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5 Things You Must Do Before Buying A Used Car

2016-09-04T16:05:00.000-04:00

We all want to get a great deal on a used car, but there are usually problems with used cars such as a history of accidents or excessive mileage. However, if you follow the 5 tips below, you'll likely end up in a much better decision when you're about to hand over your hard-earned cash.

1) Check the CarFax or AutoCheck

CarFax and AutoCheck both allow you to check important details about a vehicle, including any accidents the vehicle has been in as well as service records. Many dealerships include a free CarFax report for used cars. Ask for this report prior to purchasing the vehicle. What you find may surprise you. Additionally, CarFax reports are now being made available online, which makes it much easier to research vehicles prior to purchase.

CarFax and AutoCheck allow you to check a vehicle's history, including accidents.

Video: YouTube (AutoTrader)

2) Buy Certified Pre-Owned (CPO)

Buying a used car can lead to a lot of worrying. Worrying about maintenance, servicing, and even mechanical failure. You can get rid of all these extraneous factors and simply enjoy your new car if you go the Certified Pre-Owned route. Certified Pre-Owned (CPO) vehicles usually include 2, 3, and even 5 years of maintenance and service coverage, which means you can rest easy when it comes to maintenance costs for your vehicle.

Best of all, most car manufacturers have strict standards for which cars make it to their CPO inventory. There are usually a myriad of mechanical, cosmetic, and electronic tests conducted on potential CPO vehicles to ensure they are in top condition. Of course, there is a premium to purchasing a CPO vehicle. However, when taking into consideration the money you'll be saving on maintenance (and the invaluable stress saved from worrying about maintenance), it is usually worth the premium.

3) Expand Your Filters
Most online car search engines (such as AutoTrader) have the ability to filter multiple parameters when searching for vehicles. By expanding your filters to include just 1-2 more years, you can score a great deal on a model that's just a few years older. It's not uncommon for these older models to also have fewer miles, so it ends up being a great value.

Additionally, filters such as "Instant Cash Offer Participating Dealers" allows you to find dealerships that accept instant cash offers that can be generated online through services such as Kelley Blue Book.

Websites like AutoTrader allow you to set search alerts that meet specific criteria.

Video: YouTube (AutoTrader)

4) Create a Search Alert

I can't stress this one enough. By setting a search alert for incoming used inventory, you can basically have used cars "sent" to your inbox. Search alerts match preset parameters (i.e., BMW 3 Series from the years 2010-2016, with 6 cylinders, in blue), taking the guesswork out of what cars set off an alert. By setting a search alert and waiting a few weeks, you will be surprised to find new deals earlier than others searching for the same vehicle. And as we all know, the early bird gets the worm.

Services like TrueCar allow you to check the value of your used vehicle.

Video: YouTube (TrueCar)

5) Check the Value (assume +8% on the sticker price)

This one is seemingly a no-brainer, but you'd be surprised to know that most people buying a used car do not have a definitive understanding of the vehicle's value. Dealerships will often advertise a low sticker price, only to switch and provide several reasons for why they can't meet you at that price. This is the classic "bait and switch" tactic used by many dealers.

To avoid this, there are several things you can do. First, research the vehicle's value by comparing across several websites such as Kelley Blue Book, TrueCar (which now covers used cars), as well as Edmunds. Also, consider having the car appraised.

Finally, assume a +8% addition on top of the sticker price. This will provide a reasonable cost of the vehicle assuming taxes, fees, and other miscellaneous costs. So, for example a car costing $15,995 can turn out to be $17,274 at the sale. Is that extra amount worth it? This can change the way you look at the vehicle in question.

By combining the 5 tips above, you can ensure that you're in a great position when it comes to purchasing your used vehicle. It most certainly will make you more informed, and knowledge is power. Good luck!

Samsung Note 7 Recall - Why Smartphone Wars are Leading to Safety Issues

2016-09-04T00:04:00.000-04:00

Since the Samsung Galaxy Note 7 released in August 2016, it has been touted as one of the best and most capable smartphones to have ever been released.

Except now it has a pretty bad problem. It explodes.

The Note 7 has a battery-exploding issue affecting 0.1% of phones.
Image: KKJ.CN

Well, not the phone exactly, but the battery within the phone. And while this affects only 0.1% of phones, Samsung made the wise decision to issue a global recall due to safety concerns.

This led many to ask: why not keep the battery removable, so that "fixed" batteries could be mailed out to customers worldwide? Indeed, this solution would theoretically cheaper and more efficient.

The Note 7 does not have a removable battery.
Image: AndroidAuthority

However, I argue that the problem is due to another issue entirely: the smartphone wars. Due to deadlines, cutthroat competition, and ultimately share prices―companies have been focusing on making phones thinner, faster, and lighter. This also means reaching strict deadlines every year.

This led Samsung to integrate the battery within the Note 7 entirely, making the option of shipping out "corrected" batteries impossible. Another daunting question: who knows what safety processes were expedited to get the phone out ahead of the iPhone 7?

Now the company has to deal with both the expense of the recall, and the tarnished brand of both the parent company and the phone.

SpaceX Rocket Carrying Facebook Satellite Explodes

2016-09-03T23:35:00.000-04:00

On September 2, 2016, a SpaceX rocket carrying a Facebook satellite exploded during fueling. The satellite it was carrying was intended to be used for distributing internet access to Africa as well as Europe and the Middle East.

Image: YouTube/USLaunchReport

What does this mean for the future of SpaceX? The company has been making strides to increase their space capabilities, and confidently churning ahead despite several past incidents.

Image: Michael Seeley (flickr)

Earlier in 2015, SpaceX's Falcon-9 Dragon CRS-7 exploded. The company has also been attempting to perfect their reusable rockets, where they've reached several roadblocks (see below for an attempted relanding which failed):

Video: YouTube

The recent crash caused Elon Musk, CEO of both Tesla and SolarCity, to lose $390M of his personal fortune. Mark Zuckerberg also had something to say regarding the incident: 'As I'm here in Africa, I'm deeply disappointed to hear that SpaceX's launch failure destroyed our satellite that would have provided connectivity to so many entrepreneurs and everyone else across the continent,' Zuckerberg wrote.

Despite all of the hurdles, many still believe SpaceX to be a company that is pioneering the future of space travel and exploration. Below is a video of a successful rocket landing:

Video: YouTube

HTC One M8 Review (from a Samsung Galaxy S4 user)

2014-04-06T18:41:00.000-04:00

The HTC One M8 was recently released on March 25, 2014. The HTC One M8 is continuing where the HTC One left off as HTC's flagship device for 2014. Below is a quick review on the HTC One M8 with my impressions. Several pictures of the device (and pictures captured from the camera) are below. Enjoy!

Introduction

I will skip most of the detailed technical specifications and list what matters to most people:

Processor: Qualcomm Snapdragon 801

Display: 5.0" 1080p, "Super LCD 3" with RGB matrix (441 ppi) - Corning Gorilla Glass 3

Camera: 4.0 MP, f/2.0, Dual-LED flash, 28 mm lens, 2.0 MP depth of field sensor

Memory: 2 GB LPDDR3 RAM

Build Quality and Performance

Coming from a Samsung Galaxy S4, the premium unibody aluminum frame and brushed metal backing is a welcome upgrade. HTC does not skimp when it comes to materials, and the HTC One M8 certainly feels like a premium product in my hands compared to the Galaxy S4. Granted, it is prone to slipping because of the ultra-smooth aluminum finish, but I am very happy with the build quality.

The HTC One M8 has a more pronounced curve throughout the phone as compared to the previous HTC One. Additionally, the back of the phone has been streamlined and looks cleaner than the previous HTC One in my opinion.

The phone is utilizing the fastest Qualcomm Snapdragon processor as of April 2014, the Snapdragon 801. Needless to say, it does not slow down during any task--which is expected from a flagship device like the HTC One M8. Previously, my Galaxy S4 did slow down when launching and exiting applications--and although it was a very slight slowdown (1 second or so), it was noticeable. I am happy to say that every application opens with no slowdown on the HTC One M8.

