Tag: products

  • Already GDPR-ed Out?

    Already GDPR-ed Out?

    Well, it didn’t take long. Less than a full week in fact, for the first GDPR-related court cases to surface against social tech giants Facebook and Google.

    It was as if lawyers were just waiting to pounce on them for their apparent failure to protect our rights as online users. This pertains specifically to issues relating to data privacy and the sharing of private details mainly with third-party marketers.


    How Facebook stores and shares your data has been clarified by several intense inquiries in the US and recently in Europe. This is where the law is set to benefit users of the social media platform in that geospatial area of the world.


    The said lawsuit, however, focuses on the opt-out clause that forces you to make a choice to comply or leave. The claimant is a privacy campaigner. He has made the Billion-Euro complaint on behalf of several users; seemingly a challenge to Facebook.


    Additionally, he has launched a separate suit against Google, accusing them of “pressurizing” users into accepting their data collection policies.
    This ‘comply and accept or get thrown out’ clause could leave you without your routine dose of social media consumption. Such a clause is thus deemed unfair.


    It could cost Facebook a lot if they get their way based on the terms stipulated in the new law. The social media giant could be fined up to a few billion or a sizeable fraction of their earnings in punitive damages.

    The aim of the new law

    The passing of the new regulation on May 25th, 2018, better known as the General Data Protection Regulation {GDPR} has been a long time coming.


    Despite the warnings of the “kick-in” of the regulation, many are unprepared for it. Some of the reactions to the law include confusion, anxiety by both large and small firms alike, and plain comical hysteria!


    Non-compliance now carries heavy fines and penalties, up to 20 million euros for anyone operating within the EU borders.

    So, what then, is the big fuss about GDPR?


    Well, it boils down to a right that has since the launch of the Internet to the mainstream, been waivered and overlooked. Gaining CONSENT to use your data for anything other than the reason you went public on the Internet is very crucial.


    This has become a contentious issue as many companies have over the years, unscrupulously benefited from data acquired (mined) – without your consent. Facebook only brought this into the spotlight recently.

    You can read more about data mining here

    Ad: Web, Network & App Scanner

    Who needs compliance?

    If you hold a folder, database of clients whether online or on your internal server, you would have to comply with the rules which stipulate full disclosure. This includes who you share your details with, and how the information is tracked, shared, and kept secure.


    Furthermore, research in March this year showed that only 39% of the Fortune 500 companies in the UK and 47% had GDPR compliance taskforces.


    Another UK firm commissioned study found that our buying behaviours are heavily influenced by we perceive our data is being handled by companies.

    The consent given to use your basic information cannot be taken for granted – even in the medical environment.

    German doctors’ practices, in the wake of GDPR, are manually making you sign consent forms. Doctors are now required to fully disclose who they share your contact information with.

    How to be compliant

    There are simple ways you can stay GDPR compliant. One method is to adopt an attitude of embracing it rather than just complying with it. You can be transparent with your customers by doing the following:

    Add a cookie bar to your website. You can also add a clause/paragraph to that effect (website disclaimer) in your ‘About Us’ section.


    Similarly, you must state clearly on any opt-in forms. Newsletters and any forms where their data is collected, used, and passed onto other third-parties must be announced. State clearly who they are and which data they have access to.


    You then need to give your customer the option to select what they want to share. Even if such data may not be necessary for them to receive services from you.


    Constantly review your relationships with third-party affiliates and partners to ensure that they are also complying with the law.
    They could be jeopardizing your data compliance efforts – as Cambridge Analytica did with Facebook.

    The last and most challenging step requires the action of what is promised above. This means an upgrade of your internal software to include security/encryption.

    GDPR compliant software

    You can obtain full compliance by using a GDPR-compliant package like Office 365 Enterprise E3. This package has email software specially designed for those of you dealing with sensitive client’s data that need to be kept for long periods.  Litigation hold, heavy archiving features; as well as basic email encryption are all included.


    You can add supplementary encryption software such as Azure Information Protection as an extra layer of security. This helps you to safeguard emails and stored data from being lost, compromised, or accidentally shared.


    All said and done it is likely that if you are a bigger firm, you would either need to create the position of a data security officer internally. If your lawyers are not up to date with digital laws, however, you can simply outsource the service.

    This should help make you become fully compliant thereby having to avoid issues with the data compliance authority altogether.
  • The fuss about trade disputes

    The fuss about trade disputes

    What does a small-scale farm-holding, two presidents, some tech companies, and their respective local currencies all have in common?

    The answer might be obvious if you have been paying attention to the so-called trade war between China and the US in the news lately.
    But why is it of concern and what are the far-reaching implications for the rest of the world?


    Active involvement in international trade is a vital sign of your country’s financial health and boosts its Gross Domestic Product (GDP).

    GDP measures the value of all goods and services produced in a country. From raw materials (input costs) to value-added (assembly and skilled labour costs) to come up with final goods or services.


    And though “domestic” implies that this refers to your country’s internal economy, the contributions can be extended from a services perspective.


    This occurs when your country places emphasis on or relies on income from Foreign Direct Investment (FDI) to help boost its economy via its GNP. GNP is a similar measurement but slightly different from GDP as it incorporates.

    Importance of trade

    Fact is, all our goods and services come from unit price or costs that arise from the initial extraction of raw materials.


    These then undergo production leading to the product or service of intrinsic value for both local and international (via exports) consumption.


    An ideal situation for your country is to export more than it imports to maintain a positive balance of trade. So basically more money flowing in than out.


