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43-401: Tiszaújváros as a town owes its existence to the industrialization wave that took over the then- socialist Hungary after World War II . The government wanted to speed up industrial development and create new job opportunities in the north-eastern part of the country. The town was built up on the outskirts of the old village Tiszaszederkény . In legal terms the old village and the new town are

86-483: A P/E higher than others in its industry. According to Investopedia author Troy Segal and U.S. Department of State Fulbright fintech research awardee Julius Mansa, growth investing is best suited for investors who prefer relatively shorter investment horizons, higher risks, and are not seeking immediate cash flow through dividends. Some investors attribute the introduction of the growth investing strategy to investment banker Thomas Rowe Price Jr., who tested and popularized

129-400: A greater level of uncertainty. Industry to industry volatility is more or less of a risk depending. In biotechnology , for example, investors look for big profits on companies that have small market capitalizations but can be worth hundreds of millions quite quickly. The risk is high because approximately 90% of biotechnology products researched do not make it to market due to regulations and

172-416: A month for the next 3 years, regardless of the share price of their preferred stock(s), mutual funds , or exchange-traded funds . Many investors believe that dollar-cost averaging helps minimize short-term volatility by spreading risk out across time intervals and avoiding market timing. Research also shows that DCA can help reduce the total average cost per share in an investment because the method enables

215-468: A number of individual end investors into funds such as investment trusts , unit trusts , and SICAVs to make large-scale investments. Each individual investor holds an indirect or direct claim on the assets purchased, subject to charges levied by the intermediary, which may be large and varied. Approaches to investment sometimes referred to in marketing of collective investments include dollar cost averaging and market timing . Free cash flow measures

258-480: A previously settled portion of the profit, though the agent was not liable for any losses. Many will notice that the qirad is similar to the institution of the commenda later used in western Europe, though whether the qirad transformed into the commenda or the two institutions evolved independently cannot be stated with certainty. In the early 1900s, purchasers of stocks, bonds, and other securities were described in media, academia, and commerce as speculators. Since

301-477: A satisfactory overall price for all [their] holdings." Micro-investing is a type of investment strategy that is designed to make investing regular, accessible and affordable, especially for those who may not have a lot of money to invest or who are new to investing. Investments are often made indirectly through intermediary financial institutions. These intermediaries include pension funds , banks , and insurance companies. They may pool money received from

344-514: A short-term uptrend, and they usually sell them once this momentum starts to decrease. Stocks or securities purchased for momentum investing are often characterized by demonstrating consistently high returns for the past three to twelve months. However, in a bear market , momentum investing also involves short-selling securities of stocks that are experiencing a downward trend, because it is believed that these stocks will continue to decrease in value. Essentially, momentum investing generally relies on

387-463: A value investor uses analysis of the financial reports of the issuer to evaluate the security. Value investors employ accounting ratios, such as earnings per share and sales growth, to identify securities trading at prices below their worth. Warren Buffett and Benjamin Graham are notable examples of value investors. Graham and Dodd's seminal work, Security Analysis , was written in the wake of

430-407: Is generated without investing capital or bearing risk. Savings bear the (normally remote) risk that the financial provider may default. Foreign currency savings also bear foreign exchange risk : if the currency of a savings account differs from the account holder's home currency, then there is the risk that the exchange rate between the two currencies will move unfavourably so that the value of

473-642: Is known as the Industrial Revolution and took place from the mid-18th to early 19th century. It began in Great Britain, spreading to Belgium, Switzerland, Germany, and France and eventually to other areas in Europe and North America. Characteristics of this early industrialisation were technological progress, a shift from rural work to industrial labour, and financial investments in new industrial structures. Later commentators have called this

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516-414: Is less able than the tertiary sector to accommodate both increased productivity and employment opportunities; more than 40% of the world's employees are " working poor ", whose incomes fail to keep themselves and their families above the $ 2-a-day poverty line . There is also a phenomenon of deindustrialisation , as in the former USSR countries' transition to market economies, and the agriculture sector