I think a large part of the speed differential is not only the processor but the User Interface. HTC's Sense 6.0 is clean and lean, and definitely faster than TouchWiz (Samsung's UI). I tried out my brother's iPhone 5S and the HTC One M8 kept pace and sometimes outperformed in opening and exiting applications. The time differences are in the milliseconds so it is difficult to judge which phone is faster from a practical standpoint.

There will certainly be benchmark reports coming out that show phone performance speeds and top contenders. But from a practical standpoint, nearly all flagship devices today have indistinguishable speeds when performing everyday tasks (e-mail, music, web browsing).

Key Features

The HTC One M8 comes with the latest version of Android as of April 2014 (4.4 - KitKat), so all of the features included in Android 4.4 KitKat come with the phone. Apart from KitKat, the biggest key feature that I saw in the HTC One M8 is the dual camera and "UFocus" feature. This feature allows the user to change depth/focus after taking a shot. The result is quite staggering, many photos look as if they were taken by a DSLR. Here is a quick example of a picture I took of a lock:

Original / UFocus on Foreground (Lock)

Original / UFocus on Background

Another great feature of the HTC One M8 is Launch Gestures. Launch Gestures allow you to simply double tap on your phone to turn it on, or swipe in multiple different directions to do different things (enter Voice Commands by swiping down, Sense Feed by swiping left, etc.)

The M8 also contains a plethora of filters and editing capabilities, as do most other phones. I found the included filters to be of rather good quality and not as gimmicky as most other phone filters.

HTC One M8 Example Pictures

Original (Left) / "Satura" Filter (Right)

Original (Left) / UFocus on Foreground/Wallet (Right)

There are many other features of the phone, but I thought these two features stood out the most to me.

Impressions

I was ultimately very impressed by the HTC One M8. Everything from the build quality, performance, and unique features of the phone made me enjoy the phone from the start. I will definitely be using my phone's camera more often to get that delicious bokeh that most phones can't produce, but the HTC One M8 can via UFocus.

Coming from a Samsung Galaxy S4, I love the HTC One M8. Unless you are a die hard Samsung fan and utilize everything from the multi-window capabilities to Samsung applications, I think you would be hard-pressed to not like the HTC One M8 after trying it out. And to all Apple users, what is taking you so long to come over to Android? You're missing out!

Additional Pictures

Sagar Chinese Restaurant

2013-10-06T17:01:00.000-04:00

These were taken at Sagar Chinese Restaurant.

It's a Chinese/Indian Fusion restaurant near Hillside Ave, Queens.

It was delicious. Recommended!

All pictures taken with the Olympus OM-D w/ Panasonic Leica 25mm f/1.4.

Creative Commons Noncommercial (CC BY-NC-ND 2.0)

What Are In-Ear Monitors (IEMs)?

2013-01-29T02:44:00.005-05:00

With the advent of portable music, a majority of people listen to music with headphones or earphones. Why not listen to your music the way it's meant to be heard? Higher fidelity audio can now be enjoyed on-the-go. While there is already a large market for high-end headphones and earphones, today I would like to recommend a type of headphone that I firmly believe are the best portable headphones: in-ear monitors.

In-ear monitors (often abbreviated to IEMs) are essentially like earphones, except they form a seal within your ear canal (do not confuse this with your inner ear). This seal helps reduce outside noises by approximately -20 through -28 dB. This is called noise isolation, and it is different from noise cancellation (which removes outside noises by utilizing frequency waves to annihilate the ambient waves coming from outside).

The result from this noise isolation? Better attenuation of details in music, as details usually drown out when you are listening with earphones and ambient noise is leaking in. Not only this, but you crank the volume much less than you normally would, since you can listen to your music at lower volumes.

IEMs provide a much more comfortable fit when used with foam tips. Better yet, they don't fall out of yours ears like regular earphones.

Image Source: djtechtools.com

However, the real advantage of in-ear monitors lie in their exceptional technology. IEMs often utilize 2 or 3 sound drivers to "separate" the sound frequencies between the lows (for bass), mids (midrange—for vocals), and highs. Secondly, the type of driver technology used is often Balanced Armature drivers (I go into detail about the difference between Balanced Armature drivers and Dynamic Drivers in my post here). By utilizing several sound drivers, audio quality tends to skyrocket. Your favorite band sounds like they are right there in the room playing with you. Vocals are pristine and clear. Bass is clean and without distortion. Highs shine without being drowned out by everything else.

Many IEMs utilize multiple drivers. The result is an increase in sound quality.

Image Source: shure.co.uk

The end result? You can actually appreciate the rawness of an electric guitar or the thumping beats in hip-hop songs. Sometimes, you realize that you haven't actually listened to your favorite band before this increase in audio quality.

Overall, there are three attributes about IEMs that make them stand out among other headphones:

Noise Isolation: This results in better attenuation to details in music and no need to crank up the volume to dangerous levels.
Sound Quality: Multiple drivers often result in a tremendous increase in sound quality. Since each speaker only focuses on one range of the spectrum (i.e., one speaker for mids, highs, and lows), distortion is very low while details are preserved. Many (not all) IEMs utilize multiple drivers.
Comfort and Fit: IEMs super soft foam tips can be used (such as Comply tips), which are compressed prior to insertion, and then expand in your ear. When they're done expanding, you can barely feel anything on.

You may be thinking "But I hate sticking things in my ears!". In that case, IEMs may be a good choice.

A majority of IEMs are compatible with foam tips—which are not only super soft, but also have fantastic seals compared to plastic tips. Foam tips can be compressed prior to insertion, and once they're in your ears they expand to fit the shape of your ear canal. Thus, IEMs with foam tips can be much more comfortable than earphones that irritate your ears or constantly fall out. One of the best manufacturers of these types of foam, Comply, offers multiple types of soft tips for a variety of IEMs.

Soft foam tips (such as Comply tips) offer superior comfort compared to earphones.

Image Source: noisyhotel.com

IEMs range in their audio quality and prices. Some of the most affordable IEMs start around $100—however, these IEMs are usually single balanced armature driver IEMs and do not offer a good balance between value and audio quality. Moving up towards higher fidelity IEMs usually results in 2 or 3 drivers being utilized. These IEMs range between $200-$400+ in price, depending on their configuration and brand. The important thing to note is that IEMs should be considered as an investment, as they do not usually fail from wire issues and driver failures. If they do, most IEM manufacturers offer a minimum of a 1-year warranty, with others offering 2-year warranties and higher.

With a variety of IEM manufacturers including Shure, Sennheiser, Westone, and EarSonics, it can be difficult to choose the right IEM for you. It is important to make sure that you know what type of sound signature you prefer (be sure to see my post on sound signatures here), as well as the type of music you listen to and enjoy. You can also consult the head-fi forums for more information regarding IEMs and which IEM is right for you.

If you do decide to purchase IEMs, enjoy the increased noise isolation, sound quality, and comfort. You may just rediscover details in music that you've never heard before!

Basics of Technical Analysis — Charts

2012-09-19T00:02:00.002-04:00

Technical analysis is often criticized for its lack of scientific proof, modeling capability, and "abstract" approach to analyzing stocks. While technical analysis on its own may not be very powerful—when combined with other forms of analysis such as fundamental analysis and simulations, it may provide a unique insight into the market.

Today I would like to introduce some basic charts utilized by technicians. We have all seen the standard line chart. The line chart is the most basic chart, as it only takes into account the closing price of the stock for a set period of time. There are advantages and disadvantages to line charts. One of the biggest advantages of the line chart is that it offers a clean, easy-to-see representation of a stock trend. However, there are many disadvantages of a line chart—they do not contain intraday information, high/low information, nor do they show the range that the stock traded during the day.

