NASDAQ: A Promising Marketplace By the Office of Michael Quiel

Established more than four decades ago, the National Association of Securities Dealers Automated Quotation, or NASDAQ, serves as a worldwide market for securities trading. The market aims to give investors the opportunity to profit through its rapid, computerized exchange.

The Glowing NASDAQ Market Tower at Night Posted by Vacacion via flickr. Some rights reserved.

In February 1971, the market opened with quotes for 2,500 securities. Over the years, technology companies such as Microsoft, Cisco, Dell, Intel, Apple, and Oracle have gained prominence on the NASDAQ after the market gave them the chance to raise capital.

At present, NASDAQ runs two dozen markets and operates on six continents. Responsible for 10 percent of global securities transactions, the company trades equities, derivatives, commodities, fixed income, and options. The company merged with OMX in 2007 to form The NASDAQ OMX Group.

About Michael Quiel: A veteran investment banker, Legend Advisory Corporation owner and President Michael Quiel advises companies on going public on NASDAQ. Also serving as Manager of the Cayman Hedge Fund, Quiel acquires residential and commercial real estate as Managing Partner of Legend Asset Opportunity Master Fund.

Distressed Properties by Michael Quiel

House

House

 

In some markets today, as many as half of all homes for sale qualify as “distressed.” Distressed properties are those that have gone through foreclosure or which are being marketed as “short sales.” A short sale occurs when a homeowner can no longer afford his or her mortgage payments. Instead of the lender foreclosing on the property, the company agrees to allow the homeowner to sell it for less than the balance remaining on the loan.

Properties in a distressed state generally sell for less than market value, but they include a wide range of extra paperwork, a longer transaction process, and sometimes other frustrations. It can be helpful in these purchases to work with a broker or agent who is experienced in distressed sales and can assist the buyer in working through these complicated administrative affairs.

Sellers of distressed properties are highly motivated to make a sale, and generally willing to negotiate. Often, these sellers have little or no emotional connection to the property, which can simplify the bid process.

Although distressed properties generally sell below market value, they are becoming more and more competitive as buyers reenter the market. Foreclosure proceedings can also take more time than traditional sales. Additionally, some foreclosed properties are in rough condition, as they may have sat idle for a long time without routine maintenance.

Because both sellers and buyers in distressed sales have rights, all parties should consult a lawyer to protect their interests and ensure that the process proceeds as smoothly as possible.

About the author: Michael Quiel has more than 20 years of experience in the financial industry, and has advised clients on a wide range of financial considerations, including the purchase and sale of distressed homes.

Michael Quiel Explains the Duties of an Investment Banker

Many people have heard the term “investment banking” but may not know what it actually involves. Investment banking is a diverse field and the duties of an investment banker can vary depending on multiple factors, including the clients involved and the banker’s own focus and experience. It may be easier to understand what an investment banker does by thinking of him or her as an agent between clients and companies looking for investors. Investment banker Michael Quiel uses his experience as Principal and Managing Director of Legend Investment Management LLC to offer a basic overview of the responsibilities of his job.

General knowledge—An investment banker must be an expert in understanding the economy and financial trends. In order to work effectively, he or she also has to closely follow specific industries such as technology, real estate, automotive manufacturing, and others. Also, because the financial world is complex and full of legal pitfalls, the investment banker must have a complete understanding of financial law.

Special insight—While general knowledge of the ebb and flow of the economy is a must, many investment bankers must also have a wide range of other skills to represent clients or an employer. The investment banker’s arsenal must also include a keen analytical mind and an understanding of the intricacies of the businesses with which he or she deals. For example, an investment banker who deals with business mergers must know as much about each of the businesses as possible in order to make truly informed decisions. Analytic ability is a key skill for investment bankers because of the potential for millions of dollars and thousands of jobs to be on the line whenever financial professionals make decisions.

A Brief History of Black Monday

by Michael Quiel

On October 19, 1987, the Dow Jones Industrial Average dropped by more than 500 points, for a loss of 22.6 percent of its total value. The same day, the S& P 500 dropped 20.4 percent. At the time, this was the biggest loss Wall Street had ever seen in a single 24-hour period. That day has since come to be known as Black Monday. Many financial professionals worried that this drastic drop would precipitate a recession like the one following the crash of 1929 but, in fact, the American economy recovered relatively quickly, with the Dow regaining all of its value within two years.

The crash affected countries around the world, beginning in Hong Kong and spreading quickly throughout Europe and the United States. American markets were among the less affected, with a total fall of 22.68 percent, as compared to Hong Kong’s 45.5 percent loss and Australia’s 41.8 percent drop.

The cause of the crash remains a subject of some debate among scholars, and even today, no strong consensus has been reached. Economists have theorized that the decline was caused by market psychology, program trading, overvaluation, and illiquidity, but the most popular explanation has proved to be program trading. Program traders buy and sell stocks rapidly through computer programs based on external inputs, including the prices of securities and other measures. It is possible that these automated programs caused the market to cascade down rather than correcting itself, because the computers failed to react as human traders might have.

About the author: With more than 20 years of experience in investment banking, Michael Quiel has served since 1999 as the President of Legend Advisory Corporation, a consulting firm through which Mr. Quiel has assisted in more than $200 million in equity and debt financing. Michael Quiel began his career in finance as a stockbroker in 1987 and witnessed Black Monday firsthand.