Extracted from text ... Number 47 - Part 5
Investment Basics XXXV
Do averaging strategies add value?
Averaging strategies are frequently proposed by financial advisors, the press and some finance texts as a means of simultaneously
reducing risk and increasing the return on a new investment. This flies in the face of financial theory which postulates that risk and return
should be positively correlated. Such strategies therefore warrant further investigation.
The rationale behind averaging strategies is that, by phasing in an investment over a period of time rather than committing the full
amount immediately, the investor will not be fully exposed to ..
Extracted from text ... Number 47 - Part 4
EG van den Berg and CH van Schalkwyk
Spotlight on the South African environment of securitisation-and asset-backed securities
Internationally securitisation and asset-backed securities have found wide application within the lending and investment environment.
Securitisation originated in the United States of America, the first application being the repackaging of mortgage cash flows into mortgagebacked
securities. It is believed that the outstanding asset-backed securities as a result of mortgage securitisation in that country amounts
to $691 bn (Fanie Mae, 1997). Securitisation and asset-backed securities have grown substantially in the United States of America and
Extracted from text ... Number 47 - Part 3
EvdM Smit en EJ Verster
Toetse vir sielkundige hindernisse in Suid-Afrikaanse aandelebeursindekse
1. Inleiding en probleemstelling
In Suid-Afrika verwys finansi?le verslaggewers redelik algemeen na "weerstandsvlakke" of "steunvlakke" waarbinne aandele op die
Johannesburgse Effektebeurs verhandel. So word berig (Beeld, 1994: S4) dat die Nywerheidsindeks vir die eerste keer sedert 1985 deur 'n
weerstandsvlak gebreek het en op 'n hoogtepunt van 6 413 punte te staan gekom het. In die geval van die goudprys word ook algemeen
aanvaar dat die metaal verhandel tussen bepaalde steunvlakke. So word berig (Beeld, 1994: S8) dat die goudprys slegs af en ..
Extracted from text ... Number 47 - Part 2
R Lawson and M Ward
Price performance of newly listed shares on the Johannesburg Stock Exchange
The Johannesburg Stock Exchange (JSE) plays the single most significant role in capital allocation in South Africa and, with a market
capitalisation of US$275 billion in March 1997, the JSE was the twelfth largest stock-market in the world. Equity capital raised through new
listings, rights issues and scrip dividends during 1995 alone was almost R20 billion, indicating that research into the efficiency of the
market in pricing new listings is important.
The following objectives for this study ..
Extracted from text ... Number 47 - Part 1
The share price reaction on the Johannesburg Stock Exchange for special (extra) dividend announcements
The "information content of dividends" hypothesis has emerged from the work of Lintner (1956) and Miller and Modigliani (1961). This
hypothesis states that company managers use dividend announcements to signal their belief about the prospects of the firm. An
announcement of an increase in the dividend rate reflects management's belief that the firm's earnings in the foreseeable future will be
sufficiently high to sustain payment at the increased rate. Similarly, an announcement of a dividend decrease occurs ..