    The trade surplus is then plowed into your economy via the fiscal budget. It can supplement a shortage of funds raised from domestic taxes.
    The opposite, which isn’t always a bad thing, (trade deficit) would have to be managed and nursed like any other loan.


    The US has often criticized Germany for exporting a lot (cars, trains, and machinery) but not importing much. This is deemed not being ‘fair’ in trade practice. But trade itself arises from market forces, priorities, and consumer demand.


    We all love a BMW, Audi, and Mercedes Benz. So these German-made products will always be in demand compared to US car makes.
    Who you chose to trade with gives rise to favourable balance of trade if you are engaged in a trade agreement or a trading bloc.


    Why this is also a big deal

    The demand for your country’s goods and services will directly impact the strength of its local currency. More trade means more of your currency is required to pay for goods and so its value goes up.


    A strong local currency leads to stronger purchasing power for its citizens and residents. Comes in handy when you plan things like holidays, purchase goods online, invest or just send cash abroad as gifts.


    So, you can see why a strong Dollar or Euro is always favoured and why sometimes drastic measures are taken to keep it that way.

    “A higher demand for your country’s products has a direct positive impact on its currency and exchange rate”

    Country Trades

    A quick glimpse of the world in terms of the input costs for goods and services gives it a competitive edge when it comes to trade.

    • US – intellectual property, services, weaponry.
    • Germany – steel and engineering machinery giving rise to high performing automobiles.
    • Many African countries – mineral resources such as oil, tobacco cocoa, and precious stones.
    • Israel – military intelligence.
    • South America – agricultural produce.
    • India – IT and customer services.
    • China – agriculture, building/(manual) labour, and of late technology.

    The beef with China

    The technology that China (no.2 on the list) offers the rest of the world is the subject of hot debate. The alleged theft of US intellectual property for tech gadgets and software by China.


    This is one of several unfair trade practises and motives for why the US recently decided to start imposing heavier (punitive) tax-like increases on multiple goods imported by China.


    These extra costs, referred to in trade terms as import tariffs, have a spill-over effect on the costs of production.


    China then reciprocated by hitting the US with tariffs (on agricultural produce) causing the trade war that drives each country to protect its own economy.


    The higher input costs naturally, lead to the price of your product going up and reducing its competitive advantage and demand. Higher input costs can also affect your local labour force for the worse too.


    Factories, multinational corporations, and industries such as farms (both commercial and subsistence) will have to cut the cost of labour. In worse cases which we have seen, workers are laid-off in a heartbeat to stop or prevent accounting losses.


    These factors would have hopefully been taken into consideration by the respective leaders before pulling the tariff triggers. Acting with emotions rather than looking at the far-reaching implications is irresponsible.


    Have the talks of the trade war impacted productivity and the global trade economy? So far it’s just the stock markets (securities and commodities) reacting. Only time will tell.

  • Data (Gold) Mining

    Data (Gold) Mining

    Let’s face it, if you really were going to quit Facebook, you would have a few years ago. Fact is, you should have asked the serious questions when the ‘free’ social media platform started turning over billions of dollars.

    No free service can generate that amount of money out of goodwill and thin air. So much that they could list on the stock exchange. So, we are not quite sure why everyone is acting amazed or why the knee-jerk #DeleteFacebook campaign is only now coming to light.


    There really is no such thing as a free lunch. If you believe that all these online social platforms would keep it that way, then you are as naive as they are hoping you to be.


    Think about it, the companies behind the platforms, actively recruit in pretty much tens and hundreds of cities globally.


    And the simple fact of the matter is that in order for them to pay all their staff of programmers, developers, executives, lawyers, and other stakeholders. They need to be paid!

    What your data means

    Facebook, Google, Twitter, Snapchat, and any social media platform that has over 100 million users sit on a goldmine for advertisers.

    The commodity, however, is not just what their users wish to own in the short term, or their purchasing power directly for that matter.

    The commodity is simply you, the user. So, your preferences, habits, and views along with their personal data are analyzed via machine-learning systems to study behaviours and habits.


    The data, in turn, is used for constant revenue maximization. In some extreme cases, it is used for political, psychological, and social manipulation!

    “Your ‘payment’ on a social media platform is your consent to have your information used for marketing purposes. Opting out of marketing would give you true ‘free use’ of the service. But no profiteering company offers you that privilege today. The best you can get is a month’s free trial.”

    Your likes, spending habits, music preferences, political views, location and working habits enables marketers to present their goods and services.


    They can position their offerings (sometimes subliminally) into spaces where you are likely to indulge in them.


    Social media platforms, in this case, become the marketplace for them to ‘mine’ data to use.

    Social network sites worldwide as of January 2018, ranked by the number of active users (in millions).
    Most famous social network sites worldwide

    Source: © Statista 2018

    How the mining works

    text-mining-icon-2793702_640


    Data mining is not a new idea and completely legal if presented transparently in the terms and conditions of any service. The terms get longer by the day (small print) that we don’t bother to read them.
    Microsoft envisioned this a decade ago and changed the way its operating systems work (with its Windows 8 series).

    Its operating systems are now more of a social, interactive, and information gathering system. Allegedly designed to “help you” organize things better.
    This is fostered by a voice-activated app called Cortana – all under one Microsoft account.


    Amazon has its own ways of data mining via your shopping habits and Alexa – is its own voice-activated search and information-providing device.
    Google (owned by Alphabet company) has the biggest stranglehold of the lot. They must, therefore, be the most cautious when it comes to data privacy and security.


