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Subject: crowdsourcing

Crowdsourcing is a neologistic compound of Crowd and a short for Outsourcing, for the act of taking tasks traditionally performed by an employee or contractor, and outsourcing them to a group of people or community, through an “open call” to a large group of people (a crowd) asking for contributions.
For example, the public may be invited to develop a new technology, carry out a design task (also known as community-based design and distributed participatory design), refine or carry out the steps of an algorithm (see Human-based computation), or help capture, systematize or analyze large amounts of data (see also citizen science).
The term has become popular with businesses, authors, and journalists as shorthand for the trend of leveraging the mass collaboration enabled by Web 2.0 technologies to achieve business goals. However, both the term and its underlying business models have attracted controversy and criticisms. (Wikipedia Jan 2010)

With respect to finance, crowdsourcing may be used in collaborative investment research.

The inefficient market

Free information has a time cost

Is Neuberger Berman

The Crash of 2008 showed that the Efficient Market Hypothesis was fantasy. Although there is a huge amount of free information about investments available on the Internet, this takes time to extract and understand and time has a cost.

With too much free information, the law of diminishing returns kicks in. Critical information passes unnoticed.

Technologies are now available that allow us to take advantage of free information more effectively.

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Featured articles on inside pages

Stock buybacks

Accelerating to a buyback-option blowout

By Q1 2006, stock buybacks had multiplied to five times the level of 2000. Buybacks grew by 25% in 2005, with corporate profits after taxes increasing only 5.5%. At these rates, buybacks will exceed after-tax profits by 2009.
More ...

Securities Analysis

Does ‘SEC Total Return’ protect investors?

Millions of investors put money for retirement into mutual funds selected on the basis of "SEC total returns" and the name of the fund. This article explains how the SEC allows funds to use this misleading statistic to the detriment of investors and to the benefit of fund managers. More ...

US Politics

What is the future of private pension plans?

Between 1999 and 2002, US private pension funds lost US$ 1.2 trillion in value. It would almost seem that pension fund managers had been speculating with retirement money, attempting to beat each others' short-term performance statistics, with little interest in safeguarding the assets of plan beneficiaries. More ...

US equities

Do stocks offer protection against inflation?

There is a common belief that a managed, diversified portfolio of US common stocks provides protection against inflation. However, there is reason to question whether this protection currently exists.
More ...

US Bonds

Bond demand exceeds supply for a decade

Over the decade, 1995-2004, the demand for US bonds of all types has surpassed new bond issues in eight of the last ten years. This is the reason that bond prices have held firm, even in 2003, when net new issues reached almost $1.8 trillion. More ...

World Economy

Working off the US trade deficit

Foreigners hold $16.8 trillion in US financial assets as a result of selling more goods to Americans than they buy from them. Since the 'deficit' is in dollars, the US has no problem in 'paying it off'. More ...

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