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109-750: Sandisfield State Forest is a Massachusetts state forest filled with rolling hardwood forests in the town of Sandisfield . It is managed by the Department of Conservation and Recreation . A highlight of the forest is York Lake, which was created from swampy ground by the Civilian Conservation Corps in 1935. Massachusetts Masshole Massachusite (traditional) Massachusetts ( / ˌ m æ s ə ˈ tʃ uː s ɪ t s / , /- z ɪ t s / MASS -ə- CHOO -sits, -⁠zits ; Massachusett : Muhsachuweesut [məhswatʃəwiːsət] ), officially

218-566: A Wôpanâak word muswachasut , segmented as mus(ây) "big" + wach "mountain" + -s "diminutive" + - ut "locative". This word has been translated as "near the great hill", "by the blue hills", "at the little big hill", or "at the range of hills", in reference to the Blue Hills —namely, the Great Blue Hill , located on the boundary of Milton and Canton . Massachusett has also been represented as Moswetuset . This comes from

327-580: A right to shelter law, and the first U.S. state, and one of the earliest jurisdictions in the world to legally recognize same-sex marriage . Harvard University in Cambridge is the oldest institution of higher learning in the United States , with the largest financial endowment of any university in the world. Both Harvard and MIT , also in Cambridge, are perennially ranked as either

436-428: A broad range of subfields exists within finance. Asset- , money- , risk- and investment management aim to maximize value and minimize volatility . Financial analysis assesses the viability, stability, and profitability of an action or entity. Some fields are multidisciplinary, such as mathematical finance , financial law , financial economics , financial engineering and financial technology . These fields are

545-722: A co-founder of the Special Olympics . In 1966, Massachusetts became the first state to directly elect an African American to the U.S. senate with Edward Brooke . George H. W. Bush , 41st President of the United States (1989–1993) was born in Milton in 1924. Other notable Massachusetts politicians on the national level included Joseph W. Martin Jr. , Speaker of the House (from 1947 to 1949 and then again from 1953 to 1955) and leader of House Republicans from 1939 until 1959 (where he

654-565: A frontrunner in the Democratic primaries for the 2020 presidential election. However, she later suspended her campaign and endorsed presumptive nominee Joe Biden . Two pressure cooker bombs exploded near the finish line of the Boston Marathon on April 15, 2013, at around 2:49 pm local time ( EDT ). The explosions killed three people and injured an estimated 264 others. The Federal Bureau of Investigation (FBI) later identified

763-431: A high degree of computational complexity and are slow to converge to a solution on classical computers. In particular, when it comes to option pricing, there is additional complexity resulting from the need to respond to quickly changing markets. For example, in order to take advantage of inaccurately priced stock options, the computation must complete before the next change in the almost continuously changing stock market. As

872-494: A large population of grey seals . Since 2009, there has been a significant increase in the number of Great white sharks spotted and tagged in the coastal waters off of Cape Cod . Freshwater fish species in Massachusetts include bass , carp , catfish , and trout , while saltwater species such as Atlantic cod , haddock , and American lobster populate offshore waters. Other marine species include Harbor seals ,

981-492: A loan or other debt obligations. The main areas of personal finance are considered to be income, spending, saving, investing, and protection. The following steps, as outlined by the Financial Planning Standards Board, suggest that an individual will understand a potentially secure personal finance plan after: Corporate finance deals with the actions that managers take to increase the value of

1090-738: A long-term strategic perspective regarding investment decisions that affect public entities. These long-term strategic periods typically encompass five or more years. Public finance is primarily concerned with: Central banks, such as the Federal Reserve System banks in the United States and the Bank of England in the United Kingdom , are strong players in public finance. They act as lenders of last resort as well as strong influences on monetary and credit conditions in

1199-414: A mix of an art and science , and there are ongoing related efforts to organize a list of unsolved problems in finance . Managerial finance is the branch of finance that deals with the financial aspects of the management of a company, and the financial dimension of managerial decision-making more broadly. It provides the theoretical underpin for the practice described above , concerning itself with

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1308-542: A path to decarbonize the state's economy. On April 22, 2020, Kathleen A. Theoharides, the state's Secretary of Energy and Environmental Affairs, released a Determination of Statewide Emissions limits for 2050. In her letter, Theoharides stresses that as of 2020, the Commonwealth has experienced property damage attributable to climate change of more than $ 60 billion. To ensure that the Commonwealth experiences warming no more than 1.5 °C of pre-industrialization levels,

1417-447: A result, the finance community is always looking for ways to overcome the resulting performance issues that arise when pricing options. This has led to research that applies alternative computing techniques to finance. Most commonly used quantum financial models are quantum continuous model, quantum binomial model, multi-step quantum binomial model etc. The origin of finance can be traced to the beginning of state formation and trade during

1526-436: A significant change to the state's built environment and ecosystems. In Boston alone, costs of climate change-related storms will result in $ 5 to $ 100 billion in damage. Warmer temperatures will also disrupt bird migration and flora blooming. With these changes, deer populations are expected to increase, resulting in a decrease in underbrush which smaller fauna use as camouflage. Additionally, rising temperatures will increase

