The Dodd-Frank Act is a financial reform law meant to avert another economic catastrophe. The bill is named after the politicians who introduced it, Senator Chris Dodd and Congressman Barney Frank.Know More
The Dodd-Frank Act is also known as the Dodd-Frank Wall Street Reform Act, and it was signed into law in 2010 by President Barack Obama. The law also regulates the derivatives market, which was responsible for the economic downfall of 2008. Derivatives like credit default swaps fall under the jurisdiction of the Securities and Exchange Commission, and derivatives must be traded in public view for proper oversight.
One aspect of the bill is the creation of the Consumer Financial Protection Bureau, which monitors payday loans, credit cards, debit cards and credit reporting agencies. The bureau also oversees fees associated with such transactions as mortgages and loans.
Another agency is the Financial Stability Oversight Council, which regulates hedge funds and prevents a company from becoming so large that its downfall could affect the entire economy. If a company gets too large, the agency recommends that the Federal Reserve intervene and regulate the firm.
The bill also includes the Volcker Rule, which restricts banks from using their own monetary resources to gain profit through hedge funds. This is meant to protect the money of depositors, because banks use those funds to amass more profit on the market.Learn more about Investing
The price of a share of stock is not calculated so much as it is determined by the amount investors are willing to pay on any given day. According to About.com, the market opens each day with a clean slate. It is possible for stocks to sell for the same price as the day before, to sell for a fraction of their previous value, or to increase greatly in value.Full Answer >
The rise and fall of oil prices are partly determined by supply and demand, with prices increasing when production of crude oil falls and falling when production levels increase, according to Business Insider. When demand increases, such as in summer months, the price of oil usually increases.Full Answer >
To become a trader, earn a bachelor's or master's degree in a relevant field, apply for an internship at an investment bank, build business connections, and complete on-the-job training. Practice for a licensing exam, and obtain a license in trading, if necessary.Full Answer >
Crude oil futures are contracts related to various types of unrefined oil that are traded in global markets. Crude oil, the most traded commodity in the world, is bought and sold primarily on the New York Mercantile Exchange in the United States.Full Answer >