    This applies especially with its partnership with Android, which makes it a requirement for you to use for all their devices to link all your data.


    These include phone contacts, emails via Gmail, pictures via GoogleDrive, apps (music, movies, etc) orders via the Google (Play)Store, and social media (Google+).


    You can even have your search fields stored and synced onto your devices – from your laptop to phone and tablet via Google.


    You are now having to give up your personal details to unknown affiliated marketers and partners of tech giants. They get first dibs on this data – and paying good money for it.

    Read more about Affiliate Marketing here

    Required by regulation

    The main violation by Facebook, therefore, might not even be non-consensus selling of data to marketers. Such things could be countered with a clause.
    They may have strategically stuck one in while you were busy posting selfies and liking random videos of cats.


    The real issue is the potential use of the data for political or advanced manipulation of data for fraudulent purposes. This can be facilitated by the use of artificial intelligence to influence you without your knowledge.

    Read more about the uses of Artificial Intelligence here

    250x250

    It is possible for you to have full data privacy and absolute freedom from advertising on social platforms. This, however, comes at a ‘cost’.

    This was reiterated recently by the COO of Facebook who admittedly confirmed that ‘opting out’ would mean you will have to pay to use Facebook in the future.
    They had just not put this in place but will now forcibly have to make it a clearly visible option.

    The fact of the matter is we are in an era of Big Data, the Internet of Things (IoT), and AI. All of these require your data to ‘operate’.

    Data mining is here to stay

    Though many were reluctant at first, pretty much every company now has a Facebook, Twitter, or Instagram page. It serves as a platform to showcase and communicate with thier clients via the newly termed phrase ‘social engagement’.

    This has turned out to become a strong branding and marketing tool for them.


    And if you think you are out of it by leaving one platform, just remember this: Facebook owns WhatsApp & Instagram; Google owns YouTube; Microsoft owns LinkedIn, and so on.


    There is, in fact, nowhere to hide if complete online privacy is important to you. And let’s not forget your web-browser: Not many of us actively use ad-blockers: but your browsing data is being scanned and processed by external third-parties companies.


    If you aren’t using a Virtual Private Network (VPN), you should seriously consider it! Along with some good plug-ins to help secure your online browsing from all types of behind the scenes snooping and ransomware.
    It will be interesting to see the outcome and verdict of the probe into the Facebook case.

    Rest assured, many other heavily used platforms will be deleting and removing ties with data mining marketers. Especially ones that have had a similar agenda to what Cambridge Analytica was accused of conducting.

    A change in the verification of marketers, data storage and data security laws (such as the new GDPR law) were long overdue. Facebook will now be the scapegoat to enforce data security laws on social media.
  • Data (Gold) Mining

    Data (Gold) Mining

    Let’s face it, if you really were going to quit Facebook, you would have a few years ago. Fact is, you should have asked the serious questions when the ‘free’ social media platform started turning over millions and even billions of dollars in revenue. No free service can generate that amount money out of goodwill and thin air – so much that they could list on the stock exchange. So, we are not quite sure why everyone is acting amazed or why the knee-jerk #DeleteFacebook campaign is only now coming to light.

    There really is no such thing as a free lunch and if you believe that all these online social platforms – who may have started off with sole intentions to provide a free service, would keep it that way, then you are as naive as they are hoping you to be. Think about it, the companies behind the platforms, actively recruit in pretty much tens and hundreds of cities globally. And the simple fact of the matter is that in order for them to pay all their (global) staff of programmers, developers, executives, lawyers and other stakeholders – they need revenue.

    Facebook, Google, Twitter, Snapchat and pretty much any social media platform that has over 100 million users, therefore, sit on a goldmine for advertisers. The commodity, however, is not just what their users wish to own in the short term, or their purchasing power directly for that matter. The commodity is simply you, the user. So, your preferences, habits and views along with their personal data are analysed via machine-learning systems to study behaviours and habits for constant revenue maximization or in some extreme cases: political, psychological and social manipulation!

    “Your ‘payment’ on a social media platform is your consent to have your information used for marketing purposes – opting out of marketing would give you true free use of the service. But no profiteering company offers that privilege today – the best you can get is a month’s free trial.”

    Knowing your likes, spending habits, music preferences, political views, personal information including location and working habits is enough for any company or institution to cater their goods and services and position them (sometimes subliminally) into spaces where you are likely to indulge in them. Social media platforms, in this case, become the marketplace for them to ‘mine’ data to use.

    Most famous social network sites worldwide as of January 2018, ranked by number of active users (in millions).

    Most famous social network sites worldwide

    Source: © Statista 2018

    text-mining-icon-2793702_640

    Data mining is not a new idea and completely legal if presented transparently in the terms and conditions of any service – which are getting longer by the day (and smaller in print) that we don’t bother to read them. In fact, Microsoft envisioned this a decade ago and changed the way its operating systems work (beginning with its Windows 8 series), to more of a social, interactive and information gathering system – designed to “help you” organize things better. This is fostered by a voice-activated app called Cortana – all under one Microsoft account.

    Amazon has its own ways of data mining via your shopping habits and Alexa – is own voice-activated search and information-providing device. Google (owned by a group called the Alphabet company) has the biggest stranglehold of the lot and must, therefore, be the most cautious when it comes to data privacy and security.