1635-446: A sophisticated mathematical model is required, and thus overlaps several of the above. As a specialized practice area, quantitative finance comprises primarily three sub-disciplines; the underlying theory and techniques are discussed in the next section: DCF valuation formula widely applied in business and finance, since articulated in 1938 . Here, to get the value of the firm , its forecasted free cash flows are discounted to

1744-398: A well-diversified portfolio, achieved investment performance will, in general, largely be a function of the asset mix selected, while the individual securities are less impactful. The specific approach or philosophy will also be significant, depending on the extent to which it is complementary with the market cycle . Risk management here is discussed immediately below. A quantitative fund

1853-462: Is Boston . Other major cities are Worcester , Springfield and Cambridge . Massachusetts is also home to the urban core of Greater Boston , the largest metropolitan area in New England and a region profoundly influential upon American history , academia , and the research economy . Massachusetts has a reputation for social and political progressivism ; becoming the only U.S. state with

1962-482: Is about performing valuation and asset allocation today, based on the risk and uncertainty of future outcomes while appropriately incorporating the time value of money . Determining the present value of these future values, "discounting", must be at the risk-appropriate discount rate , in turn, a major focus of finance-theory. As financial theory has roots in many disciplines, including mathematics, statistics, economics, physics, and psychology, it can be considered

2071-474: Is its largest city. Despite its small size, Massachusetts features numerous topographically distinctive regions. The large coastal plain of the Atlantic Ocean in the eastern section of the state contains Greater Boston , along with most of the state's population, as well as the distinctive Cape Cod peninsula . To the west lies the hilly, rural region of Central Massachusetts , and beyond that,

2180-436: Is managed using computer-based mathematical techniques (increasingly, machine learning ) instead of human judgment. The actual trading is typically automated via sophisticated algorithms . Risk management , in general, is the study of how to control risks and balance the possibility of gains; it is the process of measuring risk and then developing and implementing strategies to manage that risk. Financial risk management

2289-444: Is mathematics that is actually important in this new scenario Finance theory is heavily based on financial instrument pricing such as stock option pricing. Many of the problems facing the finance community have no known analytical solution. As a result, numerical methods and computer simulations for solving these problems have proliferated. This research area is known as computational finance . Many computational finance problems have

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2398-715: Is now known as Rhode Island , and Hutchinson joined him there several years later. Religious intolerance continued, and among those who objected to this later that century were the English Quaker preachers Alice and Thomas Curwen , who were publicly flogged and imprisoned in Boston in 1676. By 1641, Massachusetts had expanded inland significantly. The Commonwealth acquired the Connecticut River Valley settlement of Springfield , which had recently disputed with—and defected from—its original administrators,

2507-657: Is often indirect, through a financial intermediary such as a bank , or via the purchase of notes or bonds ( corporate bonds , government bonds , or mutual bonds) in the bond market . The lender receives interest, the borrower pays a higher interest than the lender receives, and the financial intermediary earns the difference for arranging the loan. A bank aggregates the activities of many borrowers and lenders. A bank accepts deposits from lenders, on which it pays interest. The bank then lends these deposits to borrowers. Banks allow borrowers and lenders, of different sizes, to coordinate their activity. Investing typically entails

2616-471: Is quite wet. Frosts are frequent all winter, even in coastal areas due to prevailing inland winds. Boston has a relatively sunny climate for a coastal city at its latitude, averaging over 2,600 hours of sunshine a year. Climate change in Massachusetts will affect both urban and rural environments, including forestry, fisheries, agriculture, and coastal development. The Northeast is projected to warm faster than global average temperatures; by 2035, according to

2725-497: Is referred to as "wholesale finance". Institutions here extend the products offered , with related trading, to include bespoke options , swaps , and structured products , as well as specialized financing ; this " financial engineering " is inherently mathematical , and these institutions are then the major employers of "quants" (see below ). In these institutions, risk management , regulatory capital , and compliance play major roles. As outlined, finance comprises, broadly,

2834-471: Is the branch of economics that studies the interrelation of financial variables , such as prices , interest rates and shares, as opposed to real economic variables, i.e. goods and services . It thus centers on pricing, decision making, and risk management in the financial markets , and produces many of the commonly employed financial models . ( Financial econometrics is the branch of financial economics that uses econometric techniques to parameterize

2943-723: Is the most populous state in New England, the 16th-most-populous in the country, and the third-most densely populated , after New Jersey and Rhode Island. Massachusetts was a site of early English colonization . The Plymouth Colony was founded in 1620 by the Pilgrims of the Mayflower . In 1630, the Massachusetts Bay Colony , taking its name from the Indigenous Massachusett people , also established settlements in Boston and Salem. In 1692,

3052-485: Is the practice of protecting corporate value against financial risks , often by "hedging" exposure to these using financial instruments. The focus is particularly on credit and market risk, and in banks, through regulatory capital, includes operational risk. Financial risk management is related to corporate finance in two ways. Firstly, firm exposure to market risk is a direct result of previous capital investments and funding decisions; while credit risk arises from

3161-400: Is then often referred to as "business finance". Typically, "corporate finance" relates to the long term objective of maximizing the value of the entity's assets , its stock , and its return to shareholders , while also balancing risk and profitability . This entails three primary areas: The latter creates the link with investment banking and securities trading , as above, in that

