Southwest Airlines Investor Relations (4)

Historical Stock PricesThe main(Init) function should accept as parameter the company symbol, lookback period, window size,and the end date. Myth: The biggest danger to the Fed is that, if it reverses its policy of zero interest rates and stops its bond buying, stock and bond markets will drop dramatically. The Fed has happily accepted the role of market puppet master, with Federal Bank governors seeking celebrity status, and piping up about inflation, the level of stock prices and interest rate policy.

Given the build up we have had over the last few years to the momentous decision to change interest rate policy, think of how much our perceptions of Fed power will change, if stock and bond markets respond with yawns to an interest rate policy shift. The high stock price prevents many people from buying the stock, and is why many investors in Google stock wish it would split.Historical Stock Prices

I wonder…stock options are basically the pairing of two transactions: 1) a subsidy to workers based on changes in the share price, which are an expense, and (2) an arbitrary stock transaction that happens as part of the compensation, which creates an accounting shadow of financial cash inflows and outflows. Before you can buy Google stock, you will of course need to get money into your account.

If we imagine a risk-free world where all options are exercised, and firms sterilize financial cash flows by buying shares when they issue stock options, we would see that this would cause gross cash distributions to rise, even though there would be no net effect on firm capitalization. They write that about 44%-47% of cash, now is returning to investors (it is near historical normal value). Can you share the chart on Fed asset purchase vs Bond yields, Corporate yields, Stock prices, GDP for these years (2009-2014) Also share dollar index chart during this period.

A Repo is where the federal reserve buys short term treasuries (3 month maturity) from the primary dealers (e.g The main American banks) which adds liquidity to the reserves of the banks and this reduces the need for them to borrow against each other. Take Apple, for example, who’s issued $20+ billion in debt this year just for stock buybacks (even though they have $200 billion in cash).

Historical Stock Prices