559-433: Is often the key sector in absorbing the resultant unemployment. Investment Investment is traditionally defined as the "commitment of resources to achieve later benefits". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broader viewpoint, an investment can be defined as "to tailor the pattern of expenditure and receipt of resources to optimise

602-546: Is reasonable for a telecommunications stock to show a P/E in the low teens, in the case of hi-tech stock, a P/E in the 40s range is not unusual. When making comparisons, the P/E ratio can give you a refined view of a particular stock valuation. For investors paying for each dollar of a company's earnings, the P/E ratio is a significant indicator, but the price-to-book ratio (P/B) is also a reliable indication of how much investors are willing to spend on each dollar of company assets. In

645-587: Is the period of social and economic change that transforms a human group from an agrarian society into an industrial society . This involves an extensive reorganisation of an economy for the purpose of manufacturing . Industrialisation is associated with increase of polluting industries heavily dependent on fossil fuels . With the increasing focus on sustainable development and green industrial policy practices, industrialisation increasingly includes technological leapfrogging , with direct investment in more advanced, cleaner technologies. The reorganisation of

688-503: The Wall Street Crash of 1929 . The price to earnings ratio (P/E), or earnings multiple, is a particularly significant and recognized fundamental ratio, with a function of dividing the share price of the stock, by its earnings per share. This will provide the value representing the sum investors are prepared to expend for each dollar of company earnings. This ratio is an important aspect, due to its capacity as measurement for

731-624: The Wall Street crash of 1929 , and particularly by the 1950s, the term "investment" had come to denote the more conservative end of the securities spectrum, while " speculation " was applied by financial brokers and their advertising agencies to higher risk securities much in vogue at that time. Since the last half of the 20th century, the terms "speculation" and "speculator" have specifically referred to higher risk ventures. A value investor buys assets that they believe to be undervalued (and sells overvalued ones). To identify undervalued securities,

774-1058: The economic communities do not consider contemporary industrialisation policies as being adequate to the global south (Third World countries) or beneficial in the longer term, with the perception that they may only create inefficient local industries unable to compete in the free-trade dominated political order which industrialisation has fostered. Environmentalism and Green politics may represent more visceral reactions to industrial growth. Nevertheless, repeated examples in history of apparently successful industrialisation (Britain, Soviet Union, South Korea, China, etc.) may make conventional industrialisation seem like an attractive or even natural path forward, especially as populations grow, consumerist expectations rise and agricultural opportunities diminish. The relationships among economic growth, employment, and poverty reduction are complex, and higher productivity can sometimes lead to static or even lower employment (see jobless recovery ). There are differences across sectors , whereby manufacturing

817-399: The investment is sold, unrealised capital appreciation (or depreciation) if yet unsold. It may also consist of periodic income such as dividends , interest , or rental income. The return may also include currency gains or losses due to changes in foreign currency exchange rates . Investors generally expect higher returns from riskier investments. When a low-risk investment is made,

860-420: The paint factory started operating in 1961. Newer production units produce chemical fertilizers , polyethylene , and carbon black . An oil refinery was built too. The factories needed workers, so living quarters were needed in the town. By 1962 several houses were built, mainly using prisoner labor force, and shops and restaurants were opened as well. On 1 June 1961 the council of Tiszaszederkény moved to

903-670: The 100th anniversary of Lenin's birth – the town's name was changed to Leninváros (Lenin Town). In the 1980s the town developed slower, but steadily. In 1989 the socialist regime ended in Hungary, and in 1991 the town's name was changed to Tiszaújváros (literally: "Tisza New Town", i.e., 'New Town on the Tisza River'; another Hungarian industrial town, Sztálinváros – Stalin Town – similarly changed its name to Dunaújváros – "New Town on

