UNews - Shamsul Alam

The top six things to know before you invest in cryptocurrencies

trevor.kenney — Tue, 17 Jul 2018 21:35:03 +0000

The proliferation of cryptocurrencies started with the creation of Bitcoin in 2009. The popular (and sometimes infamous) currency continues to operate in a grey area when it comes to Canadian laws and regulations. At this point, can potential backers ignore cryptocurrencies, or should they dive in and invest?

In a recent episode of Navigator’s Banking on Blockchain series, The Wild West of Blockchain, Dr. Shamsul Alam, associate dean and finance professor at the ��Ѹ��Դ��߿�Ƭ of Lethbridge’s Dhillon School of Business, says that unlike our Canadian dollar, which is a legal tender, bitcoins and other cryptocurrencies are essentially virtual money and not backed by the Bank of Canada. But that doesn’t mean they should be ignored.

“Everyday, cryptocurrencies are popping up like mushrooms,” says Alam. “But they’re here to stay. They will transform the way we do business and the economy.”

The episode also featured Zach Masum, manager of Legal Services (Capital Markets Regulation) with the B.C. Securities Commission. According to him, investors need to do their due diligence before making the leap to invest.

Here are a few things to keep in mind:

1. Understand exactly what you’re purchasing

When cryptocurrencies or crypto-assets are being offered, they’re accompanied by white papers ranging anywhere from two pages to 40 pages. These white papers provide details on why a perspective investor should invest in a company’s particular currency or asset; all the services the company offers that relate to the currency or asset; the problems that will be solved by the product; the team behind the currency and their mission or goals; how the currency or asset is transferred to the investor and/or used by network users; and any other technical or financial details about the product. Investors should read these white papers carefully to ensure they understand what they’re investing in or purchasing.

2. Know where the cryptocurrency originates from

If the currency you want to buy or invest in is part of an Initial Coin Offering (ICO), which means that it’s a relatively new cryptocurrency venture, find out where the company that is offering it is based. Investors should be aware of where the assets is coming from—whether foreign or domestic – in case issues like fraud arise in the future. Companies located in a foreign jurisdiction or who do not disclose their place of operation could be harder for investors to deal with down the road should any problems arise with your investment.

3. Investigate the legitimacy of the cryptocurrency company

In 2017, The United States’ Securities and Exchange Commission’s new cyber unit filed charges against a Quebec cryptocurrency company—the first charges they have ever laid— for scamming backers out of their investments.

Ensure you examine the credential of the company and its team who are offering the currency or asset. There can be varying degrees of legitimacy to companies or teams and fraud has occurred in the past where representatives from companies are not who they say they are.

4. Know that crypto-assets or currencies are volatile

Simply put, what goes up can also go down. Bitcoin reached its highest value in December of 2017. The currency was initially trading as if it were a penny stock, then surged to over $19,000 USD in 2017 and shortly after dropped to one third of that price in January. It has also had many other ups and downs in its history. Like other commodities, purchasers need to consider the volatility of cryptocurrencies and be prepared to deal with both its rises and falls.

5. Understand the laws that are in place to protect you

There are consumer protection laws at the federal level and in different provinces in Canada. Investors or buyers of cryptocurrencies or crypto-assets should look into these laws that could apply to their purchase if they run into any issues.

6. Be able to recognize the warning signs of fraud

From pressure tactics to “exclusive” offerings, there are warning signs that a purchaser should know about before they invest in or purchase a cryptocurrency or crypto-asset. The B.C. Securities Commission goes into detail on what those warning signs of fraud may look like, as well as other investment tips.

This article is based off of the podcast episode “The Wild West of Blockchain”, part of Navigator’s “Banking on Blockchain” series. If you want to hear the whole podcast in its entirety, you can listen in here.

_{“The above material references an opinion designed to enhance public understanding on the investment in crypto currencies and the issues that affect it. This material is intended to provide general information only and is not intended to provide investment advice, legal advice or tax advice, or to answer specific questions about your investments. You should consult your own duly licences professional advisors if you require such advice or answers. While every effort has been taken to ensure the accuracy of this material the accuracy or completeness of the material cannot be guaranteed. Any information or materials which are provided or maintained by a third party such as linked sites which may be accessed throughout this material are provided “as is” and are not subject to any guarantee as to accuracy, completeness or currency. Any liability for losses or damages, whether direct, indirect, specific or consequential incurred by any user of this material and whether by contract, negligence or otherwise is specifically disclaimed."}

Faculty launches minor in Agricultural Enterprise Management

trevor.kenney — Fri, 04 Nov 2016 21:28:02 +0000

This fall, the first cohort of students enrolled in the Faculty of Management’s minor in Agricultural Enterprise Management, thanks to a $5-million donation from local agricultural entrepreneur Cor Van Raay.