3270-641: The American Human Development Index and the standard Human Development Index , first in per capita income , and as of 2023, first in median income . Consequently, Massachusetts typically ranks as the top U.S. state, as well as the most expensive state, for residents to live in. The Massachusetts Bay Colony was named after the Indigenous population, the Massachusett or Muhsachuweesut , whose name likely derived from

3379-665: The Bronze Age . The earliest historical evidence of finance is dated to around 3000 BCE. Banking originated in West Asia, where temples and palaces were used as safe places for the storage of valuables. Initially, the only valuable that could be deposited was grain, but cattle and precious materials were eventually included. During the same period, the Sumerian city of Uruk in Mesopotamia supported trade by lending as well as

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3488-805: The Cape Cod National Seashore and the Boston Harbor Islands National Recreation Area . In addition, the Department of Conservation and Recreation maintains a number of parks , trails, and beaches throughout Massachusetts. The primary biome of inland Massachusetts is temperate deciduous forest . Although much of Massachusetts had been cleared for agriculture, leaving only traces of old-growth forest in isolated pockets, secondary growth has regenerated in many rural areas as farms have been abandoned. Forests cover around 62% of Massachusetts. The areas most affected by human development include

3597-668: The Commonwealth of Massachusetts , is a state in the New England region of the Northeastern United States . It borders the Atlantic Ocean and Gulf of Maine to its east, Connecticut and Rhode Island to its south, New Hampshire and Vermont to its north, and New York to its west. Massachusetts is the sixth-smallest state by land area . With over seven million residents as of 2020, it

3706-552: The Connecticut Colony . This established Massachusetts's southern border in the west. However, this became disputed territory until 1803–04 due to surveying problems, leading to the modern Southwick Jog . In 1652 the Massachusetts General Court authorized Boston silversmith John Hull to produce local coinage in shilling, sixpence and threepence denominations to address a coin shortage in

3815-639: The Connecticut River Valley . Along the western border of Western Massachusetts lies the highest elevated part of the state, the Berkshires , forming a portion of the northern terminus of the Appalachian Mountains . The U.S. National Park Service administers a number of natural and historical sites in Massachusetts . Along with twelve national historic sites, areas, and corridors, the National Park Service also manages

3924-473: The Massachusetts Bay Colony —now known as Boston—in 1630. The Puritans believed the Church of England needed to be further reformed along Protestant Calvinist lines, and experienced harassment due to the religious policies of King Charles I and high-ranking churchmen such as William Laud , who would become Charles's Archbishop of Canterbury , whom they feared were re-introducing "Romish" elements to

4033-492: The common loon are becoming rare. A significant population of long-tailed ducks winter off Nantucket . Small offshore islands and beaches are home to roseate terns and are important breeding areas for the locally threatened piping plover . Protected areas such as the Monomoy National Wildlife Refuge provide critical breeding habitat for shorebirds and a variety of marine wildlife including

4142-446: The managerial application of the various finance techniques . Academics working in this area are typically based in business school finance departments, in accounting , or in management science . The tools addressed and developed relate in the main to managerial accounting and corporate finance : the former allow management to better understand, and hence act on, financial information relating to profitability and performance;

4251-496: The monarchy the former colonies were fighting against during the American Revolutionary War . The name "State of Massachusetts Bay" appeared in the first draft, which was ultimately rejected. It was also chosen to include the "Cape Islands" in reference to Martha's Vineyard and Nantucket —from 1780 to 1844, they were seen as additional and separate entities confined within the Commonwealth. Massachusetts

4360-724: The numerical methods applied here. Experimental finance aims to establish different market settings and environments to experimentally observe and provide a lens through which science can analyze agents' behavior and the resulting characteristics of trading flows, information diffusion, and aggregation, price setting mechanisms, and returns processes. Researchers in experimental finance can study to what extent existing financial economics theory makes valid predictions and therefore prove them, as well as attempt to discover new principles on which such theory can be extended and be applied to future financial decisions. Research may proceed by conducting trading simulations or by establishing and studying

4469-403: The steam engine to power factories. Canals and railroads were being used in the state for transporting raw materials and finished goods. At first, the new industries drew labor from Yankees on nearby subsistence farms, though they later relied upon immigrant labor from Europe and Canada. Although Massachusetts was the first slave-holding colony with slavery dating back to the early 1600s,

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4578-554: The "Atlas of Independence", was highly involved in both separation from Britain and the Constitution of Massachusetts , which effectively (the Elizabeth Freeman and Quock Walker cases as interpreted by William Cushing ) made Massachusetts the first state to abolish slavery. David McCullough points out that an equally important feature was its placing for the first time the courts as a co-equal branch separate from

4687-484: The 19th century, Massachusetts became a national leader in the American Industrial Revolution , with factories around cities such as Lowell and Boston producing textiles and shoes, and factories around Springfield producing tools, paper, and textiles. The state's economy transformed from one based primarily on agriculture to an industrial one, initially making use of water-power and later

