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Well-known investment banks include:
• Goldman Sachs
• Morgan Stanley
• UBS
• Credit Suisse
Their analysts also publish market forecasts and research
reports-and these reports often shape how global investors think.
4. Hedge Funds
Hedge funds are private investment groups that manage money
for wealthy individuals or institutions.Their goal is simple:
maximum profit.Unlike banks, they are not restricted by
regulations in the same way, so they can take very large and
aggressive positions in the market.
They use advanced trading strategies, algorithms, and leverage
to multiply gains.Hedge funds can hold positions worth billions of
dollars, and when they enter or exit, it can create sharp
movements in currency prices.
A famous example is George Soros, who in 1992 made over $1
billion in one day by shorting the British Pound during what
became known as “Black Wednesday.”This single event forced
the Bank of England to withdraw the pound from the European
Exchange Rate Mechanism.
