Million Dollar Homepage is close to achieving million-dollar goal

Friday, December 30, 2005

Alex Tew, a student in England, has almost reached his target of one million dollars on his website: Million Dollar Homepage. He came up with the idea after jotting down ideas before he went to bed on how to become a millionaire before he went to university. Then he came up with the million-dollar idea: selling pixels at USD $1 each on a web page. Alex currently believes he can make his goal by the end of 31st December, 2005.

Advertising companies especially appreciate the website, as they wish to “make Internet history” on the Million Dollar Homepage. In fact as of writing, he has already made USD $999,000. The student says advertisers get to keep their ads for a period of five years from purchase and he says he will use the money he has made to guarantee it. Alex has said he has already got numerous job offers from companies aiming to secure his money making talent.

Tew is undergoing a business management course at Nottingham and needed GBP £7000 a year to complete his studies. He is understandably overwhelmed by the success he has achieved: “It’s just nuts. I’m in a state of disbelief. It’s like Monopoly money but then I look at my bank account and there’s a lot of cash in it.” The British National Union of Students claim that 90% of students are in debt. However, what only worries him is how he’s going to spend his money. He has already spent some of his money on a car for himself, as he thinks of what to do with his new fortune.

His website’s method is simple; his website is made up of one page divided into 10,000 boxes, each 100 pixels in size. Companies can buy one or more boxes for USD $100 each and cover it with a logo, which, when clicked on, transports web users to the customers’ own site.The figures add up with the site now carrying over 240 advertisements and has 30,000 hits a day. Even the actor Jack Black, star of “School of Rock” and “Shallow Hal“, is using the site to advertise his band Tenacious D.

Retrieved from “https://en.wikinews.org/w/index.php?title=Million_Dollar_Homepage_is_close_to_achieving_million-dollar_goal&oldid=438622”

Canada’s Etobicoke Centre (Ward 3) city council candidates speak

This exclusive interview features first-hand journalism by a Wikinews reporter. See the collaboration page for more details.

Monday, October 30, 2006

On November 13, Torontoians will be heading to the polls to vote for their ward’s councillor and for mayor. Among Toronto’s ridings is Etobicoke Centre (Ward 3). One candidate responded to Wikinews’ requests for an interview. This ward’s candidates include Doug Holyday (incumbent), Peter Kudryk, Lillian Lança, and Ross Vaughan.

For more information on the election, read Toronto municipal election, 2006.

Retrieved from “https://en.wikinews.org/w/index.php?title=Canada%27s_Etobicoke_Centre_(Ward_3)_city_council_candidates_speak&oldid=2584581”

Baby dies after being found abandoned behind shop in Gwent, Wales

Saturday, March 20, 2010

According to an announcement from Gwent Police, a baby boy has died after being found abandoned behind a convenience store in Gwent, Wales. The boy, who has not yet been identified, was found behind a Spar convenience store in the town of Cwmcarn at 1815 GMT on Tuesday. The baby was found to be wrapped in a towel which was in a plastic shopping bag. Bystanders who were walking past the scene mistakenly believed that the bag had been unintentionally left there by a person who had visited the gym that is located next to the store.

A 14-year-old boy, who is the son of the man who owns the convenience store, then examinied the bag and discovered the baby. He made a phone call to the emergency services, however, when the baby was taken to Royal Gwent Hospital, it was pronounced dead on arrival. The baby was younger than one day old at the time of his death. A post-mortem examination proved to be indeterminate. Gwent Police have now launched an investigation to try and determine the identity of the baby’s mother.

Gursewak Singh, the father of the person who discovered the baby and the owner of the shop, explained: “We asked friends and colleagues what the bag was doing there, but it didn’t belong to anyone. A boy who works with us said it was just a towel in there and he didn’t open it. In the evening I went out to it and opened it, only saw a towel on top and didn’t look thoroughly. I just thought it was clothes underneath and didn’t want to root through them. I picked it up and hanged it on the gatepost so someone walking by might see it and recognise it as theirs. At about six o’clock there was a power cut and my 14-year-old son went out and picked up the bag and opened it and saw a little head in there. He called his uncle and said: ‘It’s not clothes, come and look’. They came over and saw the baby in there.” Singh commented that this incident “was shocking. We were all devastated. I wish we had checked earlier. If we had gone through the bag we could have made a difference. I’m worried what sort of condition the person who left the bag is in. We are so concerned about her. Other people saw the bag, but nobody thought about it. There could be a baby still alive. I wish we had checked straight away.”