A line chart.
Source: stockcharts.com

A second chart often used by traders is called the bar chart. Bar charts alleviate the disadvantages of the line chart by providing high/low information and range information. The top of the bar chart represents the high for the stock during the day, and the bottom of the bar represents the low for the stock. The horizontal line to the right of the bar represents the closing price. Sometimes, there is also a horizontal line to the left of the bar—this represents the opening price.

A bar chart.
Source: TradeStation

The third and final chart that I would like to cover is the candlestick. The candlestick chart was invented in Japan and was used as early as the mid-1600's to trade rice futures. A candlestick chart offers the same information as the bar chart, but a candlestick chart always includes the opening price. The actual "candlestick" is called the Real Body and what looks like a wick extending out of the candlestick are called shadows. The candlestick is shaded white (or green) to indicate a day where the stock closed higher, and black (or red) to indicate a day where the stock closed lower.

How to read a candlestick.
Source: Wikipedia.org

A candlestick chart.
Source: TradeStation

By utilizing a variety of different charts, you can gain a much better understanding of intraday price movements. Additionally, it is easier to see large price movements and the momentum of a specific stock by observing ranges and high/low information—both of which can be observed in charts like the candlestick and bar charts.

Olympus OM-D E-M5 In-depth Review

2012-05-08T22:09:00.002-04:00

Here is my in-depth review of the Olympus OM-D E-M5. This is an excellent camera for the amateur and the enthusiast. I highly recommend this camera.

Included in the review are sample images and a sample video:

Please let me know what you think!

Olympus OM-D Test Video (Low Light, Manual Focus)

2012-05-05T19:33:00.001-04:00

Here is a video I shot with the Olympus OM-D in low light using manual focus. I'm using the OM-D with the Panasonic Leica 25mm f/1.4 lens.

I am very impressed with the video quality from this camera. The audio is also very good.

Olympus OM-D Low Light Performance with Panasonic Leica 25mm f/1.4

2012-05-04T15:30:00.000-04:00

I took the Olympus OM-D out last night for some low light shots. The camera performed very well in low light, with outstanding image quality even at high ISO levels. The Panasonic Leica 25mm f/1.4 produced beautiful bokeh and colors. Here are some low light shots:

f/2.0 @ ISO 1600

f/1.4 @ ISO 1600

f/1.6 @ ISO 3200

f/1.4 @ ISO 400

f/1.4 @ ISO 1600

Olympus OM-D with Panasonic Leica 25mm f/1.4 Shots

2012-04-28T18:11:00.002-04:00

I took some pictures with the Olympus OM-D and Panasonic Leica 25mm f/1.4 and wanted to share :)

The second picture is with the Light Tone art filter applied. Some of the art filters are actually really good in my opinion!

Micro Four Thirds vs. DSLR Cameras

2012-04-13T20:56:00.002-04:00

Many people are familiar with DSLR (Digital single-lens reflex) cameras. Most DSLR cameras use an APS-C sensor, which is much larger than the sensor in your cell phone or your point-and-shoot camera. A large sensor allows the camera to receive more light—and typically, a larger sensor means that the camera will produce better images. However, in order to house this larger sensor the overall weight and size of the camera also increases—not to mention the cost of the camera. This is where a smaller, yet capable camera sensor system comes in: Micro Four Thirds.

As shown in the image above, the Micro Four Thirds sensor is much larger than a conventional point-and-shoot sensor (between 1/2.5" and 1/1.6"), but still smaller than an APS-C sensor and a Full Frame sensor.
Image source: Wikimedia Commons

The Micro Four Thirds System is a relatively new camera standard that has an image sensor which is much larger than a point-and-shoot's sensor, but still smaller than an APS-C sensor. This allows users to have image quality similar to a digital SLR camera while reducing the size, weight, and costs associated with digital SLR cameras.

The main advantages of Micro Four Thirds cameras include:

Reduced weight and size as compared to DSLR cameras
Excellent image quality as compared to point-and-shoot cameras
Interchangeable lenses on a single standard (it does not matter if you're shooting Panasonic or Olympus—the Micro Four Thirds standard allows for lenses to be interchanged as long as the lens is Micro Four Thirds)
Less expensive than DSLR cameras, while retaining most of the image quality

Micro Four Thirds cameras allow for interchangeable lenses.
Image source: Wikimedia Commons

One of the main features of Micro Four Thirds cameras is that the Micro Four Thirds standard allows for interchangeable lenses on any Micro Four Thirds cameras, provided that the lens is Micro Four Thirds. This allows the user to choose his or her lens and mount it to the camera instead of being stuck to a fixed lens on a point-and-shoot camera. Additionally, it does not matter if your lens is made by Panasonic and you are mounting it on an Olympus camera—as long as the lens is Micro Four Thirds, it will be interchangeable among different Micro Four Thirds cameras. This is a significant benefit, as users do not have to decide between manufacturers when purchasing lenses (i.e., Nikon and Canon).

Cameras like the Olympus OM-D include features like a magnesium alloy body and 9 FPS shooting, trending closer to the features offered by high-end DSLRS.
Image source: pli-it.blogspot.com

Created by Olympus and Panasonic in 2008, the Micro Four Thirds system has been gaining popularity among both the average consumer and the enthusiast. Upcoming cameras like the Olympus OM-D ($999 for body only, $1299 with 14-50mm kit lens) includes features usually found in high-end DSLRs such as a Magnesium Alloy body and 9 FPS capability. For the consumer looking for a simpler point-and-shoot type of camera can opt for a cheaper Panasonic DMC-GF2, which costs less than $400 with a 14-42mm lens and offers much better image quality than a comparable point-and-shoot in the same price range.

This new camera format is causing many users of DSLRs to sell their camera gear and move over to the Micro Four Thirds system. Keep in mind, a full frame DSLR such as the Canon 5d Mark II will still have superior image quality when compared to a Micro Four Thirds camera, because of the larger image sensor. However, for users who do not shoot professionally and want to carry a smaller, lighter, camera that offers outstanding image quality—the Micro Four Thirds system offers more for less, when compared to a bulky DSLR. And it is this "bang for the buck + size + weight + image quality" combination that is making the Micro Four Thirds system gain so much popularity.

OLED vs. LED-LCD and Current HDTV Technology

2012-03-15T04:10:00.001-04:00

TV Technology always seems to be improving. With CES 2012, we have been exposed to more OLED devices, and more notably OLED TVs. OLED stands for organic light-emitting diode, and it is paving the way for better picture, higher contrast, and thinner televisions and visual devices.

OLED TVs on display at CES 2012.
Image source: treehugger.com

What is the difference between OLED and LED-LCD TVs which are available now? To summarize a huge subject in to a few sentences: OLED does not require a backlight, as compared to an LCD which requires a backlight (the backlight being LEDs in an LED-LCD TV). This simple fact allows an OLED to be drastically thinner than conventional HDTVs out today.

Another huge advantage of OLED displays is the fact that they have the potential be twisted and turned to almost any degree, given their extremely thin nature and no need for a backlight.

OLED displays have the potential to be twisted and bent in many different angles
while preserving the image. Try that with a conventional screen.
Image source: mydigitallife.info

OLED technology has always been in the back of manufacturers' minds, but recently the technology has finally seen the momentum that the market has been waiting for. With an already saturated LCD TV Market, new technologies must break the barrier of what is possible in terms of image quality, contrast, and realism. OLED is exactly that new technology which will revitalize a market that currently seems capped.

Many cellphones already use an AMOLED screen which offers a drastic different when viewing pictures and video. OLED technology has been expensive to develop, but like any other technology, with time prices come down (we can see this same trend in the SSD market).

OLED redefines how thin TVs can be.
Image source: treehugger.com

Get ready for the new revolution past the standard HDTVs that we have on the market today. With OLED, we will certainly see drastically better picture quality, contrast, and with that, the possibility of a new HDTV standard with a much higher resolution than 1080p. Strap yourselves for an exciting decade in visual technology.

