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While a good rule of thumb, the last 80 years worth securities litigation makes this pretty untrue.

You are absolutely right. I'm playing very loose with words; I was trying to emphasize the point that etf share creation isn't like open ended funds. Anyway, six months ago I saw double digit discounts. I trade fixed income institutionally for a living so I know when an esoteric group of...

um... no... how does the phrase "yuan is [hard pegged] [against the dollar]" mean that yuan is hard against the dollar? Did you read it as "yuan is hard [pegged against] the dollar"? If you were from an english speaking country, you might not have misconstrued a fairly common sentence...

I was wrong. But not for the reason you stated. I completely forgot that in 2007 Yuan became soft pegged to a basket of currencies and no longer exclusively on the dollar. Your reasoning is completely wrong. The reason why chinese imports are cheap is PRECISELY because they pegged at fixed...

The last time I was in china was a good year and half ago, so if my info is outdated, someone should correct me. A dollar cannot buy one week's grocery in any major city. Rural factory workers may earn 5-10 cents an hour (which I kind of doubt, but I don't know much about this), but it's...

I think I was very imprecise with what I said. I meant that they don't issue new shares ala open ended funds. They can of course come to the market with a new issuance like any company can.

Is there a point to this question or just an exercise in purchasing power parity?

The only thing that links the price of an ETF to its intrinsic value is arbitrage. For popular indices, because it's relative straight forward, the price of the ETF shouldn't go too far away from its sum of the market value of its underlying. More esoteric stuff (I own a bunch of financial...

UC Barkeley? That's a respectable 10th place. UC Irvine doesn't rank.

They don't create new shares. They create all the shares when the trust was created, and shares of the trust are traded.

It stands to reason that central banks are terrible private sector investments. When the going's good, the government takes the cash (after all, every politician is susceptible to "secret banking conspiracy owns our central bank is taking all the cash. see! here's the filing!").

None of the major central banks are listed. Belgium is the only one I know that has a listing; I recall shareholders were quite angry with the fact that a lot of the bank's income were diverted to the government controlled shares.

What is hilarious is your ignorance. How, do tell, does a debt holder push a company into default? The debt holder might refuse to further finance the company, but so what? That's their right; Even in this extreme case (where the debt holder is a bank that refuses to finance a company because...

But that's not what happens in a bankruptcy. That's what happens in a liquidation. In a bankruptcy, the bondholder agree to cancel the debt (for example), in exchange for say $0.5 worth of equity. So, in a bankruptcy proceeding, theoretically a fully put-hedged equity holder can now presumable...

Well... that isn't true. Since in a workout, chances are the equity holder needs to give equity to debt holder to compensate them for them losing their claim, the net value that an equity holder gets out of it has to be less than what he went in with. So, say the equity holder has $1 worth of...

I'm still not sure you fully understand how a bankruptcy works. Let me try again (I think you are arguing your points in good faith and this is just something you aren't familiar with), When a company defaults in a payment, the "automatic" thing that happens is that creditors have a right to...

Is it really hard to get that bond holders are NOT given preferential treatment in a bankruptcy proceeding? That the exact opposite is true? And moreover, if you are willing to concede (hopefully you'll concede to a matter that is factually and legally true) that equity holders have a place...

WTF? This is absolutely not the case. I am a regular reader of the "Journal of Bankruptcy Law and Practice", the law industry's standard journal on this, and just about every article ever published will tell you otherwise. I don't think you understand your own business week quote. A company...

And in case you want to use willful ignorance as a defense, here's corporate finance 101 for you, (1) When a company fails to pay either interest or principal (or violate a covenant of the debt), he is in default. (2) When a company is in default, the default posture is that company head...

Equity holders are generally not called to a bankruptcy proceeding? This is certainly not the case. In fact, equity holders are the ones who file for bankruptcy protection and are the main participant of a negotiation (though I'm not a lawyer, as someone with a large CDS book and a bond book, I...