Gwent Police member Superintendent John Burley stated about this case: “We are extremely concerned about the health and wellbeing of the mother of the baby and are appealing for her to come forward to receive any medical treatment she may require. This is a tragic incident which will sadden the local community and our priority at the moment is finding the mother of the baby. I would appeal to anyone who may have been in the vicinity of the Spar store on Thursday morning or afternoon who may be able to offer any information to assist our inquiry.”

Retrieved from “https://en.wikinews.org/w/index.php?title=Baby_dies_after_being_found_abandoned_behind_shop_in_Gwent,_Wales&oldid=1566240”

The Green Party of Canada to elect new leader

Saturday, August 26, 2006

The Green Party of Canada will elect a new leader today. The new leader will replace Jim Harris, who stepped down after holding the position since 2003.

The candidates are:

May and Chernushenko, have emerged as frontrunners of the leadership race.

“We draw pretty much equally from across the entire political spectrum,” Jim Harris told CBC News. “If you were a Progressive Conservative, as I was, where do you go? The Green party supports Kyoto. We were opposed to the war in Iraq and yet at the same time we’re fiscally responsible. This is something that’s attractive to people.”

The Green party didn’t get any member elected in the January 23 general election, but the party did get about 4.5 per cent of the vote, enough to secure $1 million a year in federal funding.Chernushenko, an environmental consultant in Ottawa, got the most votes of any Green candidate.

Most Green party members have already cast their ballots by mail for the next leader.

May says that “her national profile and background as an adviser to the environment minister during Conservative Brian Mulroney‘s government are important for getting more Canadians interested in the party”. May referred to tackling climate change, urging electoral reform and ending Canada’s military mission in Afghanistan.

“I don’t really understand yet what she stands for. It’s a lot of rhetoric,” Globe and Mail columnist Jane Taber told CTV Newsnet.

“We will elect MPs by continuing to gain the trust and confidence of Canadians, and by reaching out to Canadians outside of our traditional base of support,” said Chernushenko. Chernushenko said the party should parachute star candidates into key ridings.

“Chernushenko sees a need for government regulation but wants to involve the private sector a bit more, and that’s consistent with Jim Harris’s ideas,” said Jonathan Malloy, political science professor at Ottawa’s Carleton University.

Jim Fannon, who spoke casually to the audience about his talents as a mediator, capable of bridging political gaps between the Greens, Liberals, Conservatives and New Democrats. Chernushenko says though he may not always be able to “wow” a crowd, he remains a strong communicator and team player. “I can’t do the rah-rah motivational thing, like Jim (Harris) did an incredible job at, but I can go very deep on complex issues and explain them in plain language,” he said Friday.

Josh Matlow of Earth Roots said: “Elizabeth May is someone I would want to lock myself to a tree with; David Chernushenko is someone I would want to discuss policy with; and Jim Fannon is someone I would go for a beer with”.

Political analysts consider May, a veteran envirnomental activist but also a newcomer to the party, to be the strong favourite to win the race against party stalwart Chernushenko.

Retrieved from “https://en.wikinews.org/w/index.php?title=The_Green_Party_of_Canada_to_elect_new_leader&oldid=4676570”

Wikinews interviews Sue Gardner on Wikipedia blackout

Wednesday, January 18, 2012

This article mentions the Wikimedia Foundation, one of its projects, or people related to it. Wikinews is a project of the Wikimedia Foundation.

Today, the English version of Wikipedia is taking part in a 24-hour ‘blackout’ to protest two proposed U.S. anti-piracy laws, the Stop Online Piracy Act and the PROTECT IP Act. The protest mirrors similar actions from other websites including Reddit and Boing Boing. The White House stated on Saturday that they “will not support legislation that reduces freedom of expression, increases cybersecurity risk, or undermines the dynamic, innovative global internet”.

In the midst of the Wikipedia blackout, executive director of the Wikimedia Foundation Sue Gardner answered some questions posed by Wikinews’ Tom Morris about the effectiveness of, and background to, the blackout.

