Financial Markets Essay Examples - Free Research Paper Topics on StudyDriver.com

Asset and Liability Management Essay Online for Free

ASSET AND LIABILITY MANAGEMENT In banking, asset and liability management (ALM) is used to manage the risks that arise due to mismatches between the assets and liabilities (debts and assets) of the bank. Banks face several risks like the liquidity risk, market risk, interest rate risk, credit risk and operational risk. Asset Liability management (ALM) is a strategic management tool to manage interest rate risk and liquidity risk faced by banks, other financial services companies and corporations. Banks manage the […]

Banking Regulation after the Financial Crises Example for Free

This essay discusses the developments in banking regulation that are currently being discussed and put in place on account of the global financial and economic crises. With banks, primarily in the United States but also in other developed nations, being the epicentre of the global banking crisis, recent years have been marked by extreme concern among individuals and organisations across the globe on the causes of the economic crisis, the role of banks in the financial crisis, the reasons behind […]

Capital Asset Pricing Model Essay Example Pdf

The capital asset pricing model provides an equation for determing the return on a stock. It states that the expected (average) excess return on a stock depends on the expected excess market return according to the following relationship. In the formulation, the estimated beta can be obtained from a time series regression of the stock’s excess return on the excess market return. The risk of a stock and hence the average return on that stock should depend on the volatility […]

Debt Equity for Funds Essay Example Pdf

The generation of fund is one of the most important decisions for firms. When the firm is unable to generate enough internal funds to invest in various projects then firm take a decision to issue debt or equity for funds. The objective of study is to determine the financial characteristics that lead firms to choose Equity or Debt. This study helps to predict the choice of firms for funds through the Multiple Discriminant Analysis on the basis of their distinctive […]

Consumer Awareness in Stock Markets

INTRODUCTION Stock trading has evolved tremendously. Since the very first Initial Public Offering (IPO) in the 13th century, owning shares of a company has been a very attractive incentive. Most of the recent advancements with the trading have been due to the Internet. The Internet has allowed online trading. In contrast to the past where only those who could afford the expensive stock brokers, anyone who wishes to be active in the stock market can now do so at a […]

The Capital and Money Markets in the Economy

There were two group of markets can be found in financial market. They were the capital market and the money market. Although they both come from financial market but they consist of differences. In capital market, we will found the stocks and bond market but in general it is the market for securities where long term funds can be raised by companies or government. To raise the funds, a person needs to purchase a price-set bond in order to borrow […]

To what Extent does Financial Engineering have an Important Role

As we are in modern world today, everything around us has been changing continuously. The world that we see today is different from the world in 40 years ago. Technologies are one example, which has been improving dramatically. Letter had been a popular way to communicate and then land line telephone came to help communication more easily and the following is mobile phones, which have more and more convenient until today. The most important technologies are computer and internet. These […]

Management of Banks and Financial Institutions

Management of Banks and Financial Institutions CIA-2 Asset Liability Management Management of Assets and Liabilities by Banks [pic] Submitted By: Paul George 0921420 Caroline 0921440 Poornima 0921449 Sonal 0921454 Anvin 0921459 Meaning of ALM ALM is an attempt to match Assets and Liabilities, in terms of Maturities and Interest Rate Sensitivities, to minimize Interest Rate Risk and Liquidity Risk. • ALM can be termed as a risk management technique designed to earn an adequate return while maintaining a comfortable surplus […]

Credit Ratings Role in the Financial Crisis

The global financial system’s institutional framework has been evolving over time.Every crisis has helped decipher a gap in the financial structure which is then fixed by the regulating authorities.It hasn’t been very often that the regulators were able to identify the gaps before the market identified it.This does not serve the purpose of existence of regulatory authorities.In future the role of regulatory authorities should be pro active in nature rather than reactive mode of undertaking corrective actions. The subprime crisis […]

Assessing of a Multinational Company Essay Example Pdf

A multinational company as stated by Madura (2010) is ‘a firm that engages in some sort of international businesses’, with globalization and diversification of multinational firms comes along with it certain exposures such as country risk and political risk along with certain financial risk. Multinational firm do face greater risk in such environment compared to domestic firms as they raise capital in one country because of low cost of capital and invest in another country and also produce goods in […]