4796-462: The 48 states. After the world war, the economy of eastern Massachusetts transformed from one based on heavy industry into a service-based economy . Government contracts, private investment, and research facilities led to a new and improved industrial climate, with reduced unemployment and increased per capita income. Suburbanization flourished, and by the 1970s, the Route 128 / Interstate 95 corridor

4905-677: The British government, were a primary reason for the unity of the Thirteen Colonies and the outbreak of the American Revolution in 1775. The Battles of Lexington and Concord , fought in Massachusetts in 1775, initiated the American Revolutionary War . George Washington , later the first president of the future country, took over what would become the Continental Army after the battle. His first victory

5014-859: The British monarchy, including open rebellion under the Dominion of New England in the 1680s. Protests against British attempts to tax the colonies after the French and Indian War ended in 1763 led to the Boston Massacre in 1770, and the 1773 Boston Tea Party escalated tensions. In 1774, the Intolerable Acts targeted Massachusetts with punishments for the Boston Tea Party and further decreased local autonomy, increasing local dissent. Anti-Parliamentary activity by men such as Samuel Adams and John Hancock , followed by reprisals by

5123-636: The Civil War. Massachusetts was the first state to recruit, train, and arm a Black regiment with White officers, the 54th Massachusetts Infantry Regiment . In 1852, Massachusetts became the first state to pass compulsory education laws. Although the U.S. stock market had sustained steep losses the last week in October 1929, Tuesday, October 29 is remembered as the beginning of the Great Depression. The Boston Stock Exchange , drawn into

5232-517: The Colony of Georgia in 1735.) Later, Adams was active in early American foreign affairs and succeeded Washington as the second president of the United States . His son, John Quincy Adams , also from Massachusetts, would go on to become the nation's sixth president. From 1786 to 1787, an armed uprising led by Revolutionary War veteran Daniel Shays , now known as Shays' Rebellion , wrought havoc throughout Massachusetts and ultimately attempted to seize

5341-851: The Greater Boston area in the east and the Springfield metropolitan area in the west, although the latter includes agricultural areas throughout the Connecticut River Valley. There are 219 endangered species in Massachusetts. A number of species are doing well in the increasingly urbanized Massachusetts. Peregrine falcons utilize office towers in larger cities as nesting areas, and the population of coyotes , whose diet may include garbage and roadkill, has been increasing in recent decades. White-tailed deer , raccoons , wild turkeys , and eastern gray squirrels are also found throughout Massachusetts. In more rural areas in

5450-576: The Massachusetts Marijuana Legalization Initiative , also known as Question 4. Massachusetts is the seventh-smallest state in the United States . It is located in the New England region of the Northeastern United States . It has an area of 10,555 square miles (27,340 km ), 25.7% of which is water. Several large bays distinctly shape its coast, giving it the nickname "the Bay State". Boston

5559-521: The Northeast United States has risen by ten percent from 1895 to 2011, and the number of heavy precipitation events has increased by seventy percent during that time. These increased precipitation patterns are focused in the winter and spring. Increasing temperatures coupled with increasing precipitation will result in earlier snow melts and subsequent drier soil in the summer months. The shifting climate in Massachusetts will result in

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5668-540: The U. S. Global Change Research Program, the Northeast is "projected to be more than 3.6°F (2°C) warmer on average than during the preindustrial era". As of August 2016, the EPA reports that Massachusetts has warmed by over two degrees Fahrenheit, or 1.1 degrees Celsius. Shifting temperatures also result in the shifting of rainfall patterns and the intensification of precipitation events. To that end, average precipitation in

5777-478: The above " Fundamental theorem of asset pricing ". The subject has a close relationship with financial economics, which, as outlined, is concerned with much of the underlying theory that is involved in financial mathematics: generally, financial mathematics will derive and extend the mathematical models suggested. Computational finance is the branch of (applied) computer science that deals with problems of practical interest in finance, and especially emphasizes

5886-501: The behavior of people in artificial, competitive, market-like settings. Behavioral finance studies how the psychology of investors or managers affects financial decisions and markets and is relevant when making a decision that can impact either negatively or positively on one of their areas. With more in-depth research into behavioral finance, it is possible to bridge what actually happens in financial markets with analysis based on financial theory. Behavioral finance has grown over

5995-406: The broad transition zone to Humid Subtropical climates. The warm to hot summers render the oceanic climate rare in this transition, only applying to exposed coastal areas such as on the peninsula of Barnstable County . The climate of Boston is quite representative for the commonwealth, characterized by summer highs of around 81 °F (27 °C) and winter highs of 35 °F (2 °C), and

6104-579: The business's credit policy and is often addressed through credit insurance and provisioning . Secondly, both disciplines share the goal of enhancing or at least preserving, the firm's economic value , and in this context overlaps also enterprise risk management , typically the domain of strategic management . Here, businesses devote much time and effort to forecasting , analytics and performance monitoring . (See ALM and treasury management .) For banks and other wholesale institutions, risk management focuses on managing, and as necessary hedging,