((Tom Morris)) Do you think the blackout is going to actually be effective?

((Sue Gardner)) Yes. In my opinion, the blackout has two main goals—to raise awareness about the dangers of SOPA and PIPA, and to encourage readers to contact their elected representatives and give their views. The first has already been accomplished: there are already more than 4,000 stories in Google News about the blackout, and it was a trending topic on Twitter almost immediately. So we know we’ve been effective in raising awareness. What remains to be seen how many people will contact their elected officials.

((TM)) What do you say to people who have decided to leave the editing community as a result of the blackout?

((Gardner)) I hope nobody stops editing Wikipedia because of the blackout. I watched the community decision-making process unfold on the English Wikipedia, and I thought it was a good one. People first started talking about SOPA more than a month ago. Jimmy started the straw poll in mid-December. Over 1,800 English Wikipedians from many different countries participated in the discussion over the last three days. As the admins who closed it noted, this is by far the largest-ever number of participants in a community discussion on English Wikipedia, and the overwhelming majority of them supported action. So I would hope that anybody who opposes the blackout would also agree that the decision-making process was a good one, and would therefore be okay to accept it, however reluctantly.

((TM)) How much technical planning went into the blackout before the community consensus was decided on Monday night?

((Gardner)) Last Thursday Geoff Brigham [Ed: Wikimedia’s legal counsel] asked engineering to do an internal assessment of the technical implementation requirements, because the community discussions at that point were suggesting there would likely be some kind of action. Engineering did an initial assessment based on e.g. the Italian blackout, implications for search engines, etc., and then a lot of work happened over the weekend. The bulk of initial development and testing happened on a sprint on Martin Luther King Day, a public holiday in the United States, and the final launch development and testing sprint happened on Tuesday.

((TM)) Does the fact that this is affecting only English Wikipedia and not the sister projects and other language projects concern the Foundation?

((Gardner)) No. My understanding is that the English Wikipedia is the only project and language-version enacting a blackout, but that several other projects and language versions are putting up supportive banners, with the Italian Wkipedians doing a clickthrough informational interstitial. The German Wikipedia decided to put up banners even before consensus was reached on the English Wikipedia, and the Arabic Wikipedia, Italian Wikipedia and Commons later made the same decision. (There may be others, that I don’t know about.) I think that’s fine: each project and each language has different circumstances that argue for different types of action, or for no action. There is no one right answer that fits everybody.

((TM)) Some have said that the lack of participation by opponents of SOPA in the commercial sector (sites of the size of Twitter, Facebook, Google etc.) is going to hamper the effectiveness of the blackout – is this a concern?

((Gardner)) No. I don’t think anybody ever expected the big commercial sites to black out: most aren’t in a position to participate in something like this even if they wanted to. For example, they might have shareholders to answer to, participation might cost them significant revenue, or it could break contractual agreements (such as a commitment to maintain a certain level of uptime, or some other service delivery). Most sites are constrained by various commercial considerations: that makes Wikipedia’s participation particularly powerful and important.

((TM)) Given both the Italian shutdown and the SOPA blackout, is the Foundation going to come up with a policy or set of conditions which limit when these kind of things happen? There are plenty in the community who support the SOPA actions but are concerned that this will set a bad precedent.

((Gardner)) Yeah, I empathize with those people and to a certain extent I share that concern. The Wikimedia movement does not have a lot of experience with advocacy, and probably mistakes will get made. At this time the Wikimedia Foundation doesn’t have any plans to develop policy governing protests or advocacy work. But, I think it probably does make sense for the Foundation to create venues for these discussions so people can share thinking and expertise. So for example, we may create a mailing list dedicated to advocacy/lobbying. And there is some good thinking starting to happen [on the project-wide protests page on Meta].

Retrieved from “https://en.wikinews.org/w/index.php?title=Wikinews_interviews_Sue_Gardner_on_Wikipedia_blackout&oldid=4567761”

Get Storage Container Rental Service For One Time Use Also}

Get Storage Container Rental Service For One-Time Use Also

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Now, storage container rental is available online at the most reasonable cost. Thus, it becomes very easy and much more affordable for those who need small or large storage containers for only one-time use. If you are moving your property between locations or if you need to store some inventory for a few days then storage container rental is a very valuable product.