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946-501: The Danube" – three decades earlier). During the 1990s the town developed fast, three churches and several new houses were built. One of the most popular tourist attractions is a thermal bath and water park with chutes. Tiszaújváros is twinned with: 47°56′N 21°05′E  /  47.933°N 21.083°E  / 47.933; 21.083 Industrialization Industrialisation ( UK ) or industrialization ( US )

989-539: The First Industrial Revolution. The " Second Industrial Revolution " labels the later changes that came about in the mid-19th century after the refinement of the steam engine , the invention of the internal combustion engine , the harnessing of electricity and the construction of canals, railways, and electric-power lines. The invention of the assembly line gave this phase a boost. Coal mines, steelworks, and textile factories replaced homes as

1032-411: The cash a company generates which is available to its debt and equity investors, after allowing for reinvestment in working capital and capital expenditure . High and rising free cash flow, therefore, tend to make a company more attractive to investors. The debt-to-equity ratio is an indicator of capital structure . A high proportion of debt , reflected in a high debt-to-equity ratio, tends to make

1075-423: The comparison of valuations of various companies. A stock with a lower P/E ratio will cost less per share than one with a higher P/E, taking into account the same level of financial performance; therefore, it essentially means a low P/E is the preferred option. An instance in which the price to earnings ratio has a lesser significance is when companies in different industries are compared. For example, although it

1118-404: The complex demands within pharmacology as the average prescription drug takes 10 years and US$ 2.5 billion worth of capital. In the medieval Islamic world , the qirad was a major financial instrument. This was an arrangement between one or more investors and an agent where the investors entrusted capital to an agent who then traded with it in hopes of making a profit. Both parties then received

1161-461: The concept of Social class , i.e., hierarchical social status defined by an individual's economic power. It has changed the family system as most people moved into cities, with extended family living apart becoming more common. The movement into more dense urban areas from less dense agricultural areas has consequently increased the transmission of diseases. The place of women in society has shifted from primary caregivers to breadwinners, thus reducing

1204-419: The desirable patterns of these flows". When expenditures and receipts are defined in terms of money, then the net monetary receipt in a time period is termed cash flow , while money received in a series of several time periods is termed cash flow stream. In finance , the purpose of investing is to generate a return on the invested asset . The return may consist of a capital gain (profit) or loss, realised if

1247-470: The economy has many unintended consequences both economically and socially. As industrial workers' incomes rise, markets for consumer goods and services of all kinds tend to expand and provide a further stimulus to industrial investment and economic growth . Moreover, family structures tend to shift as extended families tend to no longer live together in one household, location or place. The first transformation from an agricultural to an industrial economy

1290-479: The existence and strength of trends. Dollar cost averaging (DCA), also known in the UK as pound-cost averaging, is the process of consistently investing a certain amount of money across regular increments of time, and the method can be used in conjunction with value investing, growth investing, momentum investing, or other strategies. For example, an investor who practices dollar-cost averaging could choose to invest $ 200

1333-423: The future. To identify such stocks , growth investors often evaluate measures of current stock value as well as predictions of future financial performance. Growth investors seek profits through capital appreciation – the gains earned when a stock is sold at a higher price than what it was purchased for. The price-to-earnings (P/E) multiple is also used for this type of investment; growth stock are likely to have

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1376-555: The method in 1950 by introducing his mutual fund , the T. Rowe Price Growth Stock Fund. Price asserted that investors could reap high returns by "investing in companies that are well-managed in fertile fields." A new form of investing that seems to have caught the attention of investors is Venture Capital. Venture Capital is independently managed dedicated pools of capital that focus on equity or equity-linked investments in privately held, high growth companies. Momentum investors generally seek to buy stocks that are currently experiencing

1419-724: The most important criticisms of industrialisation is that it caused children to stay away from home for many hours and to use them as cheap workers in factories. Between the early 1960s and 1990s, the Four Asian Tigers underwent rapid industrialisation and maintained exceptionally high growth rates. As of 2018 the international development community ( World Bank , Organisation for Economic Co-operation and Development (OECD) , many United Nations departments, FAO WHO ILO and UNESCO , endorses development policies like water purification or primary education and co-operation amongst third world communities . Some members of