Chairman and Three Directors from Yahoo Step Down

2012-02-08T02:35:00.002-05:00

Yahoo! Inc. has been experiencing a plethora of changes recently. First beginning with CEO Carol Bartz being removed as CEO and replaced with Mr. Scott Thompson. And now, three directors from Yahoo's Board of Directors are stepping down. In addition, the Chairman, Mr. Roy Bostock has also stepped down.

Former Chairman of the Board, Roy Bostock stepped
down along with two other directors.
Image Source: AP

What do the new changes mean for Yahoo? With Google continuously applying pressure to Yahoo's search engine, and a failure of the Bing contract with Microsoft, Yahoo is in need of dire change. Perhaps this change will not only please stockholders, but may introduce inherent changes to the company's technological direction and focus.

Only time will tell—over at Yahoo however, time is something far from perpetual—which gives further reason to the changes to the Board of Directors.

Google Acquires Motorola Mobility - What Now?

2011-08-16T22:22:00.001-04:00

Google (GOOG) has recently announced that they will be acquiring Motorola Mobility (MMI) for a whopping $12.5 billion. The deal was under wraps even within Google, as only top management knew about the acquisition up until this week, when Google officially announced their largest acquisition.

The acquisition shakes things up in an already competitive mobile-phone market comprised of giants like Apple, Microsoft, and RIM. What makes this acquisition more interesting is the fact that Google is the developer of the widely popular Android mobile operating system, which already comprises approximately 48% of the market share of worldwide phones operating systems (Canalys, 2011).

The Android operating system is designed by Google and is one

of the most popular operating systems in the mobile phone world.

Image Source: android.com

However, this poses antitrust and regulatory issues for Google in court. Google is optimistic that the acquisition will be given a green light albeit it is possible there will be several conditions set forth by the court. Such conditions include a "chinese wall" between Google's Android division and Google's hardware/manufacturing divisions for handsets to avoid any preference for Motorola products before other manufacturers such as LG, Samsung, and HTC. For example, Google may effectively seize more market share with Motorola if they choose to release new versions of Android onto their Motorola products prior to releasing them for use on other phones. In addition, if the acquisition does go through, Google has agreed to pay $2.5 billion in cash to Motorola Mobility--a sign of the regulatory risks involved with this acquisition.

Google's acquisition of Motorola Mobility may put Google in a stronger position to
compete with the Apple iPhone's huge market share in the mobile phone market.
Image Source: eastersealstech.com

One of the primary benefits of this acquisition is that Google will now have the ability to manufacture and design their own phones with ease, something that rival Apple has had the power of doing for years with their iPhone. Additionally, Google gets an arsenal of patents (17,000 and counting to be exact, with 7,500 pending) to defend their designs with. Recently patents have been an essential part of defending and attacking other companies which attempt to replicate certain design features and software features; for example, Apple recently sued Samsung over their Galaxy Tablet 2, which resembles the Apple iPad 2.

With the ability to manufacture phones on a much larger scale than before, as well as the ability to defend intellectual designs with thousands of patents, Google may be making quite a good decision in acquiring Motorola Mobility. Only time will confirm whether or not it was a good decision in the long run.

Basics of Stock Orders - II: The Limit Order

2011-06-15T16:26:00.004-04:00

In my last post I covered the advantages and disadvantages of the Market Order. In this post I would like to talk about another very popular stock order: The Limit Order.

A Limit Order is very different when compared to a Market Order. Unlike a Market Order, a Limit Order does not execute instantaneously nor does it choose the best available price on the market for the stock. What is the advantage of a Limit Order, then? The primary advantage of a Limit Order is that you are able to set the price at which you want to purchase the stock.

The primary advantage of a Limit Order is that you can "name your own price" for the stock that you want to purchase. This is particularly helpful for stocks that are very volatile during a trading day.

Image Source: psdgraphics.com

Assume that there is a stock, say Apple (AAPL), trading on an uptrend one day. If the stock is appreciating and you expect the stock to continue rising in price, you would want to purchase the stock at the lowest price possible so that your gains can also be greater. However, if the stock is behaving in a volatile manner (swinging up and down rather than appreciating in a smooth uptrend), it would be rather difficult to hone in on a low price as the price may change as soon as you execute the order. This would likely be the case when executing a Market Order, as the Market Order will execute immediately and take the best available price available.

So how can you safeguard your decision to purchase Apple stock while still avoiding the volatility of the stock price? The Limit Order can be the perfect stock order to help you in this situation. When setting a Limit Order, you are essentially "naming the price" at which you want to purchase the stock. For instance, if Apple was trading between $326 and $327 the moment at which you wanted to purchase the stock, and you wanted to purchase it at $325.50, you simply input the "$325.50" as the price on your Limit Order.

A Limit Order will only execute when the stock price has reached your target price. In this example, the pink line represents the target price and the blue line represents the stock price. Notice how the stock price intersects the target price, triggering the Limit Order to execute.

Image Source: selftrade.co.uk

Does this mean that you will end up purchasing Apple stock at $325? Not exactly. See, the advantage of the Limit Order is its precision in choosing price--the disadvantage on the other hand, is that that price may never be reached. So in this case, if Apple stock kept appreciating from $326 to $327 to $328 and onwards, your Limit Order will never execute because you set the price at $325.50! Thus, you would never get the stock in your hands.

However, if the price of Apple stock dipped slightly and hit $325.50, even for just a brief moment, your Limit Order will execute and you will purchase Apple stock at $325.50. From that point onwards, if Apple stock kept on going higher, you would gain more profits than you would have if you executed a Market Order and ended up purchasing Apple stock at $326 instead of $325.50.

If this is still unclear to you, think about it this way. A Limit Order is like a highlighter which highlights a specific price on an entire sheet of prices. You can only highlight one price. Suppose our sheet has every price from $325.00 to $327.00, including all of the decimals in-between. You highlighted only one price: $325.50. Now suppose that Apple stock is swinging between $326.30 and $326.20. Since the stock price hasn't gone down far enough to hit your highlighted $325.50, your stock order will not execute. However, if the stock price is very volatile and swings down and hits your $325.50, your Limit Order will execute and you will purchase Apple at exactly $325.50.

A drawback to the Limit Order is that the stock price may take some time before it reaches the target price. In fact, the stock price may never reach your target price. Thus, the Limit Order may never execute.

Image Source: mergersandinquisitions.com

The beauty of the Limit Order is that you can set up a Limit Order and leave your computer and do other activities, since you have the peace of mind knowing that the Limit Order will only purchase the stock at the price at which you specified (or better), or it will not execute at all.

Because of its precision, the Limit Order is a very popular stock order. Unlike the Market Order, a Limit Order has the ability to target a single price and purchase the stock at that price only. The disadvantage to this is that it may take a long time for the stock to hit that price--or it may never even hit that price! To avoid this, many investors use a realistic Limit Order within two decimal places. Suppose Apple is fluctuating between $325.50 and $325.75. It would be more realistic to set a Limit Order at $325.60 than it would be to set a Limit Order at $325.40, since the stock price is not moving at that low of a range yet.

Used in conjunction with the Market Order, a Limit Order can be one of the most important and essential stock orders for any investor!

Look forward to my upcoming post in this series!

Basics of Stock Orders - I: The Market Order

2011-06-06T23:19:00.005-04:00

Well after my final exams, I think it's finally time to start posting regularly again!

Today I would like to supplement my previous series, The Basics of Stocks, with a new series: The Basics of Stock Orders.

When executing any stock trade, there are a variety of different orders from which you can choose. Many of these stock orders are confusing for new investors, so I would like to cover them all in separate posts. Today, we will be covering one of the most popular orders: the Market Order.

With a Market Order, there is no haggling on the price since the Market Order will purchase the stock at the best possible price available on the market--thus
getting the stock into your account as quickly as possible.

Image Source: englishfromfriends.com

What is a Market Order? Essentially, it is a stock order where you prioritize time over price.

