Investments in equities and derivatives thereof is always a risky business. To estimate the risks, experts and investors to investigate with the appropriate expertise, the underlying stock, both fundamentally as well as technically. Fundamental analysis is the identification and assessment of the fair price of a stock by using external and internal data of the enterprise, particularly by means of balance sheet analysis and assessment of market and industry development. Since stock prices always represent the future evolution of market expectations with respect to the company, are particularly current financial news of great interest. They are the driving force in the dynamics of price formation. Financial news can respecting the general financial market, and a systematic investment companies in particular concern. This news and trends may overlap and reinforce or weaken it. Room for interpretation as incurred. A leading pharmaceutical companies, for example, benefited enormously from when a drug receives marketing approval, because it has proven to be effective in clinical trials. The stock will therefore have more in the future value and share price rises. If, however, be negative industry-specific news, such as banks have been unsuccessful in the future, more capital as the lender may then be precipitated negative trend. The more serious the financial news, and developments can be derived from it, the stronger is the reaction of the stock price, as does the supply and demand in an appropriate quantity.
For this reason, the insider trading is prohibited. This means that employees may not have stock trading and knowledgeable third parties because of their insider knowledge working. So-called „directors dealings,“ the trade of business leaders in the securities of their own company, it must be reported to the federal Financial Services within five working days. Thus, price manipulation are limited. If people buy shares of their employer, usually subject to special holding periods and firm limits. Moreover, it is possible for companies and investors, shares „buy’s interest“ and to sell in order to keep price manipulation and price influences to a minimum. As soon as an ad-hoc news message were published, information is no longer considered as insider information. Companies and other publishers of financial instruments are required under the securities law to publish inside information immediately.
So-called front men will not run again, the abuse of inside information. A law enforcement designed to detectability due to the difficult, very complex. For the ordinary investor continues to be the only way to constantly monitor the financial news to evaluate, and interpret. Bank consultants help consumers or refer to investment products that the market assessment for the consumer to do, actively managed accounts or mutual funds are the traditional alternatives.