    This applies especially with its partnership with Android, which makes it a requirement to use for all their devices (phones and tablets) to link up all your data including phone contacts, emails via Gmail, pictures via GoogleDrive, apps (music, movies and games) orders via the Google (Play)Store and social media via Google+. You can even have your search fields stored and synced onto your devices – from your laptop to phone and tablet via Google.

    You are now having to (almost mandatorily) give up your telephone number, location, and other preferences indirectly to unknown affiliated marketers and partners of the tech giants who are getting first dibs on this data – and paying good money for it.

    The main violation by Facebook, therefore, might not even be non-consensus selling of data to marketers, because such things could be countered with a clause they may have strategically stuck in while you were busy posting selfies and liking random videos of cats making funny faces. The real issue is the potential use of the data for political or advanced manipulation of data for fraudulent purpose with the use of sophisticated and artificial intelligence to influence you without your knowledge.

    Read more about the uses of Artificial Intelligence here

    N26_banner-300x250-EN

    Full data privacy, though not conceivable, and absolute freedom from advertising on social platforms is possible – but at a cost. This was reiterated recently by the COO of Facebook who admittedly confirmed that opting out of the terms to have your data sold or used would lead to you having to pay to use Facebook in future. They had just not put this in place but will now forcibly have to make it a clearly visible option.

    250x250The fact of the matter is we are in an era of Big Data, Internet of Things (IoT) and AI – all which require data to analyze. These platforms are thus here to stay and still serve their specific functions well. More importantly, they’re also the livelihood for many small-to-medium-sized businesses. Though many were reluctant at first, pretty much every company now has a Facebook, Twitter or Instagram page to showcase and communicate with their clients via the newly termed phrase ‘social engagement’ – a strong branding and marketing tool.

    And if you think you are out of it by leaving one platform, just remember this: Facebook owns WhatsApp & Instagram; Google owns YouTube; Microsoft owns LinkedIn and so on – there is nowhere to hide if complete online privacy is important to you. And let’s not forget your web-browser – not many people actively use ad-blockers unaware that even their browsing data is being scanned and processed always by external third-parties companies.

    If you aren’t using a Virtual Private Network (VPN), you should seriously consider it along with some good (some free) plug-ins to help secure your online browsing from all types of behind the scenes snooping and ransomware.

    It will be interesting to see the outcome and verdict of the probe into the Facebook case and rest assured, many other heavily used platforms will be deleting and removing ties with data mining marketers that have had a similar agenda to what Cambridge Analytica was accused of conducting.

    A change in verification of marketers, data storage, management and data security laws (such as the new GDPR law targeting businesses coming in May 2018 to the EU region) were long overdue, and Facebook will now be the scapegoat to enforce data security laws on social media.

  • Piggybacking on company success

    Piggybacking on company success

    After having several conversations which clearly highlight the fact that the business of share trading and its intricacies still create a dark cloud to many, and an unnecessary element of sophistication at that, it is only fair to (in true debunqed.com fashion) take a step back, delve in and break it down by discussing not just the way to trade – but the whole point of it. It can seem like something only smart people engage in. This is, however, not the case.

    The first thing to understand is that shares (referred to in the US as stocks) entitle the holder to have part ownership in a company. So, if you own a share in, Amazon, Deutsche Bank, Coca-Cola, Manchester United or a Cryptocurrency company like Ripple – you OWN a part of the company. You are basically co-owning with other stakeholders of the company with the hopes that the people who run it will increase the monetary value of your shareholding by making the company a success.

    Now your share/ownership will determine what level of control (decision-making powers) you have when it comes to the company’s operations. Naturally, owning just 10 or even 1000 shares of Amazon (which cost around a hefty $1400 each today), still does not entitle the owner to have a say in how it is run. The majority shareholder – which would probably be the company owner (chairman/founder) or its board of directors, depending on how the company is structured, will still have the overall say.

    To gain a majority shareholding and therefore full control of a company, the minimum number of shares one would need would be 51% of the total issued…good luck obtaining that many!

    But let’s take a further step back and unravel why shares are issued in the first place. A company has a value and within that context will always keep tags on the capitalistic market and carefully monitors its value to brace for a potential takeover or a consideration to sell.

    So, to get listed on a stock exchange a company will decide how much of its equity to publically issue as shares and might even use it to raise more capital to help grow the business.

    This form of equity will be backed against its total assets (and its debts) on its balance sheet. So hypothetically, a company with 100 Euros worth of assets and liabilities has 100 Euros worth of (owners) equity – which basically enables one to determine its worth at a given point in time.

    The easiest way to remember this is through this basic accountant’s formula:

    Total Owners Equity (OE) = Assets (A) + liabilities (L).

    The shares are accounted for in the OE and are issued in denominations based on various factors to provide an indication of the relative strength (or weakness), or potential growth of the company. The (snapshot) total value of the company is thus determined by its share price plus number issued and referred to as its market capitalization. There are several other measures and tools to evaluate the general health of a company.

    Rising shares, though always good will not always necessarily mean the company is great value for money as share prices can also be under- or overvalued. Shares for large companies are naturally offered in millions and via an initial public offering (IPO) from as little as one cent or more (depending on its valuation upon listing on the market) and rise to what was quoted for Amazon earlier – which along with the price of certain commodities are one of the highest per share currently available in the open market.

    The open market of local bourse is where shares can be bought and sold at specific times depending on side of the world it is located – just like in a traditional marketplace.