6213-891: The capital raised will generically comprise debt, i.e. corporate bonds , and equity , often listed shares . Re risk management within corporates, see below . Financial managers—i.e. as distinct from corporate financiers—focus more on the short term elements of profitability, cash flow, and " working capital management " ( inventory , credit and debtors ), ensuring that the firm can safely and profitably carry out its financial and operational objectives; i.e. that it: (1) can service both maturing short-term debt repayments, and scheduled long-term debt payments, and (2) has sufficient cash flow for ongoing and upcoming operational expenses . (See Financial management and Financial planning and analysis .) Public finance describes finance as related to sovereign states, sub-national entities, and related public entities or agencies. It generally encompasses

6322-546: The colony did not move to renew his contract or appoint a new mintmaster. The coinage was a contributing factor to the revocation of the Massachusetts Bay Colony charter in 1684. In 1691, the colonies of Massachusetts Bay and Plymouth were united (along with present-day Maine , which had previously been divided between Massachusetts and New York ) into the Province of Massachusetts Bay . Shortly after,

6431-509: The colony. Before that point, the colony's economy had been entirely dependent on barter and foreign currency, including English, Spanish, Dutch, Portuguese and counterfeit coins. In 1661, shortly after the restoration of the British monarchy , the British government considered the Boston mint to be treasonous. However, the colony ignored the English demands to cease operations until at least 1682, when Hull's contract as mintmaster expired, and

6540-631: The departure of several manufacturing companies, the state's industrial economy began to decline during the early 20th century. By the 1920s, competition from the American South and Midwest , followed by the Great Depression , led to the collapse of the three main industries in Massachusetts: textiles, shoemaking, and precision mechanics. This decline would continue into the latter half of the 20th century. Between 1950 and 1979,

6649-538: The early 1600s, European colonists caused virgin soil epidemics such as smallpox , measles , influenza , and perhaps leptospirosis in what is now known as the northeastern region of the United States. Between 1617 and 1619, a disease that was most likely smallpox killed approximately 90% of the Massachusetts Bay Native Americans . The first English colonists in Massachusetts Bay Colony landed with Richard Vines and spent

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6758-461: The economy. Development finance , which is related, concerns investment in economic development projects provided by a (quasi) governmental institution on a non-commercial basis; these projects would otherwise not be able to get financing . A public–private partnership is primarily used for infrastructure projects: a private sector corporate provides the financing up-front, and then draws profits from taxpayers or users. Climate finance , and

6867-465: The endangered North Atlantic right whales , as well as humpback whales , fin whales , minke whales , and Atlantic white-sided dolphins . The European corn borer , a significant agricultural pest, was first found in North America near Boston, Massachusetts in 1917. Most of Massachusetts has a humid continental climate , with cold winters and warm summers. Far southeast coastal areas are

6976-672: The excess, intending to earn a fair return. Correspondingly, an entity where income is less than expenditure can raise capital usually in one of two ways: (i) by borrowing in the form of a loan (private individuals), or by selling government or corporate bonds ; (ii) by a corporation selling equity , also called stock or shares (which may take various forms: preferred stock or common stock ). The owners of both bonds and stock may be institutional investors —financial institutions such as investment banks and pension funds —or private individuals, called private investors or retail investors. (See Financial market participants .) The lending

7085-508: The exclusion of same-sex couples from the right to a civil marriage was unconstitutional. In 2004, Massachusetts senator John Kerry , who won the Democratic nomination for President of the United States, lost to incumbent George W. Bush . Eight years later, former Massachusetts governor Mitt Romney (the Republican nominee) lost to incumbent Barack Obama in 2012. Another eight years later, Massachusetts senator Elizabeth Warren became

7194-497: The executive. (The Constitution of Vermont , adopted in 1777, represented the first partial ban on slavery among the states. Vermont became a state in 1791 but did not fully ban slavery until 1858 with the Vermont Personal Liberty Law. The Pennsylvania Gradual Abolition Act of 1780 made Pennsylvania the first state to abolish slavery by statute - the second English colony to do so; the first having been

7303-691: The federal Springfield Armory . The rebellion was one of the major factors in the decision to draft a stronger national constitution to replace the Articles of Confederation . On February 6, 1788, Massachusetts became the sixth state to ratify the United States Constitution . In 1820, Maine separated from Massachusetts and entered the Union as the 23rd state due to the ratification of the Missouri Compromise . During

7412-510: The field is referred to as quantitative finance and / or mathematical finance, and comprises primarily the three areas discussed. The main mathematical tools and techniques are, correspondingly: Mathematically, these separate into two analytic branches : derivatives pricing uses risk-neutral probability (or arbitrage-pricing probability), denoted by "Q"; while risk and portfolio management generally use physical (or actual or actuarial) probability, denoted by "P". These are interrelated through

7521-416: The field. Quantum finance is an interdisciplinary field, in which theories and methods developed by quantum physicists and economists are applied to solve financial problems. It represents a branch known as econophysics. Although quantum computational methods have been around for quite some time and use the basic principles of physics to better understand the ways to implement and manage cash flows, it

7630-410: The firm to the shareholders, the sources of funding and the capital structure of corporations, and the tools and analysis used to allocate financial resources. While corporate finance is in principle different from managerial finance , which studies the financial management of all firms rather than corporations alone, the concepts are applicable to the financial problems of all firms, and this area