Dr. Shamsul Alam, professor of finance, associate dean in the Faculty of Management and director of management graduate programs, says the new program is designed to fill a gap in post-secondary education - the vision Van Raay set out with his donation.

In planning the program, the Faculty of Management consulted with stakeholders in the agricultural community, including producers, business owners and professionals in the industry.

“We are offering a minor right now but are in the process of developing a major in collaboration with Lethbridge College and the Faculty of Arts & Science.”

The six-course minor will proceed at the same time as planning is underway to develop streams where students will be able to earn several credentials in Agricultural Enterprise Management.

“We are developing a pathway for the students through which they can earn a certificate, a diploma and a degree,” says Alam.

In planning the program, the Faculty of Management consulted with stakeholders in the agricultural community, including producers, business owners and professionals in the industry. From there, the core competencies of the program and its objectives were developed. Students will gain expertise in policy regulations, operations, financing and marketing, and demonstrate skills in analyzing and interpreting the market environment, creating and implementing a human resource strategy and complying with agricultural regulatory requirements.

“We’ll be dealing with the downstream side of the agriculture sector. That includes managing primary production in terms of marketing, finance and risk management,” says Alam, adding students don’t have to have experience in agriculture to enter the program. “They will develop an understanding of the needs of the producers and marketers, and the market environment.”

Students are currently taking an introductory course in agricultural enterprise management and three more courses will be offered in the spring. Other course offerings include agriculture marketing and sales, agricultural finance and market, visual analytics, small business, entrepreneurship, supply chain management, issues in agriculture and business, Canadian and world agriculture, and managing responsibly in agriculture. Overall, students can choose from 10 courses to fulfil requirements in the minor.

Alam says special care was taken not to duplicate agricultural programs at other universities in Canada. Given the southern Alberta economy is based on agriculture and energy and prices can be volatile, risk management is essential, he adds. An asset for the program is the Faculty’s Centre for Financial Market Research and Teaching, also known as the Trading Room, which is equipped with the necessary software and platforms for students to learn about markets, from their structures and principles to pricing.

“We’ll be educating students how to apply those instruments so we can manage the risk,” says Alam. “We are also pursuing to hire a Chair in commodity risk management.”

Alam expects the degree program in Agricultural Enterprise Management will be ready to accept students in the fall of 2018.

More information on the Agriculture Enterprise Management Minor can be found here.

U of L first Canadian site to host ��Ѹ��Դ��߿�Ƭ Trading Challenge

caroline.zentner — Wed, 02 Sep 2015 17:38:56 +0000

Following the success of the ��Ѹ��Դ��߿�Ƭ of Lethbridge’s Faculty of Management team at the ��Ѹ��Դ��߿�Ƭ Trading Challenge (UTC) in New York City last November, the U of L has been chosen as the location for the first UTC to be held in Canada this November.

“We are proud to host the first ever UTC in Canada and we encourage any interested teams to register for the competition. Lethbridge is an ideal location for university teams from across western Canada and the United States,” says Dr. Shamsul Alam, a Faculty of Management professor and the U of L team supervisor.

Last year’s U of L team, consisting of Devin Phalen, Ashley Tymburski, Matthew Helfrich and Michael Kawchuk, competed against a dozen universities and earned first place in the real-time trading part of the competition and second place overall. Alam says the team’s success reflects on the education and training the students receive at the U of L, including experience in the Centre for Financial Market Research & Teaching, or trading room.

Now, the U of L will be providing the same kind of competition experience to student teams when they arrive on campus on Nov. 20. The UTC, now in its fifth year, has previously only been held in London or New York.

“This competition gives students a unique opportunity to test their financial skills in a real-world setting and having participated in a trading challenge will impress potential employers,” says Alam.

The 2015 UTC includes a month-long portfolio management precursor with one full day of live competition in the trading room. In addition, students will hear from a guest speaker.

The challenge, open to full-time students in finance, economics and allied programs, gives teams the chance to participate in a trading challenge, a portfolio challenge, an investment banking challenge and a case competition.

Interested students are encouraged to form a team and use the online registration form for the UTC. An early bird registration discount is available until Oct. 1.

Industry sponsorship is still available; contact Clayton Varjassy or call 403-332-4121 for more information.

��Ѹ��Դ��߿�Ƭ of Lethbridge team brings home hardware in North American finance competition

caroline.zentner — Mon, 24 Nov 2014 23:15:31 +0000

Coaching sessions and simulated trading exercises helped a student team from the Faculty of Management place second overall at the recent 2014 ��Ѹ��Դ��߿�Ƭ Trading Challenge in New York City.