    Obtaining shares may come with an additional cost (brokerage fees, commission, interest payments in cases of leverage buying etc.) depending on the terms and conditions of the market but more specifically, on the company or broker offering access to the shares.

    39373_160x600

    A good company share will also offer its holders in return an annual dividend – which is basically a share of the company’s profits over and above the share price. So, it is a good idea to include dividend-yielding shares in your trading portfolio if you can afford them.

    Once you purchase your stake in the company, you will naturally, even if you don’t have a controlling say in how the company is operated, take a keen interest in the company’s activities as everything it does within its operations or outside ops for that matter will have an impact on its valuation, and therefore, the price of the share you own.

    Naturally, investors follow the age-long rule of common sense and buy when the price is low. If you missed the IPO and dip in, the price is always a good time to even top-up for the long and eventual rise.

    “Unless a company goes belly-up, a share-stock price that is going down is actually going up – in the long run.”

    But the price as we know does not always go up and one must be prepared to weather such storms by not continuously focusing on the shares once you have done your due-diligence and purchased for the long haul. Playing blissful ignorance is the best advice you will get as one can become emotionally attached to the performance of the shares and have it affect your mood.

    There are also a lot of trading tools to help prevent a total meltdown if the company folds-up due to external factors such as fraudulent scandals or government intervention – so keeping tags now and then is still required. The recent events and scandal faced by Facebook saw it lose a significant amount (billions of dollars within weeks) in it the value of its share price.

    Read more about investing here.

    There are also ways to “have ones’ bread buttered both ways” and this is where the concept of short-selling comes in. So, while we all would bet on a company’s stock to go up – there are groups of investors who bet the other way with the hopes that the price will rather drop.

    This seemingly dubious form of trading is perfectly legit and comes, naturally, with a higher level of risk – that is if the price increases in favour of all ‘normal’ long-term investors – the short starts to lose money and will even have to fork out more for the amount borrowed to make the short-sell in the first place – not for the inexperienced and ill-informed!

    So, you “buy” or rather borrow (with leverage) the future value of the share/stock price usually at its apparent peak (or bubble bursting price level) and hope that it will drop for you to profit from the bet by as much as it continues to drop. Earlier in the year, one such investor dubbed “50 Cent” bagged 200-million-dollars in a major shorting maneuver.

    Shorting a stock is a complex, risky but highly lucrative method of balancing out a portfolio. A seasoned trader will, therefore, have several positions including some “buy” and “sell” positions on their shares for long and short terms with the various mechanisms set in place to execute their trades based on those positions.

    One wouldn’t just short a stock if one didn’t know something about what was to come or what factors were to lead to a sharp and large drop in the share price. But getting this right is often an exercise that straddles a fine line between being well-informed and intuitive and blatant insider trading.

    So, in summary, shareholding happens naturally when you acquire a stake in a business through ownership of its intellectual capital, founding rights, or status as a funder or initial investor to help start the business.

    So why do companies issue out shares to the public again you might still ask… think of share listing as a way for a company to hold itself publicly accountable and thus is the ultimate branding weaponry in its arsenal and quest to exponentially increase its profits.

  • Piggybacking on company shares

    Piggybacking on company shares

    It is clear that the business of share trading and its intricacies still create a dark cloud for many of you. This is, however, a rather unnecessary element of sophistication.

    It is only fair to, therefore, delve in and break it down by discussing not just the way to trade, but the whole point of it.

    While trading may seem like something only smart people engage in, this is, however, not the case.

    What are shares?

    The first thing to understand is that shares (referred to as stocks) entitle the holder to have part ownership in a company.

    So, if you own a share in, Amazon, Manchester United, or a Cryptocurrency company like Ripple – you literally OWN a part of that company.

    You are basically co-owning with other stakeholders of the company. This with the hopes that the people who run it will increase the monetary value of your shareholding by making the company a success.

    Now your share will determine what level of control (decision-making) you have when it comes to the company’s operations.

    Naturally, owning just one, ten, or even 1000 shares of Amazon (a hefty $1400 each today), still does not entitle you to have a say in how it is run.

    As the majority shareholder, you would probably be the company owner (chairman/founder) or one of its board of directors. To gain such a majority shareholding and full control of a company, the minimum number of shares you would need would be 51% of all shares issued. Good luck obtaining that many!

    The rationale for issuing shares

    But let’s take a further step back and unravel why shares are issued in the first place. Your company (hopefully) has value because of its ability to generate revenue. This makes it a constant target for investors in a capitalistic market.  Wealthy individuals carefully monitor its value to brace for a potential takeover or for just a piece of the pie.

    To get listed on a stock exchange your company will decide how much of its equity to publicly issue as shares. You can even issue shares to raise more capital to help grow your business.

    This form of equity will be backed against your total assets (and its debts) on the balance sheet. So hypothetically, a company with 100 Euros worth of assets and liabilities has 100 Euros worth of (owners) equity.

    This basically enables you to determine its net worth at a given point in time.

    The easiest way to remember this is through this basic accountant’s formula:

    Total Owner’s Equity (OE) = Assets (A) + liabilities (L).

    The shares are accounted for in the OE and are issued in denominations based on various factors. This helps to provide you with an indication of the relative strength (or weakness), or potential growth rate of the company.

    What do they tell us?

    The (snapshot) total value of the company is thus determined by its share price multiplied by total number issued. This is referred to as its market capitalization. There are several other measures and tools to evaluate the general health of a company.

    Rising share prices, though always good, does not always necessarily mean that the company is great value for money. This is because share prices can also be undervalued or overvalued.