7739-451: The first scholarly work in this area. The field is largely focused on the modeling of derivatives —with much emphasis on interest rate- and credit risk modeling —while other important areas include insurance mathematics and quantitative portfolio management . Relatedly, the techniques developed are applied to pricing and hedging a wide range of asset-backed , government , and corporate -securities. As above , in terms of practice,

7848-627: The flows of capital that take place between individuals and households ( personal finance ), governments ( public finance ), and businesses ( corporate finance ). "Finance" thus studies the process of channeling money from savers and investors to entities that need it. Savers and investors have money available which could earn interest or dividends if put to productive use. Individuals, companies and governments must obtain money from some external source, such as loans or credit, when they lack sufficient funds to run their operations. In general, an entity whose income exceeds its expenditure can lend or invest

7957-400: The foundation of business and accounting . In some cases, theories in finance can be tested using the scientific method , covered by experimental finance . The early history of finance parallels the early history of money , which is prehistoric . Ancient and medieval civilizations incorporated basic functions of finance, such as banking, trading and accounting, into their economies. In

8066-712: The fundamental risk mitigant here, investment managers will apply various hedging techniques as appropriate, these may relate to the portfolio as a whole or to individual stocks . Bond portfolios are often (instead) managed via cash flow matching or immunization , while for derivative portfolios and positions, traders use "the Greeks" to measure and then offset sensitivities. In parallel, managers — active and passive — will monitor tracking error , thereby minimizing and preempting any underperformance vs their "benchmark" . Quantitative finance—also referred to as "mathematical finance"—includes those finance activities where

8175-506: The heart of investment management is asset allocation — diversifying the exposure among these asset classes , and among individual securities within each asset class—as appropriate to the client's investment policy , in turn, a function of risk profile, investment goals, and investment horizon (see Investor profile ). Here: Overlaid is the portfolio manager's investment style —broadly, active vs passive , value vs growth , and small cap vs. large cap —and investment strategy . In

8284-444: The last few decades to become an integral aspect of finance. Behavioral finance includes such topics as: A strand of behavioral finance has been dubbed quantitative behavioral finance , which uses mathematical and statistical methodology to understand behavioral biases in conjunction with valuation. Quantum finance involves applying quantum mechanical approaches to financial theory, providing novel methods and perspectives in

8393-423: The late 19th century, the global financial system was formed. In the middle of the 20th century, finance emerged as a distinct academic discipline, separate from economics. The earliest doctoral programs in finance were established in the 1960s and 1970s. Today, finance is also widely studied through career -focused undergraduate and master's level programs. As outlined, the financial system consists of

8502-427: The latter, as above, are about optimizing the overall financial structure, including its impact on working capital. Key aspects of managerial finance thus include: The discussion, however, extends to business strategy more broadly, emphasizing alignment with the company's overall strategic objectives; and similarly incorporates the managerial perspectives of planning, directing, and controlling. Financial economics

8611-415: The most or among the most highly regarded academic institutions in the world. Massachusetts's public-school students place among the top tier in the world in academic performance. Massachusetts is the most educated and one of the most highly developed and wealthiest U.S. states, ranking first in the percentage of population 25 and over with either a bachelor's degree or advanced degree , first on both

8720-645: The name of the Moswetuset Hummock (meaning "hill shaped like an arrowhead") in Quincy , where Plymouth Colony commander Myles Standish (a hired English military officer) and Squanto (a member of the Patuxet band of the Wamponoag people , who have since died off due to contagious diseases brought by colonists) met Chief Chickatawbut in 1621. Although the designation "Commonwealth" forms part of

8829-624: The national church. They decided to colonize to Massachusetts, intending to establish what they considered an "ideal" religious society. The Massachusetts Bay Colony was colonized under a royal charter, unlike the Plymouth colony, in 1629. Both religious dissent and expansionism resulted in several new colonies being founded, shortly after Plymouth and Massachusetts Bay, elsewhere in New England. The Massachusetts Bay banished dissenters such as Anne Hutchinson and Roger Williams due to religious and political conflict. In 1636, Williams colonized what

8938-469: The new province's first governor, William Phips , arrived. The Salem witch trials also took place, where a number of men and women were hanged for alleged witchcraft . The most destructive earthquake known to date in New England occurred on November 18, 1755, causing considerable damage across Massachusetts. Massachusetts was a center of the movement for independence from Great Britain . Colonists in Massachusetts had long had uneasy relations with

9047-524: The number of Massachusetts residents involved in textile manufacturing declined from 264,000 to 63,000. The 1969 closure of the Springfield Armory , in particular, spurred an exodus of high-paying jobs from Western Massachusetts, which suffered greatly as it de-industrialized during the century's last 40 years. Massachusetts manufactured 3.4 percent of total United States military armaments produced during World War II , ranking tenth among

9156-568: The number of reported Lyme disease cases in the state. Ticks can transmit the disease once temperatures reach 45 degrees, so shorter winters will increase the window of transmission. These warmer temperatures will also increase the prevalence of Asian tiger mosquitoes , which often carry the West Nile virus . To fight this change, the Massachusetts Executive Office of Energy and Environmental Affairs has outlined