Consider the following scenario: suppose you are planning on purchasing Google stock one day. Suppose that it is 3:50 PM and the stock market is close to closing at 4:00 PM. During this time, there is a lot of volume on the NASDAQ, which consequently also means that the price will fluctuate a lot during this brief time period.

If you are really optimistic on Google stock and expect it to appreciate, then you will want to purchase the stock as cheap as possible. However, remember that during the last 10 minutes of the day the stock price is fluctuating quite a lot, and your trade may not get executed at the exact price which you want. Suppose Google had been trading at around $519-$526 a share during the day, and more around $521 during the end of the day (from 3:30 PM onwards). From 3:30 PM onwards, the stock may fluctuate rapidly between $521 ± $1, which may not seem drastic but is indeed a big difference when you are purchasing many shares at once.

If you expect Google stock to appreciate, you would want to own to own it as soon as possible at the best possible price; considering this situation coupled with the final minutes of trading, a Market Order may be a viable stock order.

Image Source: Yahoo! Finance

Additionally, keep in mind that you expect Google stock to appreciate, and thus you want to own shares today. Because of your optimism on the stock's performance, coupled with the time (3:50 PM, 10 minutes from the NASDAQ closing), there is very little space for you to get the price you want as well as your trade executing (remember, in a stock trade there must be a buyer and a seller).

It is during this time that a Market Order will be most beneficial. The Market Order, unlike a Limit Order (which I will cover in the post following this), prioritizes time over price. This means that the Market Order is indifferent on the price of Google stock on the market--it simply wants to get you the stock in your hands as soon as possible (as you want to own it today because you expect it to appreciate either tomorrow, or sometime soon, and purchasing it tomorrow would ruin any profits). Assuming you have sufficient money in your account, the Market Order will execute at the best possible price available on the market.

A Market Order prioritizes speed over price, making it a good order for investors looking for a fast executing order during final minutes of trading.

Image Source: aroundthetrac.com

The Market Order is an instantaneous order which does not require specifying a price. So if Google happened to be trading at $521.30 the moment right before you executed the Market Order, you may end up buying Google at $522.10, since that may be the best possible price available that instant in which the order was executed (keep in mind that there are thousands of other orders coming in simultaneously during the last 10 minutes of the market). The downside to this is of course, that you purchased the stock for a higher price than you could have gotten it if you had specified your price and waited for the stock to trade at that price. The upside to this however, is that your order was executed instantaneously and thus you own the stock albeit purchasing it for a higher price.

In summary, the Market Order is an instantaneous stock order which has an upside and a downside:

Upside: A Market Order is instantaneous and will purchase the stock at the best possible price available on the market, thus getting the stock in your hands faster than any other order.

Downside: The Market Order is price indifferent--meaning that you may end up purchasing the stock for a higher price rather than a lower price. This may cut in on your profits, but assuming that owning the stock was your priority, this downside is worth the risk.

The Market Order is a very popular order and is often used when an investor prioritizes owning a stock over the price paid for the stock. Paired with other stock orders, the market order can be a wise order given the right circumstances and conditions.

Look forward to my upcoming post on Limit Orders!

Final Exams

2011-05-19T20:16:00.000-04:00

Hello all!

Unfortunately, final exams are around the corner. In fact, I have one tomorrow and three final exams next week.

You have probably noticed a lack of posts and this is because I am studying hard for my exams.

Hopefully you'll look forward to some very interesting posts when I get back!

Thank you!
Salman

Solve Complex Problems With Unused Computing Power (using BOINC)

2011-05-08T17:37:00.003-04:00

Imagine if everyone's computers were combined together to create one big network of computing strength more powerful than any supercomputer on earth. That's what BOINC (Berkeley Open Infrastructure for Network Computing) does, and you can be a part of it today.

Many people are oblivious to the fact that there is quite a lot of computing power going unused each and every day. The fact of the matter is, nearly everyone has a desktop computer or a laptop computer these days. However, how often do we put our actual computing power to use? Most of the time we are not using our computer for very demanding work--sometimes we will render a video here and there, play a few games, or do some other work that actually uses our computing power.

Folding@home simulates protein folding using distributed computing. It currently operates at above 7 native petaFLOPS, with a large majority of the performance coming from GPU and PlayStation 3 clients. In comparison to this, the fastest standalone supercomputer (non-distributed computing) in the world (as of November 2010, Tianhe-I) peaks at approximately 2.56 petaFLOPS.
Image Source: news.cnet.com

Now with this being said, there is a large amount of computing power that we can still tap into. Imagine if everyone's computers were combined together and synchronized together to take on even the most challenging computational problems, such as protein folding or galaxy formation. That is what the BOINC project does (Berkeley Open Infrastructure for Network Computing).

How it works is simple. Say your computer is idle for an hour or two a day, or you're simply surfing the internet and not using your compute for much more. Well, in that amount of time you can leave BOINC running in the background and it would have completed several work units (WU's) which will be sent to the central server and then used in conjunction with thousands of other work units to observe the characteristics of protein folding (crucial in cancer research--folding@home), galaxy formation (MilkyWay@home), mathematical problems (abc conjecture in number theory--ABC@home), and much more.

This way, you are tapping into the unused computing power of your computer and contributing to the advancement of mankind at the same time. It's a wonderful way of utilizing unused resources in our world for advanced research.

MilkyWay@home renders complex N-body simulations which are used to generate 3D dynamic models of stellar streams near the Milky Way galaxy.

Image Source: Wikimedia.org

Many computer enthusiasts also use the BOINC platform to test their computer for speed and performance, since it uses up every bit of computing power available, it is a good stress test for overclocks and gamers. However, the beauty of BOINC is that it is simple to use and can be used by anyone--computer savvy or not.

Take for example folding@home (though not technically a BOINC project, it is distributed computing). It is a single download which you install and then simply run to compute work units. Many people also join teams and organizations to see who has the most points or work units. It turns into a competition for the benefit of all!

The unique feature of BOINC is that it can attach not only one project, but nearly an unlimited amount of distributed computing projects. It is the most popular platform under which many distributed computing projects thrive.

Image Source: boinc.berkeley.edu

If you are interested in participating in the BOINC project for distributed computing, you can start today. There are many projects available. In some instances you can even use your graphics card to do work that would normally take hours--in a few minutes (for those of you with powerful graphics cards out there).

Some popular distributed computing/BOINC projects are:

folding@home: designed to perform computationally intensive simulations of protein folding and other molecular dynamics (MD), and to improve on the methods available to do so (though not technically a BOINC project, it is distributed computing).

MilkyWay@home: attempts to generate highly accurate three-dimensional dynamic models of stellar streams in the immediate vicinity of our Milky Way galaxy.

SETI@home: to analyze radio signals, searching for signs of extra terrestrial intelligence, and is one of many activities undertaken as part of SETI.

LHC@home: to help maintain and improve the Large Hadron Collider (LHC), which became active in September 2008.

PrimeGrid: project for searching for prime numbers of world-record size.

Climateprediction.net: project to investigate and reduce uncertainties in climate modelling.

Astropulse: to search for primordial black holes, pulsars, and ETI.

Einstein@home: searches through data from the LIGO detectors for evidence of continuous gravitational-wave sources, which are expected for instance from rapidly spinning non-axisymmetric neutron stars.

--

Personally, I am currently active on MilkyWay@home and folding@home and plan to try out many other distributed computing projects soon!

Let me know which project you plan to join in a comment!

Which Headphones To Buy? - Part II: Sound Signature

2011-05-05T17:34:00.015-04:00

Ever get confused by the language that wine connoisseurs use when describing high-priced wines? Terminology for niche products such as expensive wines, computers, and even headphones are indeed necessary to describe subtle but important differences; many users unaware of such attributes may overlook these nuances.

Headphones are one of these products. Every headphone has a different sound signature, almost like a wine has a unique taste regardless if it falls into larger categories such as Red Wines or White Wines.