    Shares for large companies are naturally offered in millions and via an initial public offering (IPO) from as little as one cent (penny stock), or much more (depending on its valuation). Thereon, it can rise astronomically to what was quoted for Amazon earlier.

    Where to get them

    The open market or local bourse is where you can buy and sell shares at specific times depending on side of the world it is located.

    Obtaining shares come with additional costs (brokerage fees, commission, interest payments in cases of leverage buying, etc.). Depending on the terms and conditions in the overall market (regulations), but more specifically, on the company or broker offering you access to shares.

    A good company share will also give you a return on an annual dividend. This is basically a share of the company’s profits over and above its share price.

    It is a good idea to include high dividend-yielding shares like Coca-Cola, in your trading portfolio – if you can afford them.

    Influencers

    Once you purchase your stake in the company, you will naturally, even if you don’t have a controlling say in how the company is operated, take a keen interest in the company’s activities.

    Everything it does whether internal operations or outside for that matter, will have an impact on its valuation.

    Naturally, investors follow the age-long rule of common sense: buy when the price is low. If you missed the IPO and the price dips, you can always get in at a good (low) price. The stock market runs like a rollercoaster – you just need the right time to hop on!

    “Unless a company goes belly-up, a share-stock price that is going down is actually going up – in the long run.”

    Obviously, the price (trend) is not always upward and one must be prepared to weather such storms. You shouldn’t have to be continuously focusing on the price after thorough due diligence on your chosen company.

    Read more about Due Diligence here

    Choosing a good stock and leaving it to work is the best advice you will get. This is because you can become emotionally attached to the performance of the shares and that can affect your mood.

    There are also a lot of trading tools to help prevent a total meltdown if the company folds-up. This can be due to external factors like fraudulent scandals or government intervention. Keep tags now and then – this is important.

    The recent events and scandal faced by Facebook saw it lose a significant amount (billions of dollars) in it the value of its share price.

    Read more about investing here.

    Short-selling of shares/stocks

    There are also ways to “have your bread buttered both ways” in investing. This is where the concept of short-selling comes in.

    So, while we all inclined to bet on a company’s stock to go up – there are groups of investors who bet the other way. They have the hopes (based on indicators) that the price will rather drop.

    This seemingly dubious form of trading is perfectly legit but comes, naturally, with an even higher level of risk. If the price increases in favour of all ‘normal’ long-term investors – the short position starts losing money. You may even have to fork out more to cover the amount borrowed to make the short-sell in the first place.

    Short-selling is, therefore, if you are inexperienced and ill-informed!

    So, you “buy” or rather borrow (leverage) the future value of the share/stock price usually at its apparent peak and hope that it will drop. You will continue to profit from the bet by as much as the share price continues to drop.

    Earlier in the year, one such investor dubbed “50 Cent” bagged 200-million-dollars in a major shorting stint.

    Shorting a stock is a complex, risky but highly lucrative method of balancing out a portfolio. A seasoned trader will, therefore, have several positions including some “buy” and “sell” positions on their chosen shares.

    You should have various mechanisms (take profits and stop losses) set in place to execute their trades based on those positions.

    Naturally, you wouldn’t just short a stock if you didn’t know something about what factors were to lead to a sharp/large drop in the share price.

    But getting this right is often an exercise that straddles a fine line between being well-informed and intuitive and blatant insider trading.

    The bigger picture

    So, in summary, shareholding generally occurs when you acquire a stake in a business. You can own intellectual capital, founding rights, or be s a funder/seed investor to help start the business.

    So why do companies issue out shares to the public again you might still ask?

    Think of share listing as a way for your company to hold itself publicly accountable. is the ultimate branding weaponry in its arsenal and quest to exponentially increase its profits.

  • Conjecture buying

    Conjecture buying

    Before throwing our coins out of the pot or making second guesses about a big crash one must understand how the price of altcoins works.

    The price of some altcoins on the trading market has a lot less to do with its intrinsic value. It is actually what individuals, and most traders (who seek only profit), believe it to be worth.


    So, what is the reason behind the recent downward price spiral? Not much conspiracy to “ruin the cryptocurrency” other than an expected price correction coupled with some external factors.


    Punters including ‘corner shop’ setups inflated the price with rampant price speculation. Speculation based on nothing more than historic (and a short history) rise of the price of the coin from only a few cents to almost $65 000 each (adjusted to 2021 all-time-high price).


    The idea of creating an invention that performs a certain function quite soundly and then limiting its supply displays the financial clout of its creator/s.


    That way, the natural laws of supply and demand would drive up the price of Bitcoin, as it became rarer though needed. It is already becoming harder to attain (through mining) and as it encroaches its supposed 21-million-unit limit.

    “The fact that people keep talking today that bitcoin is below 10,000, it’s a disaster, or bitcoin is above 10,000 and that’s crazy. I think the fact that bitcoin is still alive, and attracting so much attention, is the fact that we’re talking about bitcoin in Davos with a Nobel Prize winner, a central bank governor, and a seasoned investor. I think that’s a powerful tool.” – Jennifer Zhu Scott (Radian Partners principal) – 2018.

     

    External influencers of price

    But there are external factors that come into play that affected its speculative price. Factors such as the rise of other altcoins after the split in its technology.


    Bear in mind that the blockchain code is open to anyone smart enough to develop and run a product on it.
    So, there is also some kind of a substitution effect as newer altcoins become more specific in purpose and faster in executing transactions.