9265-444: The present using the weighted average cost of capital for the discount factor. For share valuation investors use the related dividend discount model . Financial theory is studied and developed within the disciplines of management , (financial) economics , accountancy and applied mathematics . Abstractly, finance is concerned with the investment and deployment of assets and liabilities over "space and time"; i.e., it

9374-409: The purchase of stock , either individual securities or via a mutual fund , for example. Stocks are usually sold by corporations to investors so as to raise required capital in the form of " equity financing ", as distinct from the debt financing described above. The financial intermediaries here are the investment banks . The investment banks find the initial investors and facilitate the listing of

9483-749: The rate of 20 percent per year. By 1200 BCE, cowrie shells were used as a form of money in China . The use of coins as a means of representing money began in the years between 700 and 500 BCE. Herodotus mentions the use of crude coins in Lydia around 687 BCE and, by 640 BCE, the Lydians had started to use coin money more widely and opened permanent retail shops. Shortly after, cities in Classical Greece , such as Aegina , Athens , and Corinth , started minting their own coins between 595 and 570 BCE. During

9592-466: The re-routing of several other major highways. The project was often controversial, with numerous claims of graft and mismanagement, and with its initial price tag of $ 2.5   billion increasing to a final tally of over $ 15   billion. Nonetheless, the Big Dig changed the face of Downtown Boston and connected areas that were once divided by elevated highway. Much of the raised old Central Artery

9701-724: The related Environmental finance , address the financial strategies, resources and instruments used in climate change mitigation . Investment management is the professional asset management of various securities—typically shares and bonds, but also other assets, such as real estate, commodities and alternative investments —in order to meet specified investment goals for the benefit of investors. As above, investors may be institutions, such as insurance companies, pension funds, corporations, charities, educational establishments, or private investors, either directly via investment contracts or, more commonly, via collective investment schemes like mutual funds, exchange-traded funds , or REITs . At

9810-413: The relationships suggested.) The discipline has two main areas of focus: asset pricing and corporate finance; the first being the perspective of providers of capital, i.e. investors, and the second of users of capital; respectively: Financial mathematics is the field of applied mathematics concerned with financial markets ; Louis Bachelier's doctoral thesis , defended in 1900, is considered to be

9919-475: The securities, typically shares and bonds. Additionally, they facilitate the securities exchanges , which allow their trade thereafter, as well as the various service providers which manage the performance or risk of these investments. These latter include mutual funds , pension funds , wealth managers , and stock brokers , typically servicing retail investors (private individuals). Inter-institutional trade and investment, and fund-management at this scale ,

10028-488: The state became a center of progressivist and abolitionist (anti-slavery) activity in the years leading up to the American Civil War . Horace Mann made the state's school system a national model. Henry David Thoreau and Ralph Waldo Emerson , both philosophers and writers from the state, also made major contributions to American philosophy. Furthermore, members of the transcendentalist movement within

10137-616: The state emphasized the importance of the natural world and emotion to humanity. Although significant opposition to abolitionism existed early on in Massachusetts, resulting in anti-abolitionist riots between 1835 and 1837, abolitionist views there gradually increased throughout the next few decades. Abolitionists John Brown and Sojourner Truth lived in Springfield and Northampton, respectively, while Frederick Douglass lived in Boston and Susan B. Anthony in Adams . The works of such abolitionists contributed to Massachusetts's actions during

10246-1170: The state will work towards two goals by 2050: to achieve net-zero emissions , and to reduce greenhouse gas emissions by 85 percent overall. The State of Massachusetts has developed a plethora of incentives to encourage the implementation of renewable energy and efficient appliances and home facilities. The Mass Save program, formed in conjunction with the State by several companies that provide power and gas in Massachusetts, provides homeowners and renters with monetary incentives to retrofit their homes with efficient HVAC equipment and other household appliances. Appliances such as water heaters, air conditioners, washers and driers, and heat pumps are eligible for rebates in order to incentivize change. Finance In these financial systems, assets are bought, sold, or traded as financial instruments , such as currencies , loans , bonds , shares , stocks , options , futures , etc. Assets can also be banked , invested , and insured to maximize value and minimize loss. In practice, risks are always present in any financial action and entities. Due to its wide scope,

10355-416: The state's official name, it has no practical implications in modern times, and Massachusetts has the same position and powers within the United States as other states. John Adams may have chosen the word in 1779 for the second draft of what became the 1780 Massachusetts Constitution ; unlike the word "state", the word " commonwealth " had the connotation of a republic at the time. This was in contrast to

10464-509: The suspects as brothers Dzhokhar Tsarnaev and Tamerlan Tsarnaev . The ensuing manhunt ended on April 19 when thousands of law enforcement officers searched a 20-block area of nearby Watertown . Dzhokhar later said he was motivated by extremist Islamic beliefs and learned to build explosive devices from Inspire , the online magazine of al-Qaeda in the Arabian Peninsula . On November 8, 2016, Massachusetts voted in favor of

10573-623: The three areas of personal finance, corporate finance, and public finance. These, in turn, overlap and employ various activities and sub-disciplines—chiefly investments , risk management, and quantitative finance . Personal finance refers to the practice of budgeting to ensure enough funds are available to meet basic needs, while ensuring there is only a reasonable level of risk to lose said capital. Personal finance may involve paying for education, financing durable goods such as real estate and cars, buying insurance , investing, and saving for retirement . Personal finance may also involve paying for