The U of L team, consisting of Matthew Helfrich, Devin Phalen, Michael Kawchuk and Ashley Tymburski, were among 80 students from 12 universities to participate in the North American trading competition that started Oct. 13 and finished in New York City on Nov. 14. They were accompanied by Dr. Shamsul Alam, a finance professor and team coach, and Lynda Thai-Baird, manager of the Centre for Financial Market Research and Teaching facility known as the trading floor.

This is the first year the U of L has participated in the contest. To finish two points behind the first-place finisher, Fordham ��Ѹ��Դ��߿�Ƭ, was a big achievement considering the U of L was the only Canadian team and the only undergraduate team to compete.

“It was definitely exciting to place with all those top schools,” says Tymburski.

“I was pretty excited. The team we lost out to is pretty accomplished, so I don’t feel bad losing to them,” says Helfrich.

“They did a fantastic job,” says Alam. “I’m very pleased we came second against all the graduate students. The U of L trading room helped them learn how to trade and the competition was in a trading room like ours, so they were confident when they went into it. I’m very proud of them.”

In the three weeks leading up to competition in New York, individuals from each team participated in a real-time market trading exercise based on daily news events. Tymburski came in first in the competition, with Phalen placing a close second.

U of L team members are, left to right, Lyndai Thai-Baird and Ashley Tymburski (seated) and in the back row from left to right are Dr. Shamsul Alam, Michael Kawchuk, Matthew Helfrich and Devin Phalen.

“I haven’t actually traded personally. The other team members all have a little bit of trading experience so I was a little bit nervous about that. But it ended up turning out well for me,” says Tymburski, a fifth-year student working on a combined bachelor of management and bachelor of science degree.

At the competition, teams presented their investment strategies for two cases, one involving a methanol production company and the other for a gold exploration and mining company. The final part of the competition was a simulated trading exercise.

“We had a really good team. We all got along really well and we were dedicated to putting in the work and the hours to make sure we were successful,” says Helfrich. “The school offers a lot of these simulated market training programs and we do a lot of portfolio management projects, so we’re quite used to it. I think that gave us an advantage there.”

“We are a lot more confident now after going through this competition and are way more comfortable going forward,” says Phalen.

“I think we all took something out of it to help build ourselves and our personal portfolio,” says Kawchuk. “We were all very driven students going into it and I think that gave us the extra drive to do well in the competition. It was a fantastic team to be a part of.”

For Thai-Baird, the team’s performance is a solid indicator of the value of the trading floor.

“For us, as an institution, it shows that the things that we’re doing, especially with the investment that the Faculty of Management and the ��Ѹ��Դ��߿�Ƭ has made in this facility to give students the practical experience they need, really does translate to how we’ve done in the competition,” says Thai-Baird. “I hope we can continue to provide these types of experiences for students because it appears that it has really changed their outlook and their confidence level. Hopefully we can continue to bring home additional hardware in the future.”

Student-managed fund to provide real-life experience

trevor.kenney — Wed, 27 Jul 2011 18:00:41 +0000

The establishment of Markin Hall's Centre for Financial Market Research and Teaching (CFMRT) underpins the development of a student-managed investment fund, meaning that ��Ѹ��Դ��߿�Ƭ of Lethbridge students will soon be trading real money in real financial markets.

Still in the development stages, the fund will be used by students and supervised by an accomplished advisory board comprised of financial and legal experts from the finance industry.

"The student-managed investment fund will empower students by giving them the independence to research the financial markets and securities as security analysts," explains Dr. Shamsul Alam, professor of finance and area Chair. "Students will gain invaluable knowledge on how individuals, professional managers and investment dealers analyze, price, invest and manage risks in a volatile market."

Using current financial information, tools and resources, the student-managed investment fund will provide valuable training to the next generation of financial experts.

UNews - Shamsul Alam

The top six things to know before you invest in cryptocurrencies

Related Topics

Faculty launches minor in Agricultural Enterprise Management

Related Topics

U of L first Canadian site to host ��Ѹ�����Դ���߿�Ƭ Trading Challenge

Related Topics

��Ѹ�����Դ���߿�Ƭ of Lethbridge team brings home hardware in North American finance competition

Related Topics

Student-managed fund to provide real-life experience

Related Topics

U of L first Canadian site to host ��Ѹ��Դ��߿�Ƭ Trading Challenge

��Ѹ��Դ��߿�Ƭ of Lethbridge team brings home hardware in North American finance competition