    This results in people switching from Bitcoin to the likes of Ethereum-run newcomers like DigixDAO.
    These new coins are doing well (if the rising price is an indicator) and climbing while others lose both intrinsic a speculative value.


    External factors including market sentiments do in fact play a huge role in determining the demand for the product or service. In the case of Bitcoin, the closing down of some Exchanges in Asia as well as talks of heavier regulation. Such was mentioned at the World Economic Forum in Davos 2018.


    Global leaders pledging to take tougher measures to regulate cryptocurrencies raises cause for concern for people with significant amounts invested.


    So, the usage by criminals, for instance, has created a much-expected reluctance by governments and financial institutions to accept its legitimacy.
    There is also a constant and sometimes subliminal shift in thinking, as trading involves a lot of psychological and emotional play on buying behavior.

    Buyer behaviour

    One such example is the impulse people have when purchasing items that are supposedly on ‘special’ or at a low price.
    A 75% discount on a pair of shoes only tells you that the seller has marked it up so high that they could still make a profit when they knock it down by that much!


    You only notices the price (before and after) the discount. This is without realising that it cost the buyer a fraction of both to produce, package it and get it shipped to the store.

    The true value of ‘the shoe’ lies in the materials (quality) used to produce it for it to last long or give it its level of comfort (its true purpose). That and its appearance of course.


    The “brand name and image” in this case can thus be compared to the speculative aspect of a commodity.
    So, a pair of pumps would sell (at a higher than normal price) if the likes of Beyoncé or Gal Gadot are seen wearing them.
    The same goes for sportspeople and the whole multi-million dollar/euro endorsement deals they carry. Their endorsement of a product thus ‘legitimizes’ it.


    When global leaders, banks, and financial institutions raise concerns about cryptocurrency – it does the very opposite. This sets off-market panic and the selling-off we are currently observing.

    The future of Crypto

    120x600

    So, what will happen from here on? Provided it is not outright outlawed. This is, however, proving to be difficult as even the South Korean government have now softened their tough stance on the Crypto Exchanges.
    This is after they discovered what a tax ‘gold mine’ Crypto exchanges can be. This is then when the speculative buying will begin again.


    Investors who couldn’t purchase Bitcoins at levels above $20 000 will now be seeking an opportunity to enter the market.


    Especially if it dips below the $30000 mark (it is currently $34 000). This with the hope to make some decent profit even if it just pushes back to $50 000.
    Some will hold on and speculate on a return to previous highs – and so the bullish and bearish cycle continues.


    Authorities including the delegates at the Davos talks were in agreement, however, that they will want it at affordable prices. At a level that stays relatively stable, they may even start to consider it as ‘global legal tender’.


    But that will be a long time, especially if traders continue to buy it speculatively to make profits.
    Those awaiting a total crash of Bitcoin, altcoins, or the blockchain, however, would have to hold their breaths.


    The technology is indeed a game-changer and has already been widely adopted. It will only change form to be partially or fully regulated.

    The core functions of blockchain-based currency will remain its main contribution to the evolution of banking and ‘money’ transfers.
  • One tool to serve them all

    One tool to serve them all

    When working in retail, finance, and manufacturing (sales) industry, you often come across one unavoidable piece of software.

    A Customer Relationship Management software or what is abbreviated to CRM.

    Now what really is really astonishing is when people ask how a CRM can actually help their business. Often one gets asked what CRM stands for or even means!
    Now granted, it is a technical and industry-specific jargon depicting an online tool. More specifically, it is software used on hardware like PCs, tablets, scanners, point-of-sale devices, and modern cash registers).
    What it does, however, is something many businesses both small and large take for granted – and mostly to their detriment.

    The purpose

    We use CRM solutions a lot more than we think. Take our Smartphones for instance: they are basically miniature customer (data or content) managing tools and though personalized, they serve the same function.
    Now to put this into perspective very quickly and simply: our phones store and manage all our contacts. Our friends, family, businesses, and clients are kept in records primarily to help us access and communicate with them quickly.
    Mobile phones, have also evolved to now enable you to not only manage your contacts to just make calls or send SMS. You can now share all sorts of  content with via the various social media platforms.
    Each of these platforms naturally has its own purpose and account. Android phones, for instance, come with (need to be activated by) a Google account.
    You can then subsequently use it to access many applications (via an app store) and not just your email.
    CRMs manage a company’s accounts in a similar way. They enable you to quickly get a hold of people to either sell directly to, create or follow-up on a sales lead, or nurture the lead until it becomes a sale.
    This is carried out by software that sits on the front-end of a database stored on a local server or on the cloud. The software is normally user-friendly for it to be adopted and used frequently by end users.
    This enhances your productivity and therefore increases  revenue for your business.

    Practical uses of CRM

    They are used more by salespeople and staff of companies that offer a service via their customer support services or front-end teams.
    So, when you call your local phone company because you are behind on a payment or would like to hand in a product for repairs, it is a CRM system that is used to log, track and manage the case till is solved.
    The transcript, along with the call logs and resolutions are kept for a later date or time for if you make a follow-up call, request a new service. These records are stored in a database or what is called an instance.
    Depending on what your company does, it will have several (national or regional) instances to help access data even faster.
    A CRM can help you manage a healthy relationship with your clients to ensure that you are not calling them several times a day to put them off.
    It will stop you from forgetting to follow-up on scheduled calls or emails or worse yet, sending them the wrong product or information about your offerings.