10682-669: The town of Salem and surrounding areas experienced one of America's most infamous cases of mass hysteria , the Salem witch trials . In the late 18th century, Boston became known as the "Cradle of Liberty" for the agitation there that later led to the American Revolution . In 1786, Shays' Rebellion , a populist revolt led by disaffected American Revolutionary War veterans, influenced the United States Constitutional Convention . Originally dependent on agriculture , fishing , and trade , Massachusetts

10791-446: The use of interest. In Sumerian, "interest" was mas , which translates to "calf". In Greece and Egypt, the words used for interest, tokos and ms respectively, meant "to give birth". In these cultures, interest indicated a valuable increase, and seemed to consider it from the lender's point of view. The Code of Hammurabi (1792–1750 BCE) included laws governing banking operations. The Babylonians were accustomed to charging interest at

10900-635: The various positions held by the institution—both trading positions and long term exposures —and on calculating and monitoring the resultant economic capital , and regulatory capital under Basel III . The calculations here are mathematically sophisticated, and within the domain of quantitative finance as below. Credit risk is inherent in the business of banking, but additionally, these institutions are exposed to counterparty credit risk . Banks typically employ Middle office "Risk Groups" , whereas front office risk teams provide risk "services" (or "solutions") to customers. Additional to diversification ,

11009-475: The western part of Massachusetts, larger mammals such as moose and black bears have returned, largely due to reforestation following the regional decline in agriculture. Massachusetts is located along the Atlantic Flyway , a major route for migratory waterfowl along the eastern coast. Lakes in central Massachusetts provide habitat for many species of fish and waterfowl, but some species such as

11118-625: The whirlpool of panic selling that beset the New York Stock Exchange, lost over 25 percent of its value in two days of frenzied trading. The BSE, nearly 100 years old at the time, had helped raise the capital that had funded many of the Commonwealth's factories, railroads, and businesses. " Governor of Massachusetts Frank G. Allen appointed John C. Hull the first Securities Director of Massachusetts. Hull would assume office in January 1930, and his term would end in 1936. With

11227-653: The winter in Biddeford Pool near Cape Porpoise (after 1820 the State of Maine) in 1616. The Puritans , arrived at Plymouth in 1620. This was the second permanent English colony in the part of North America that later became the United States, after the Jamestown Colony . The "First Thanksgiving" was celebrated by the Puritans after their first harvest in the " New World " and lasted for three days. They were soon followed by other Puritans, who colonized

11336-642: Was dotted with high-tech companies who recruited graduates of the area's many elite institutions of higher education. In 1987, the state received federal funding for the Central Artery/Tunnel Project. Commonly known as "the Big Dig ", it was, at the time, the biggest federal highway project ever approved. The project included making the Central Artery , part of Interstate 93 , into a tunnel under downtown Boston, in addition to

11445-545: Was originally inhabited by tribes of the Algonquian language family , including Wampanoag , Narragansett , Nipmuc , Pocomtuc , Mahican , and Massachusett . While cultivation of crops like squash and corn were an important part of their diet, the people of these tribes hunted , fished , and searched the forest for most of their food. Villagers lived in lodges called wigwams as well as longhouses . Tribes were led by male or female elders known as sachems . In

11554-556: Was replaced with the Rose Fitzgerald Kennedy Greenway . The project also improved traffic conditions along several routes. The Kennedy family was prominent in 20th-century Massachusetts politics. The children of businessman and ambassador Joseph P. Kennedy Sr. included John F. Kennedy , who was a senator and U.S. president before his assassination in 1963; Ted Kennedy , a senator from 1962 until his death in 2009; and Eunice Kennedy Shriver ,

11663-706: Was the siege of Boston in the winter of 1775–76, after which the British were forced to evacuate the city. The event is still celebrated in Suffolk County only every March 17 as Evacuation Day . On the coast, Salem became a center for privateering . Although the documentation is incomplete, about 1,700 letters of marque , issued on a per-voyage basis, were granted during the American Revolution. Nearly 800 vessels were commissioned as privateers, which were credited with capturing or destroying about 600 British ships. Bostonian John Adams , known as

11772-720: Was the only Republican to serve as Speaker between 1931 and 1995), John W. McCormack , Speaker of the House in the 1960s, and Tip O'Neill , whose service as Speaker of the House from 1977 to 1987 was the longest continuous tenure in United States history. On May 17, 2004, Massachusetts became the first state in the U.S. to legalize same-sex marriage . This followed the Massachusetts Supreme Judicial Court 's decision in Goodridge v. Department of Public Health in November 2003, which determined that

11881-674: Was transformed into a manufacturing center during the Industrial Revolution . Before the American Civil War , the state was a center for the abolitionist , temperance , and transcendentalist movements. During the 20th century, the state's economy shifted from manufacturing to services ; and in the 21st century, Massachusetts has become the global leader in biotechnology , and also excels in artificial intelligence , engineering , higher education , finance , and maritime trade . The state's capital and most populous city , as well as its cultural and financial center ,

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