Some leading storage container providers can deliver small and large storage containers to your work place whenever you want and can pick them up when their use is over. You can also extend your storage container rental if you require them for more time by just making a phone call.

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Bomb hits northwestern Pakistan; at least 30 killed

Wednesday, November 11, 2009

A suicide car bomb attack in northwestern Pakistan has killed at least 30 people, including some children.

Investigators say the bomb exploded Tuesday on a busy street near a market in the city of Charsadda, 40 kilometers north of Peshawar. The blast wounded dozens of people and destroyed several buildings.

“The death toll has gone up to 32 and more than 100 people have been wounded in this suicide attack,” said Bashir Bilour, the Senior Minister of North West Frontier Province.

Hazrat Ali, a shopkeeper, was a witness to the event. He recounted his experiences to the Agence France-Presse news agency. “I was buying something before closing my shop. A car was parked on the other side of the road and all of a sudden there was a huge blast. There was smoke and darkness everywhere. I passed out.” Ali sustained shrapnel injuries to his forehead and torso.

This was the third bombing in the area in three days. On Monday, a suicide bomber in a rickshaw blew himself up at a checkpoint in Peshawar, killing three people. A suicide bomber killed thirteen people in a crowded market outside the city on Sunday.

Retrieved from “https://en.wikinews.org/w/index.php?title=Bomb_hits_northwestern_Pakistan;_at_least_30_killed&oldid=4460694”

Australian government to censor 3G mobile content

Thursday, June 15, 2006

Helen Coonan, Australia’s communications minister announced on Wednesday that the Howard government planned on introducing legislation into parliament restricting access to inappropriate or harmful material on so-called “emerging content services”. The government considers 3G mobile communications and subscription-based Internet portals to be emerging content services.

Senator Coonan said in a statement that the government was supportive of new technology, but felt that the technology requires safeguards to ensure that children are not exposed to inappropriate content.

“The Government supports the development of innovative new communications services which provide access to the Internet, email, games, instant messaging, chat rooms, video clips and television programs,” she said.

“However, these new content services may also potentially carry offensive or harmful content and we need to ensure that appropriate safeguards are in place to protect children from exposure to content that might be harmful.”

Senator Coonan said the government intends to prohibit material rated X18+ and restrict access to other services based upon the subscriber’s age and content classification. Speaking of the proposed legislation, the minister said “It will extend the current safeguards that apply to content delivered over the Internet or television to be applied to content delivered over convergent devices,”

“This will include prohibition of content rated X18+ and above, requirements for consumer advice and age-restricting access to content suited only to adults.”

The announcement comes as the government released a report into the effectiveness of the current regulatory framework and how it applies to new delivery methods.

The report, received by the government in April, found that the differences between television, print, radio and Internet media would be blurred by devices such as 3G mobile phones and wireless Internet access. It suggested that the government regulate based on the amount of control service providers have over content instead of via the method used to access it.

It also found that much of the content available via emerging content services was based upon that of other mediums, where censorship already takes place.

The report did however express concern about mobile chat services, claiming they could be used by pedophiles to target children. The report found it would be more difficult for parents to supervise their children’s mobile chat behaviour as they would have access to the service from anywhere. The report said this could be countered by the fact that mobile users are easier to identify than users on the Internet, making pedophiles less likely to use the service.

The report also suggested that Internet access via mobile telephones be limited to customers over the age of 18, unless minors have permission from their parent or guardian. Under current Australian law, a minor is unable to sign up for an account with an Internet service provider, but is able to access WAP based Internet services without restriction.

Retrieved from “https://en.wikinews.org/w/index.php?title=Australian_government_to_censor_3G_mobile_content&oldid=1408343”

Fx Hedging Strategies

FX Hedging Strategies

Foreign exchange currency is an exciting market with ample opportunities and grandeur chances of accumulating wealth in a limited time. There are many calculations, millions of traders, businesses, and countries involved. Thus, forex is a never-ending cycle which produces the transaction of more than USD 6.6 trillion a day. Interestingly, the opportunities are greater here, and so are the chances of making money. Therefore, FX hedging strategies are considerably outstanding.

