Ethics- Aspiration statements
- Work vs. family
- CEO must be role model of values; CEO who would put his own stamps on personal mail sent from the company.
- Environmental regulation/company stance issues
- TV/advertising/press ethical issues
Behavioral finance- Moods affect stock market (clouds, weather, lunar phases, festive occasions, degree of coldness)
- Cloudy days, cold days, DST transition and coming back to dark house all give negative results
- Weekend effect (markets down Monday; people upset coming in to work after weekend)
- People behave weird around full moon days (lunatic): negative effect across all international exchanges
- Reversal of large stock price decreases over next 3-4 days
- Sell in may and go away; Halloween indicator; November to May has stronger growth; huge discrepancy between winter and summer months returns; upward momentum starts in October (Winter bonuses; gone fishing/summer vacation/kids distracting)
- If a nation loses World Cup game, the day after the stock market goes down.
- Content analysis for investor mood; investor overreaction and rebound
- Zero predictive content in Cramer's recommendations; his role in society: validates people's opinions; people like to think their environment is predictable.
- Bad ticker symbol or name (.com in name increased market cap when was in fashion; if take out of name when out of fashion, market cap goes up); names matter (in efficient market, shouldn't matter).
- Wrong/right MCI/MCIC; wrong MCI moving with right MCI
- Socionomics: social mood determines social events (not other way around)
- Correlation between stock market and fashion (hemline indicator, music genres moving stock market up)
Doing deals- Joint venture deals
- Equal footing important
- Trust but verify
- Use milestones
- Non-competition clauses
- Negotiate buy-sell, default provisions up front
- Information rights
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