    Salient features

    A good CRM package also comes equipped with a means for you to create and store brochures, create effective and targeted marketing campaigns, generate quotes and invoices (PDFs). It will also come with a solid built-in knowledgebase.
    This is a stored pool of resources containing processes and scenarios to help you quickly resolve a problem, prescribe a product or log a case.
    And nowadays, like a mobile phone, a good CRM software can seamlessly help you integrate with social media platforms to follow, service or attract customers from those digital marketplaces.

    Several CRM tools out there that offer different functionalities and depending on the size of your business, you can get a basic one that just manages your contacts and interactions.
    Then you have ones that handle full-scale operations (back-office processes like warehousing, inventory, accounting, finance, payroll, and HR).
    Those fall under another high-level category of CRMs known as Enterprise Resource Planning tools or ERPs. A topic for another blog perhaps as they are a totally different animal altogether.
    CRMs are however, an component of ERPs and bigger companies would need both to handle large scale operations.
    So you see how useful a CRM is in helping to run your company. They are now being even more automated with the help of Business Intelligence and AI.
    That makes it even easier for you to use them to grow your business to levels where ERPs you would eventually need an ERP.

    Many CRM suppliers offer free trials and even free online software, so take a shop around to see which one fits your needs.
    The current industry leaders in CRM solutions are Dynamics (Microsoft), Salesforce, Oracle, SAP CRM and Zoho.
  • Sales misconception – debunqed!

    Sales misconception – debunqed!

    The ‘great’ art of selling is about earning and keeping your client’s trust. In business or commerce, there is nothing greater than the feeling of completing that successful sale.

    By successful, we refer the whole process: from convincing the customer that your product or service will meet his/her long or short-term needs. This is after listening carefully to their requirements through thorough discovery.  The client is then able to the payment without hassles and take timely delivery of the goods.
    Finally, the customer acknowledging and thanking you for it with the hopes of coming back should be the most rewarding part of the sale. That coupled with your commission of course!
    A successful sale is a step-by-step process and must have all the above elements.
    Anything short of that is paramount to a quick-fix or even a scam. It is only lazy salespeople (taking shortcuts) that give the trade a bad reputation.
    Granted, not all of your sales interactions will turn out to be complete success. Some elements of the above process could be stymied by aspects out of your control.  For instance, the client’s lack of funds, suppliers’ delivery delays or a faulty product can mess up a good sales cycle.

    A true story

    Some of the most successful sales are even conducted by faceless agents. Once, while based in Johannesburg, we sold a product (that was mass produced in China) and had it delivered from New York to Cape Town via air-freight.
    This was based on a demand (order) that was placed on a then operational website. The actual sales were brokered via correspondence by email and phone.
    Luckily, the product (and delivery) quality was good enough not to warrant a face-to-face visit, though in those days having Skype for Business would have been a great resource to at least give ‘a face’ to the sales rep.
    They were, however, willing to deal with the agent several times without having met them personally based on the quality of the (medical) product. This was in addition to the vote of confidence and guarantees provided throughout the intensive sales interactions.
    This little anecdote proves that it doesn’t matter what you sell, if the product is of good quality, and meets all (compliance) requirements including the recent GDPR law – the sale actually becomes the easy part.
    You will, however, still require a little bit (and the right kind) of presentation skills to position the product/service adequately enough to execute the sale.

    There is no real art to selling – we all do it all the time without realizing it. From the time we apply to a kindergarten or high school, to university and finally to all the jobs in our working career.

    Reinforce the brand

    As salespeople, we must present ourselves (our unique skills and character) and persuade a ‘buyer’ to take us on. This is also something no automated sales agent or Chatbot can do and is an area that Artificial Intelligence (AI) will not beat us on.
    And just like a brand, everything we do is intended to enhance our value and the more we beef-up our brand (with educational, mentorship and technical qualifications). The better our brand, the more demand for your offering.
    250x250But back to selling. We sell people ideas: something as simple as convincing your mate to meet at the pub after work or your girls to join you for a weekend spa takes skilful persuasion. And even more so if they had other plans or options.
    That is essentially what sales is about – persuading a buyer to choose your product or service over that of others using tools such as the consumer black box.
    Such persuasion obviously can be genuine or fraudulent. Those salespeople trained by their leader Jordan Belfort as illustrated in the 2013 Wolf of Wall Street movie are a testimony. The revealed how persuasion can be used effectively when capitalizing on with an inherent human trade – greed.
    Being truthful, however, (even if it means letting go of a sale) will determine whether you get repeat customers. This is something most successful salespeople make use of to boost their conversion rates and pipelines.

    Mentorship

    Debunqed.com likes to follow unconventional salespeople who use unorthodox but effective methods.  These are not necessarily the textbook style of selling but will help to inspire you to address the potential client’s needs honestly.
    Such ‘on the ground’ learning is done with the help of a mentor. Shadowing one or two mentors that are passionate about what they do can rub off a few skills that can supplement traditional sales theory.
    Sales is a skill best learned on the ground and you will hardly find an institution offering it as an elective course.
    Such revenue-multiplying potential that repeat-customers can provide for your sales portfolio or pipeline beats getting a quick-fix by conning people no matter how big the ‘score’ is.
    What you should be doing as a salesman is gaining your customers’ trust whilst solving their problem.
    A trusting customer will always look you up for more purchases.

    If you operate in an industry where you have multiple products or one that needs to be renewed – you earn revenue for life!
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