1462-449: The new town. The first stage of construction was over. During the second stage (1962–1965) more houses and shops were built. By 1966 there were 1,464 flats for the workers, and on 1 April 1966 the town was officially granted town status. Between 1966 and 1970 – in the 3rd stage of town construction – two primary schools , a secondary school and a community centre were built. The town was now inhabited by 10,000 people. On 22 April 1970 –

1505-555: The number of children per household. Furthermore, industrialisation contributed to increased cases of child labour and thereafter education systems. As the Industrial Revolution was a shift from the agrarian society, people migrated from villages in search of jobs to places where factories were established. This shifting of rural people led to urbanisation and an increase in the population of towns. The concentration of labour in factories has increased urbanisation and

1548-455: The place of work. By the end of the 20th century, East Asia had become one of the most recently industrialised regions of the world. There is considerable literature on the factors facilitating industrial modernisation and enterprise development. The Industrial Revolution was accompanied by significant changes in the social structure, the main change being a transition from farm work to factory-related activities. This has resulted in

1591-524: The principle that a consistently up-trending stock will continue to grow, while a consistently down-trending stock will continue to fall. Economists and financial analysts have not reached a consensus on the effectiveness of using the momentum investing strategy. Rather than evaluating a company's operational performance, momentum investors instead utilize trend lines, moving averages, and the Average Directional Index (ADX) to determine

1634-546: The process of the P/B ratio, the share price of a stock is divided by its net assets; any intangibles, such as goodwill, are not taken into account. It is a crucial factor of the price-to-book ratio, due to it indicating the actual payment for tangible assets and not the more difficult valuation of intangibles. Accordingly, the P/B could be considered a comparatively conservative metric. Growth investors seek investments they believe are likely to have higher earnings or greater value in

1677-471: The purchase of more shares when their price is lower, and less shares when the price is higher. However, dollar-cost averaging is also generally characterized by more brokerage fees, which could decrease an investor's overall returns. The term "dollar-cost averaging" is believed to have first been coined in 1949 by economist and author Benjamin Graham in his book, The Intelligent Investor . Graham asserted that investors that use DCA are "likely to end up with

1720-479: The return is also generally low. Similarly, high risk comes with a chance of high losses. Investors, particularly novices, are often advised to diversify their portfolio . Diversification has the statistical effect of reducing overall risk. In modern economies, traditional investments include: Alternative investments include: An investor may bear a risk of loss of some or all of their capital invested. Investment differs from arbitrage , in which profit

1763-656: The same: the village became a town in 1966 and was renamed twice, in 1970 and in 1991. The construction of the town began on 9 September 1955; among the first buildings was a thermal power station and some blocks of flats around it. In the next stage of construction the Tiszai Vegyi Kombinát (TVK, "Chemical Factory") was built. It is one of the major chemical complexes in Hungary and, according to their website, represents more than 20% of petrochemical capacities in Central Europe . The first production unit,

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1806-421: The savings account decreases, measured in the account holder's home currency. Even investing in tangible assets like property has its risk. And similar to most risks, property buyers can seek to mitigate any potential risk by taking out mortgage and by borrowing at a lower loan to security ratio. In contrast with savings, investments tend to carry more risk, in the form of both a wider variety of risk factors and

1849-579: The size of settlements, to serve and house the factory workers. Family structure changes with industrialisation. Sociologist Talcott Parsons noted that in pre-industrial societies there is an extended family structure spanning many generations who probably remained in the same location for generations. In industrialised societies the nuclear family , consisting of only parents and their growing children, predominates. Families and children reaching adulthood are more mobile and tend to relocate to where jobs exist. Extended family bonds become more tenuous. One of

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