There is a lot of jargon within the audiophile community involving sound signatures in headphones, but today I wish to clarify some of these terms in order to make it easier for you to purchase the headphone that is right for you.

Many headphone sound signatures can be compared through a Frequency Response Curve. However, this does not ultimately reveal what the sound signature of the headphone is--it is more of a glimpse into how the headphone may sound.
Source: headphone.com

Headphones fall into three large categories, after which other attributes follow a hierarchical structure or a branch structure. All of these main categories have strengths and weaknesses.

These three main categories are the following:

1) A "Colored" sound; this sound signature means that the headphone is taking in the audio signal and is manipulating what the audio input is telling the headphone. The end result is either a bassier sound, a "brighter" sound which emphasizes vocals more or instruments more, or simply a "clearer" sound. Colored headphones tend to "Wow" at first but may reveal flaws such as a muddy bass response or a lack of a realistic vocal range. However, colored headphones are usually the most popular headphones due to their initial "Wow" factor.

Some examples of colored headphones are: Bose QuietComfort, Dr. Dre Beats, Skullcandy headphones. Personally, I do not enjoy colored headphones at all.

2) An "Analytical" sound; this sound signature is usually associated with a large amount of clarity in the headphone. Even the tiniest details and nuances can be heard, such as pages being turned in a classical music symphony, or the sound of air rushing through the vocal chords of a singer before words come out. However, this analytical sound tends to be weak on a "musical" presence. Cohesiveness of the audio is sometimes a flaw in analytical sound signatures.

Some examples of analytical headphones are: Etymotic ER-4P, Shure SRH840. I enjoy analytical headphones from time to time.

3) A "Neutral" sound; this sound signature is what audiophiles usually lean towards. A neutral sound signature takes the audio signal and barely touches it. What the headphone strives towards is an accurate reproduction of what was recorded, not bass boost or a treble boost. Neutral headphones are usually harder to tune properly by the manufacturer due to the ear's natural tendency to hear different frequencies at different volumes. A decent neutral headphone will have a very clear sound and a "musical" enjoyment to it. However, neutral headphones are usually said to be "uninvolving" or not enjoyable due to there being no "fun factor" in listening to the headphone.

Some examples of neutral headphones are: AKG K702 , Sennheiser HD600 & HD800, Beyerdynamic DT-880. I am a big fan of neutral headphones and use them often.

The Etymotic ER-4P is famous for its analytical sound signature and extremely detailed sound quality.
Source: headphoneworld.com

Again, all of these sound signatures have strengths and benefits. However, after listening to many headphones it is easier to tell which sound signature suits your tastes. For example, I prefer neutral headphones with a touch of an analytical sound signature and a slightly warm midrange.

If you have the opportunity to visit a Head-fi meet where users bring many headphones and amplifiers, you will have an easier time understanding which sound signature is right for you. Head-fi.org usually has several headphone meets every year, and some may be very close to your location! (For me, there was one in New York City so it was right where I was located). If you can't go to a head-fi meet, then it is good to try out many headphones at a department store or an electronics store. Usually a big name manufacturer like Sennheiser has its own "house sound" which tends to remain the same across their different models, changing slightly. So by trying out many different brands, you will expose yourself to different "house sounds" and it will then be easier to make your final decision.

Certain genres also tend to have good synergy with specific sound signatures. For example, Pop music tends to pair well with Colored Sound Signatures or Analytical Sound Signatures. Jazz and Classical tend to pair well with Neutral and Analytical Sound Signatures. Hip-Hop tends to pair well with Colored Sound Signatures. However, a very good headphone will usually sound OK with any genre, regardless of the headphones' sound signature. It may not make that genre sound as good as it can be, but it will produce a sound that is certainly satisfactory.

The Sennheiser house sound is enjoyed by many. It is described as a "laid back" sound signature with a warm mid-range and a deep bass response that is not overpowering. The Sennheiser HD 650, pictured above, requires a good headphone amplifier to bring out its true potential.
Source: WikiMedia Commons

It is important to note that so far we have only covered the three major categories for headphone sound signatures. Each of these categories can be further broken down more precisely in terms of how they actually produce sounds in certain frequency ranges, but I will save that for a future post.

To summarize, every headphone has a unique sound signature that tends to fall into one of three main categories. These categories are: colored, analytical, and neutral. Depending on your tastes, some of these sound signatures will sound OK to you will others may not be satisfactory. However, a large portion of this depends on what genre of music you are listening to on the headphone, as well as your personal expectations of the sound.

Nevertheless, if you do plan on purchasing headphones, it is well worth your time to research and try out different headphones to find out which sound signature suits you--it will save you money, time, and the frustration involved in purchasing the right headphone for you.

Which Headphones To Buy? - Part I: Narrowing Down

2011-04-29T17:08:00.012-04:00

In continuation of my audio series, I think it's time to cover an important topic for all audiophiles, and in general people seeking good quality gear: Which headphones are right for me and which should I buy?

Headphones and in-ear monitors (IEMs) have come a long way within the past 10 years. We've went from cheap $10 solutions to fully blown out custom in-ear monitors and reference headphones costing in excess of $1K. Selection has increased at least three-fold, with a wide selection of colors, styles (running, casual, full-size for mostly at home, etc.), and purposes. And to top it all off, we're left with endless marketing campaigns and gimmicky advertisements which lure us to a specific headphone or brand (Monster anybody?). But are we actually purchasing the item for its actual purpose, or for the brand recognition?

Impedance and electrical power is an important factor in deciding which headphone/in-ear monitor you will purchase. Many headphones/in-ear montiors require a headphone amplifier to sound their best. Sometimes high impedance headphones require amplifiers more expensive than the headphone itself to sound its best, like the Ray Samuels Audio Emmeline II headphone amplifier pictured above.
Source: raysamuelsaudio.com

Pushing my personal vendetta against certain corporations aside, I would like to establish some basic facts about purchasing a good set of headphones or in-ear monitors. First, we need to know what you will be using these headphones/in-ear monitors for, along with your expectations of the sound quality as well as the primary genre of music you will be listening to with the headphones/in-ear monitors.

Ask yourself the following questions to narrow down your list of possible headphone/in-ear monitor purchases:

1) Are you buying for sound quality, brand appeal, or appearance? Or perhaps one or two from the three? If you are going for pure sound quality, then it is easier to narrow down your selection (contrary to popular belief, the mainstream "audio" companies to do not manufacture audiophile-quality headphones/in-ear monitors--Bose and Skullcandy are good examples).

2) What genre(s) of music will you primarily listen to with the headphones? If you have a mixed collection of music, what genre of music comprises the majority of your library? For example, 40% Classical, 30% Jazz, 20% Pop and 10% Other. This way, you will be able to purchase a headphone better suited to your tastes.

3) Are you going to use these headphones/in-ear monitors only at home or outside as well? Or both?

4) Do you want to purchase noise isolating or noise cancelling headphones? See my post on the difference.

5) Do you have a proper DAP (digital audio player such as an MP3 Player) to support the amount of electricity that the headphone/in-ear monitor needs to work at its best sonic quality? Certain headphones that are full-size (such as the AKG K720) require a headphone amplifier in order to achieve best sound quality due to their high electrical impedence.

6) What is your budget? Keep in mind that you get what you pay for in this hobby, and it is better off to start from something mid-priced before jumping on a really expensive piece of gear that you might not be able to amplify or pair properly with a DAC/DAP.

Sometimes many headphones can be eliminated from simply asking yourself whether you will use your headphones at home, outside, or both. Headphones like the AKG K702 pictured above are open headphones, meaning they leak music out to the environment and do not isolate from external noise, since they are designed to be used at a home/studio.
Source: sgheadphones.net

After asking yourself these questions, I can guarantee that it will be easier to narrow down your possible headphone/in-ear monitor for purchase. For example, if you answered the following:

1) For sound quality, nothing else. --> Eliminates a bunch of brands that are not focused on sound quality.
2) Primarily Pop, R&B, and Jazz. --> Eliminates some headphones not suited for these genres.
3) At home as well as outside. --> Eliminates many full-size open headphones due to their leakage outside.
4) Noise isolating or noise cancelling, it does not matter. --> Opens up more headphones for consideration within the narrowed list.
5) No, I only have an iPod. --> Eliminates high-amplifying-requirement headphones like the AKG K702.
6) Under $200. --> Eliminates headphones above $200.