Currency hedging mitigates the risk prevailing on currency trading in the international market regarding the returns.

Notably, hedging gives a cushioning of not losing any money even when something goes wrong. So, if you are willing to go on an escapade of experimentation, the forex market is ahead of many assets and supportive in that direction.

As a trader, one feels safe. Moreover, if you choose a broker like ETFinance and ROinvesting, the benefits are incredible.

Here’re some of the best FX hedging strategies for traders.

What is the need for hedging strategies in the forex market?

The market of forex is unpredictable and volatile. It is hard to guess which way the tide will turn. In that case, a trader is always living in the peril of losing funds. The market oscillations are more extensive sometimes, and instead of earning, a market player ends up losing funds. Even sophisticated and experienced investors get affected while trading currency pairs or currencies like the US dollar.

Interestingly, if you’ve traveled abroad, you must have observed that sometimes goods or products you purchase seem inexpensive. That’s due to the exchange rate. But, also, it works conversely as well. It is because of the fluctuations and unforeseen forces forcing instability in the market. Such types of differences and changes can cause distinctions in investment and transactions.

Thus, as a trader, you need to be wary before buying, selling, or purchasing any goods because things change.

Rates of currencies move in waves.From trending on the wayto the other, you can clearly see a wave and evaluate it through a graph. One can observe a significant impact on wealth, especially when you are holding a pair or currency for the short term.

Why is hedging used in forex?

The reason for hedging in forex is simple. It helps in protecting the position of a trader’s currency pair against the averse turns. This is short-term protection from any news or information that may trigger uncertainty in the market and people may lose their money. When we talk about hedging, two other similar strategies are used in a similar situation. You can apply hedge in the opposite direction or buy into options.

Moreover, it enables and helps investors to aim local equity returns in the international forex trades. It is quite simple and cost-effective that you may even imagine.

These ways can pave a path of hedging and benefits.

Strategy number one for hedging in forex

If you are willing to protect your position in the forex market partially through a hedge from an undesirable circumstance, then you can use forex options in the currency pair. However, this planning is addressed as an imperfect hedge because it only casts away some part of the risk and protects half of the partial position related to the trade. However, one must not see it as a downside but a method to apply protection shields.

For creating a situation for an imperfect hedge, a market player has to purchase the put option. It will protect him/her from the downside perils. It can happen while the trader has long currency pair. In the inverse condition, when the bets are on the short currency position, the trader needs to buy call options for reducing the risk possibility.

PS:When a buyer applies a put option, it gives him/her the right sans obligation to sell or short a currency pair at a strike price or prior to the expiry date to the options seller in lieu of the payment in the form of a premium upfront.

On the other side, call options offer a buyer the right but not the obligation to purchase a currency pair at the date of expiry or strike price in exchange for an upfront premium as payment.

Strategy two for hedging in forex

There’s no better thing than fully protecting your positions. It will guard you against any threats that may disrupt the way you trade. Every undesirable situation will be thrown out. It is profitable for traders who trade extensively in thecurrency marketand require a shield from relentless ups and downs.

Here, one has to hold both short and long positions at the same time on the same forex pair. This is known as a perfect hedge. There’s no room for complacency, and profits are fully accompanied in it. So, it is advantageous to traders.

However, there may be some contradiction in overselling a currency pair that you are willing to hold for a longer time. In that condition, two positions will offset each other. Interestingly, it is quite common than it may appear. Such a type of hedge arises when a trader holds short and long positions for long-term trade and does not liquidate them.

There’s a creation contrary trader for the short-term hedge. It happens in front of important information or a piece of news.

Dynamic hedging in forex

The process of dynamic hedging in favor of traders irrespective of their trading experience. However, they require the proper application of strategies. It can be determined as the best thing for a portfolio. Depending on the quantitative indicators and other measures, a trader lands in himself/herself in the best situation. This provides investors with an opportunity to capitalize on currency pair.

Conclusion:

If you are struggling to trade in the forex market, which is full of opportunities, then using brokers like 101investing, ETFinance, ROinvesting, ABinvesting, and others. Hedging gives a chance to retrieve the lost money when the price starts to fall. Traders include several strategies and ways like options, futures trading, etc. of trading in the market successfully applying hedge.

