: Common Stock: This normally carries voting rights that can be used in corporate decisions.

Preferred Stock: This does not typically carry a voting right, but the owner of preferred stock is legally allowed receive a certain amount of dividend (payments made by a corporation to its shareholder members) before any can be issued to others. One of the largest stock exchanges in the world is the LSE, or London Stock Exchange near St. Paul’s Cathedral in the City of London. Founded in 1801 it deals with the stocks of around 3,233 corporations, showing the sheer size and infrastructure that shares have today.

Double Trouble for Savers

Posted on February 3, 2012 by admin

In the wake of the economic crisis central banks around the world slashed interest rates to make it easier for businesses, and particularly homeowners, to borrow. With record levels of personal debt – particularly related to property – it was deemed that the best course of action was to lower the interest rate to a historically low level, where it has stayed for the best part of three years.

Whilst this has been greatly beneficial to homeowners, who now face the cheapest repayments as a proportion of monthly income since 1997, it has meant that people who try to save money are finding themselves in a tricky situation.

That’s not to say that there aren’t good deals out there, one industry leading account is the saving account from Santander that is currently being offered by the Spanish bank (click the link for details). However, such deals are few and far between and not always available to everyone.

The biggest problem is that whilst low interest rates are great for people who owe money, they don’t make it easy for people who are trying to save. Low interest rates mean that putting money away in savings accounts and ISAs doesn’t offer great returns, encouraging people to look at more exotic types of investment which the average customer might not be so happy with.

On it’s own, this might not be too much of a problem, after all, a low interest rate has good and bad sides as mentioned above. Recently for savers the problem has been that the inflation rate – basically the speed at which things get more expensive – has been very high, so people who have saved money have literally been seeing their savings become less valuable as time passes rather than the opposite.

The solution, of course, is to put money into debt if you happen to have a mortgage or a personal loan that you need to pay off. If you don’t, it’s difficult to find a truly good return for your money outside the stock market, and as we’ve all seen in recent years, this can be particularly tricky.

In the not too distant future, however, help may be at hand. Consistent quantitative easing from the Bank of England suggests that inflation might be about to come down. Quantitative easing (basically printing money) is often said to come with the risk of inflation, that the Bank is so willing to do it suggests that long term inflationary pressures may well be low.

In fact, some leading experts are suggesting that inflation may dip below 1% by the end of the year or that we may even experience deflation for the first time in years. Whilst deflation carries it’s own problems, a low inflationary rate will be of great relief to all concerned, particularly savers who will suddenly be able to get a decent deal out of their savings accounts.

If there’s anything the last few years have showed us, it’s that predicting the future in the financial markets is practically impossible. So, for now, the best advice for people with spare cash it to use it to pay down debt, or to speak to an independent financial adviser about the best way of getting a good return for your money.

State of the lift and escalator sector

Posted on November 27, 2011 by admin

Escalators are basically conveyer belts that carry passengers between floors. They can be found in supermarkets, train stations, airports or any other busy location that requires users to have access to more than one floor with ease. The not only allow access, but also act as a bottleneck to ease congestion. A crowd of people can be sorted into a manageable and orderly queue after using an escalator. They carry many passengers and ensure a constant flow of movement, unlike a passenger lift. Passenger lifts have a limited capacity and can only do a certain amount of journeys within any given time period; escalators operate continuously, making sure that they are always ready to take passengers and perform their service. They are suitable for many locations where passengers find it difficult or simply a hassle to use a staircase, and where another method of between-floor transport is impractical.

A good example of where an escalator is an ideal solution, and is almost essential is in an underground train station. It is unrealistic to expect passengers to climb such huge flights of stairs, and this can often lead to accidents, not to mention making the station entirely inaccessible to many disabled passengers. Underground stations can be very big, and will often see hundreds of passengers at any one time, especially in big cities. These passengers need quick and easy access to the platforms, and it is extremely advantageous for those managing the station to install an escalator to ease the massive congestion caused by this many people. It is clear that an escalator can benefit all involved in such an environment, and without one everything would simply grind to a halt.

Another application of an escalator would be in a shopping centre. This is a hugely different environment. It could see large numbers of shoppers at one time, but it would never experience the average usage of an escalator in an underground train station. Therefore the escalator must be made accordingly. This location would require a light-duty escalator, as opposed to the heavy-duty ones that are made to withstand a huge amount of wear and tear. Factors such as height, length and expected capacity must be taken into account to ensure the elevator is installed correctly and can function with as little trouble as possible. It’s not good having to call maintenance time after time due to an escalator which doesn’t suit the requirements of its location, or that has many technical faults.