Avoid jumping the gun and buying expensive headphones from the start. You will not be able to fully appreciate the differences and may have difficulty amplifying the headphone to make it sound its best. The Sennheiser HD800, pictured above, sells for $1499 MSRP but requires a very good amplifier (for its 300Ω impedance as well as sound signature), DAC combination, lossless/near-lossless audio, and to make it sound its best, which can run well over twice that amount. Don't try running these headphones straight out of your iPod.
Source: sennheiser.com

By simply answering six questions, you have virtually narrowed your headphone/in-ear monitor possible purchase(s) to probably around 10-12 at this point.

To further narrow down to that single headphone/in-ear monitor, we must now focus on something much more crucial than all of these factors: sound signature.

Look forward to my post about sound signatures in headphones to finally determine how to narrow down to that single headphone! (Sorry for the cliffhanger ending!)

The Basics of Stocks - Part II: Investing In Stocks

2011-04-16T21:07:00.010-04:00

There are many ways to make an investment and receive a profit in the world. Some common investments include: trading goods or services for money, purchasing a plot of land to let its value appreciate, and investing in bonds and stocks. But how exactly can stocks be used to produce a profit, and more importantly, what are the steps to go about trading stocks if you are a beginner?

Let's refresh ourselves on what a stock is once more. Quite simply, a share of stock is a partial stake of ownership in the company that you are purchasing stock from. This partial ownership of the company can be used for voting for changes in the company, as well as for making a profit from the company's value. So where can you, the investor, find the stock and how can you purchase it?

The New York Stock Exchange (NYSE) pictured above, is a major stock exchange. However, you don't need to physically be at the exchange in order to trade stocks. Online brokerages allow for trading right from your living room!
Image Source: nybeyondsite.org

First, let's find out where you can find stocks to trade. Stocks are traded on a stock exchange, such as the NASDAQ and NYSE. A stock is traded only on one exchange. For instance, Citigroup (C) is traded on the NYSE--this means that the stock is not traded on the NASDAQ. It can only be found at the NYSE for trading. However, you don't have to physically go to the exchange in order to trade stocks. Since most stocks are traded through an online brokerage firm, you don't even need to leave your living room in order to trade stocks. What is the online brokerage firm? In layman's terms, the brokerage firm acts as the "middleman" between you and the exchange--just as a broker acts as a middleman for any transaction between a buyer and a seller. In return for the brokerage's service, you pay a commission for the transaction (this is called a commission fee and is usually around ~$10 USD for a single stock transaction for most online brokerages). Some popular online brokerage firms are: E*TRADE, Scottrade, and TD Ameritrade to name a few.

Now that we know where to trade stocks, let's take a look at the stock's properties. A stock has many properties--and I mean many properties--that are studied and constantly interpreted to make analysis tools in order to predict the stock's behavior. However, since we are only covering the basics of stocks, we will ignore these more intricate attributes and cover them later.

A stock--any stock--has three basic properties.

A stock symbol (also known as a ticker), is a unique identifier for the company associated with the stock.
Image Source: mediabistro.com

Firstly, a stock has a symbol (also called a ticker), which is used to represent the company in the exchange. A stock symbol is usually between one and four characters, but can be longer for certain cases. Some commonly traded stock symbols include: Google (GOOG), Citigroup (C), Amazon (AMZN), Apple (AAPL), International Business Machines (IBM). As you can see, the stock symbol is useful in condensing the name of the company.

Secondly, all stocks have a price. This price is determined by many things, but to put it simply, it is the investors (buyers and sellers) that determine the price of the stock by simply investing. The price of a stock can range from pennies a share (commonly called penny stocks) to hundreds--even thousands--of dollars for a share. The price of the stock is what follows after the stock symbol in nearly all brokerage firms and financial websites. The price that is shown on a ticker however, is usually ten minutes delayed from the actual price of the stock. However, real-time stock prices can be streamed at most brokerage firms. It is safe to say that the price of a stock is the single most important attribute of the stock.

The price of a stock is the most important attribute of a stock. It is important to note that the price of a stock can change over time, and in some cases, very rapidly. The price can be a double-edged sword for investors due to the potential for profit and loss.
Image Source: Google Finance

And finally, all stocks change in their price daily. Even though many may not consider this a property of stocks, I believe it is the single most important property of a stock. Why does the price of a stock change? As I mentioned earlier, the price of a stock is determined by the investors themselves. As the stock is bought and sold amidst investors, the stock price fluctuates accordingly. For example, if there are 100 investors for a single stock (assuming they all own the same amount of shares), and in a single day 60/100 of these traders decide to sell the stock while 40/100 traders decide to buy the stock, the stock price will fall as a net effect of more traders selling the stock than buying it. Not to delve too precisely into this, we just need to understand that the price of the stock is constantly changing due to this reason.

Now that we have understood the basic properties of a stock, how can we make a profit by investing in a stock? There are several ways to do this. The most common stock transactions are Buy, Sell, Short Sell, and Cover Short. For simplicity, I will only cover the Buy/Sell transaction in this post. Suppose that the stock you are looking to make a profit on is a hypothetical technology company. Furthermore, this technology company just released a new device that you believe will be very profitable and popular--a successful product. You predict that this company's value will increase as a consequence of this successful product. For this reason, you decide to buy the stock of this company today in anticipation for the price of the stock to rise in the future. Let's say you purchased 20 shares of stock at $50 a share for a total of $1000 in stock.

Investors can profit from many different trading strategies. In a "going long" strategy, investors can profit from an increase in stock price linked to the success of the underlying company.
Image Source: theinvestortoday.com

Fast forward six months down the road--and just as you predicted, the value of this company skyrocketed due to their product launch. And consequently, the price of the stock also rose in value to $85 a share. Remember those 20 shares of stock you purchased months ago? Right now, they are worth $1700 in total (20 x $85 a share = $1700). Realizing that you purchased the stock for $50 a share for a total of $1000 (20 x $50 a share = $1000), you decide to sell your 20 shares of stock for a profit of $700, since you initially purchased the stock for $1000 and now sold it for $1700.

This type of trading strategy is called "going long" since you are predicting that the price of the stock will rise due to the company's success. It is the most popular trading strategy--however it has its drawbacks. Suppose that instead of the product launch going successfully, the product flops and the company's value decreases. Consequently, the price of the stock dips to $35 a share. In fear of the stock price decreasing further, you decide to sell the stock to prevent further losses. Since the stock is now worth $700 (20 x $35 = $700), you made a net loss of $300 ($1000 - $700 = $300).

As a note, there are ways to prevent this type of loss by having a different stock transaction and/or a different trading strategy as well as a hedge against this transaction.

In summary, a stock is traded on a stock exchange and can be purchased via a brokerage firm. This brokerage firm will take a commission fee for the transaction, and you will own the stock. The three basic properties of the stock are its symbol, its price, and its change in price. And finally, a profit can be made by investing in the stock. There are many investment strategies--for a strategy in which you expect the value of the company to appreciate, you are "going long" on the stock. In such a trading strategy, if the price of the stock increases, you can profit by selling the stock and taking the difference between your initial purchase and your proceeds from the sell.

The Basics of Stocks - Part I: What Are Stocks And Why Do They Exist?

2011-04-11T16:27:00.014-04:00

We've all heard of Stocks. When we hear the word "Stocks", most of us think about those guys in suits on the NYSE (New York Stock Exchange) floor yelling and bartering with other traders. But what exactly are stocks and how do you invest in them? In this part of my mini-series on Stocks, I will discuss why stocks exist and how they are useful to a company and an investor.