FX Hedging Strategies

Foreign exchange currency is an exciting market with ample opportunities and grandeur chances of accumulating wealth in a limited time. There are many calculations, millions of traders, businesses, and countries involved. Thus, forex is a never-ending cycle which produces the transaction of more than USD 6.6 trillion a day. Interestingly, the opportunities are greater here, and so are the chances of making money. Therefore, FX hedging strategies are considerably outstanding.

Currency hedging mitigates the risk prevailing on currency trading in the international market regarding the returns.

Notably, hedging gives a cushioning of not losing any money even when something goes wrong. So, if you are willing to go on an escapade of experimentation, the forex market is ahead of many assets and supportive in that direction.

As a trader, one feels safe. Moreover, if you choose a broker like ETFinance and ROinvesting, the benefits are incredible.

Here’re some of the best FX hedging strategies for traders.

What is the need for hedging strategies in the forex market?

The market of forex is unpredictable and volatile. It is hard to guess which way the tide will turn. In that case, a trader is always living in the peril of losing funds. The market oscillations are more extensive sometimes, and instead of earning, a market player ends up losing funds. Even sophisticated and experienced investors get affected while trading currency pairs or currencies like the US dollar.

Interestingly, if you’ve traveled abroad, you must have observed that sometimes goods or products you purchase seem inexpensive. That’s due to the exchange rate. But, also, it works conversely as well. It is because of the fluctuations and unforeseen forces forcing instability in the market. Such types of differences and changes can cause distinctions in investment and transactions.

Thus, as a trader, you need to be wary before buying, selling, or purchasing any goods because things change.

Rates of currencies move in waves.From trending on the wayto the other, you can clearly see a wave and evaluate it through a graph. One can observe a significant impact on wealth, especially when you are holding a pair or currency for the short term.

Why is hedging used in forex?

The reason for hedging in forex is simple. It helps in protecting the position of a trader’s currency pair against the averse turns. This is short-term protection from any news or information that may trigger uncertainty in the market and people may lose their money. When we talk about hedging, two other similar strategies are used in a similar situation. You can apply hedge in the opposite direction or buy into options.

Moreover, it enables and helps investors to aim local equity returns in the international forex trades. It is quite simple and cost-effective that you may even imagine.

These ways can pave a path of hedging and benefits.

Strategy number one for hedging in forex

If you are willing to protect your position in the forex market partially through a hedge from an undesirable circumstance, then you can use forex options in the currency pair. However, this planning is addressed as an imperfect hedge because it only casts away some part of the risk and protects half of the partial position related to the trade. However, one must not see it as a downside but a method to apply protection shields.

For creating a situation for an imperfect hedge, a market player has to purchase the put option. It will protect him/her from the downside perils. It can happen while the trader has long currency pair. In the inverse condition, when the bets are on the short currency position, the trader needs to buy call options for reducing the risk possibility.

PS:When a buyer applies a put option, it gives him/her the right sans obligation to sell or short a currency pair at a strike price or prior to the expiry date to the options seller in lieu of the payment in the form of a premium upfront.

On the other side, call options offer a buyer the right but not the obligation to purchase a currency pair at the date of expiry or strike price in exchange for an upfront premium as payment.

Strategy two for hedging in forex

There’s no better thing than fully protecting your positions. It will guard you against any threats that may disrupt the way you trade. Every undesirable situation will be thrown out. It is profitable for traders who trade extensively in thecurrency marketand require a shield from relentless ups and downs.

Here, one has to hold both short and long positions at the same time on the same forex pair. This is known as a perfect hedge. There’s no room for complacency, and profits are fully accompanied in it. So, it is advantageous to traders.

However, there may be some contradiction in overselling a currency pair that you are willing to hold for a longer time. In that condition, two positions will offset each other. Interestingly, it is quite common than it may appear. Such a type of hedge arises when a trader holds short and long positions for long-term trade and does not liquidate them.

There’s a creation contrary trader for the short-term hedge. It happens in front of important information or a piece of news.

Dynamic hedging in forex

The process of dynamic hedging in favor of traders irrespective of their trading experience. However, they require the proper application of strategies. It can be determined as the best thing for a portfolio. Depending on the quantitative indicators and other measures, a trader lands in himself/herself in the best situation. This provides investors with an opportunity to capitalize on currency pair.