To put it simply, a stock is almost like a piece of a company. When you purchase stock, you're buying a portion of that company--so you in turn become a partial owner of the company. But why and how did the stock even get there? Let's step back for a bit and understand why a stock is even in existence.

The NYSE (New York Stock Exchange) is one of the world's major stock exchanges where stocks and other financial instruments are traded.
Source: ceoworld.biz

Let's look at a hypothetical example where you are the owner of a private company and would like to expand to meet your rising demand. To do this, you realize that you would have to purchase an entire plot of land, build a factory on that land, and then purchase equipment and hire employees to work in the new factory. Now all of this requires money, and lots of it. If you don't have the capital to start this new expansion, then what can you do? Presuming that the cost of the new land and building is a large sum, getting a loan would be too pricey and too risky. The next logical step for a private company in this situation would be to issue stock.

When the company issues stock, what it is doing in layman's terms is giving up its private ownership for public ownership. This means that instead of one person (or a few people) owning the private company, the company is now owned by the public in the form of stock shares. What does this mean for the company and its owner? Firstly, the owner no longer has the same power that he or she once had over the company. In fact, a Board of Directors is usually set up by the shareholders to keep the company's boss(es) in check. This means that if you founded the company and start doing sneaky and fraudulent business, and the shareholders find out, you can easily be fired from your position and replaced by a new CEO.

Once a company goes public, shares of stock are purchased by the public. Stock Certificates were once used to show ownership of these shares, but in modern times they are rarely requested for printing.
Source: networkworld.com

So what can possibly be the benefit of this public ownership? Remember the plot of land, factory, equipment, and employee costs? All of those can now be covered because of the large influx of money coming in from the shareholders! Since the company is now divided into millions of shares which are then bought by the public--they get partial ownership of your company (along with a potential profit which I will cover in my later post), and in turn your company gets their investment for purchasing this share of your company. So in a way, your company is saved from the daunting interest, payments, and risk of long-term debt and is simply made public to receive that extra cash. Who exactly makes the stock valuation (called an IPO or Initial Public Offering)? It is usually an Investment Banking Firm such as JPMorgan or Goldman Sachs which does the stock valuation and does all of the calculations for a successful stock offering in the market (more on this in future posts).

There are clearly sacrifices made for this switch from a private company to a public one. Since your company is no longer private, you must now answer to the shareholders. This means that if the shareholders aren't satisfied with your company--chances are they will sell your stock and the value of your company will take a dive. This is why we often hear "XYZ Company must answer to the shareholders" when we flip on the news. The company's main priorities change, and they must satisfy their shareholders with progress and innovation, a good earnings report, and dividends (again, more on this in later posts).

Stocks can appreciate over time, increasing the value of the company--and profits to the investors. Above, Google's stock during 2009.
Source: Google Finance

The good news is that your company now gets a tremendous amount of capital to use for investing in future growth (such as the plot of land and equipment), research and development (we see a lot of R&D costs in technology companies), and for simply keeping a good cushion for your company in the case of natural disasters and other problems which may halt progress. There are also changes to the structure of the company as well as the transparency code which the company undertakes which can be a double-edged sword depending on your actions (BP anyone?).

So in short, stocks in layman's terms are used to transform a private company into a public one--the company is then available for purchase via stock shares; the company acquires a large amount of capital through this process, while sacrificing its private ownership for public ownership.

So now that midterms are over and my head has cleared a little bit, I thought "It's time to get back to posting!"

I wanted to write something about finance today (after having gone through two grueling Finance midterm exams last week, why not remind myself more about it?), and so here is your finance article!

Midterms and More Midterms

2011-04-02T18:01:00.002-04:00

I have a bunch of midterms for this coming week, so I apologize for the lack of posts!

Hopefully after this week I will be back to my normal posting routine!

Balanced Armature vs. Dynamic Driver

2011-03-25T14:56:00.012-04:00

How often have you stopped to wonder how those earphones that came with your MP3 Player actually produce the music that you hear?

If you've ever been to an Electronics store, you've probably stumbled across the Home Audio section. There you'll see a wide array of speakers, all with different sound signatures and purposes. However, the technology behind these speakers are mostly the same--it's how the speaker transducer is designed and tuned that makes the drastic difference.

There are two dominating speaker transducer designs on the market. The most popular speaker transducer is the Dynamic Driver (also less popularly known as the moving-coil driver). Pictured below, a Dynamic Driver uses a permanent magnet which is attached behind the diaphragm, along with a voice coil (usually made out of copper), to push air rapidly at different frequencies.

A Dynamic Driver Transducer, pictured above, is the most common transducer design used in speakers today.
Source: WikiMedia Commons

Not to get into the nitty gritty, the Dynamic Driver has been a very popular design because of its ability to produce the entire musical frequency range (~20 Hz - 18,000 KHz+) with relatively good success.

Have you ever seen a speaker design different from a Dynamic Driver? Well, I would like to introduce you to the Balanced Armature transducer (often abbreviated as a "BA driver") , pictured below.

A Balanced Armature Transducer, pictured above, does not require external air to produce sound. This makes a BA Transducer much easier to tune to specifications.
Source: WikiMedia Commons

A Balanced Armature is very small--and I mean tiny. These transducers are often used in hearing aids for people with difficulty hearing. More recently however, they have gained popularity in premium in-ear monitors for consumers and musicians alike. The Balanced Armature transducer uses the same concept of a permanent magnet and a voice coil as a dynamic driver, but the one major difference with the Balanced Armature transducer is that it does not require external air to operate. A Dynamic Driver, on the other hand, requires an air vent in order to sound marginally good.

The benefit of this design on the Balanced Armature is that it can be tuned very precisely since external air does not factor into the equation. This means that midrange and treble can be much more accurate and detailed than that of Dynamic Drivers. However, the Balanced Armature design also has a large drawback: since it does not require external air to work its best, it lacks a convincing low-end response (bass response). This is often alleviated by combining several Balanced Armatures together, and putting them on a single crossover.

The JH16 custom in-ear monitor (a 16 Balanced Armature transducer) pictured above next to the Sennheiser HD800 (a dynamic driver headphone). The JH16 in-ear monitor uses a passive triple crossover to redirect portions of the audio input to their respective Balanced Armatures.
Source: Headfonia.com

What the crossover does is it splits the audio input into two or three (rarely more) frequency bands. This alleviates the problem significantly, as each Balanced Armature is now only responsible for handling a certain portion of the audio. A triple Balanced Armature in-ear monitor such as the EarSonics SM3 uses a single Bass Balanced Armature, single Midrange Balanced Armature, and single Treble Balanced Armature. This changes the response of the in-ear monitor significantly, and the bass response becomes much more realistic and natural.

After having heard Dynamic Drivers for many years, I tried a Balanced Armature in-ear monitor (the Shure SCL4), four years ago. The midrange was impressive, but the in-ear monitor lacked bass and a realistic treble. I then upgraded back to a Dynamic Driver (the Sennheiser IE8), which made me miss the detail retrieval of the Shure SCL4.

It was then that I knew that something about the Balanced Armature transducer made music sound all the more better. So I upgraded again to a Triple Balanced Armature in-ear monitor, the EarSonics SM3. This in-ear monitor made me a true Balanced Armature fan, as it eliminated nearly all of the problems that I had heard with the Shure SCL4 (due to three Balanced Armatures instead of one).

After a year with the in-ear monitor, I wanted even more quality. So I decided to purchase a custom in-ear monitor (required an ear impression from an audiologist): the JH Audio JH16. With 8 Balanced Armatures in each earpiece (4 for lows, 2 for mids, and 2 for highs--for a total of 16 speakers with two earpieces), I have never heard such quality produced from an audio device in my life.

Don't ask me how much it cost me though! (You don't need to spend much to enjoy the sound of a Balanced Armature!)