Conclusion:

If you are struggling to trade in the forex market, which is full of opportunities, then using brokers like 101investing, ETFinance, ROinvesting, ABinvesting, and others. Hedging gives a chance to retrieve the lost money when the price starts to fall. Traders include several strategies and ways like options, futures trading, etc. of trading in the market successfully applying hedge.

Market maker Bernard L. Madoff arrested in $50B ‘giant Ponzi scheme’

 Correction — January 10, 2009 This article incorrectly states that Mr Madoff attended Hofstra University Law School. His education was actually with Hofstra College, which he graduated from in 1960. 

Friday, December 12, 2008

Top broker and Wall Street adviser Bernard L. Madoff, aged 70, was arrested and charged by the FBI on Thursday with a single count of securities fraud, also known as stock fraud and investment fraud. He allegedly told senior employees of his firm on Wednesday that his $50 billion business “is all just one big lie” and that it was “basically, a giant Ponzi scheme (since at least 2005).” Mr. Madoff faces up to 20 years imprisonment and a fine of up to $5 million. FBI agent Theodore Cacioppi said Mr. Madoff’s investment advisory business had “deceived investors by operating a securities business in which he traded and lost investor money, and then paid certain investors purported returns on investment with the principal received from other, different investors, which resulted in investors’ losses of approximately $50 billion dollars.”

The former chairman of the Nasdaq Stock Market is also the founder and primary owner of Bernard L. Madoff Investment Securities LLC, the closely-held market-making firm he launched in 1960. The firm is one of the top market maker firms on Wall Street. He founded his family firm with an initial investment of $5,000, after attending Hofstra University Law School. He saved the money earned from a job lifeguarding at Rockaway Beach in Queens and a part time job installing underground sprinkler systems.

A force in Wall Street trading for nearly 50 years, he has been active in the National Association of Securities Dealers (NASD), a self-regulatory organization for the U.S. securities industry. His firm was one of the five most active firms in the development of the NASDAQ, having been known for “paying for order flow,” in other word paying a broker to execute a customer’s order through Madoff. He argued that the payment to the broker did not alter the price that the customer received. He ran the investment advisory as a secretive business, however.

Dan Horwitz, counsel of Mr. Madoff, in an interview, said that “he is a longstanding leader in the financial-services industry with an unblemished record; he is a person of integrity; he intends to fight to get through this unfortunate event.” Mr. Madoff was released on his own recognizance on the same day of his arrest, after his 2 sons turned him in, and posting $10 million bail secured by his Manhattan apartment. Without entering any plea, the Court set the preliminary hearing for January 12.

Madoff’s hedge fund scheme may rank among the biggest fraud in history. When former energy trading giant Enron filed for bankruptcy in 2001, one of the largest at the time, it had $63.4 billion in assets. The scheme would dwarf past Ponzis, and it would further be nearly five times the telecommunication company WorldCom fraud and bankruptcy proceedings in 2002.

The Securities and Exchange Commission filed a separate civil suit on Thursday against Bernard L. Madoff Investment Securities and its eponymous founder Mr. Madoff. It was docketed as “U.S. v. Madoff,” 08-MAG-02735, by the U.S. District Court for the Southern District of New York (Manhattan). SEC, New York associate director of enforcement, Andrew M. Calamari, asked the judge to issue seizure orders on the firm and its assets, and appoint a receiver. The SEC pleads, among others, that “it was an ongoing $50 billion swindle; our complaint alleges a stunning fraud that appears to be of epic proportions.” It further accused the defendant of “paying returns to certain investors out of the principal received from other, different investors” for years. Madoff’s hedge fund business had previously claimed to have served between 11 and 25 clients and had $17.1 billion in assets under management. But virtually all of the assets were missing.

United States District Court for the Southern District of New York Louis L. Stanton on Thursday appointed Lee Richards, a Manhattan lawyer, as the firm’s receiver. A hearing is set for Friday, for a ruling on the SEC’s petition to grant plenary powers to the receiver over the entire firm, and an absolute asset sequestration.

Doug Kass, president of hedge fund Seabreeze Partners Management said that “this is a major blow to confidence that is already shattered — anyone on the fence will probably try to take their money out.”

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