Analysis of Private Equity Funds Essay Example Pdf

A Private Equity (‘PE’) fund is a fund which invests its money in private equity, usually to gain control over companies in order to re-structure the company. When the fund takes control of a company, it normally takes the company off the market (that is if the company is not private already), restructures the company, and then relists it on the stock market. [1] A PE fund is raised and managed by investment professionals of a specific PE firm. Typically, a […]

Behavioural Finance Limits of Arbitrage Essay Example Pdf

Behavioural Finance does not negate the arbitrage mechanism per se and its price correcting ability. However, it argues that not every deviation from fundamental value created by actions of irrational traders will be an attractive investment opportunity for rational arbitrageurs (Szyszka, ). Even when an asset is highly mispriced, many arbitrage strategies which are designed to correct and eliminate the fundamental mispricing, are ultimately risky and costly for the arbitrageur. Therefore many strategies are perceived to be unattractive which results […]

Kossans Return and Market Return Essay Example Pdf

Chart 1 represents the return of Kossan Rubber Industries and KLCI index. In year 2004, the Kossan’s stock return is higher than the market return which is 1.1174% and 1.0131%. This implies that Kossan have a high performance in year 2004. The following year, both of Kossan and KLCI index have a negative return which is -1.9569% and -0.0381% respectively. However, the situation has been improved in year 2006. The Kossan’s return has increase to 8.3246% which is highest return […]

Condition for Emerging Economies Finance Essay

Emerging market is used to depict a nations Social or business movement in the procedure of speedy growth and industrialization. Currently there are approximately 28 emerging markets in the world, within that India and China is considered being the largest. Whenever we are talking of emerging economies, there are major five areas on which we need to focus. These relate to macro-economy, external sector management, regulation of the financial sector, corporate sector and transparency in the system. Now-a-days these sector […]

Credit Risk in Banking Finance Essay

Credit in bank is a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some later date (Joan Selorm Tsorhe p.6). However, credit risk arises whenever a lender is exposed to loss from a borrower, counterparty, or an obligor who fails to honor their debt obligation as they have agreed or contracted (Colquitt 2007, 1). Credit risk implies that payments may be delayed or ultimately not paid at all, which can […]

Discounted Cash Flow Valuation Finance Essay

If you intend to buy stocks on the capital markets, your first step would be to find those which are undervalued in relation to the current market price. This is the only way to be successful and profitable on the long-term. It makes sense to look for cheap stocks, doesn’t it? I mean, why would someone be interested in buying expensive stocks? When using terms ‘cheap’ and ‘expensive’ I am not speaking in absolute numbers, but rather relative, comparing stock […]

Factors Affecting Exchange Rates Finance Essay

Exchange rates play a vital role in a country’s level of trade, which is critical to every free market economy in the world. One very basic definition of exchange rates is the rates at which one unit of a country’s currency can be exchanged into another one. As such, the observation of exchange rates is crucial and its one of the most watched, analysed and fluctuate economic variables. But exchange rates do matter on a smaller scale as well: they […]

Fixed Rate Treasury Notes Finance Essay

The Philippine domestic bond market consists of 2 types of bonds – short- and long-term bonds; mainly issued by the national government. The majority of bonds in the Philippine bond market are the Treasury notes and bonds. Though the corporate bonds make up a small percentage of the overall bond market, they have been steadily growing their share in the last few years. Over the last 5 years, the Philippine fixed income market has put in efforts to bring structure […]

From Watford to Barings Finance Essay

Nick Leeson was a working at Morgan Stanley, one of the most successful American banks, where he was on a training course in the Settlements Division for Futures and Options. He was twenty years old, earning £20,000, and he bought his first flat in Watford. He was the model employee at work because nobody knew where he came from and what he did at weekends. The world of futures and options was expanding rapidly, and few people really understood how […]

Importance of Institutional Investors Finance Essay

Assess the importance of institutional investors for financial markets. Institutional investors are organizations which pool large sums of money and invest those sums in securities, real property and other investment assets. They can also include operating companies which decide to invest their profits to some degree in these types of assets. Types of typical investors include banks, insurance companies, retirement or pension funds, hedge funds, sovereign wealth funds, endowment fund, investment advisors and mutual funds. A financial market is a […]

Introduction to Portfolio Theory Finance Essay

Firstly, we need to define the word of portfolio in order to get more understanding about the portfolio theory and portfolio development. Portfolio is refers to a group of financial assets such as stocks, bonds and cash. The portfolios are mostly hold by investors according to their risk tolerance, time taken and investment objectives and/or will be controlled by financial professionals, banks and other financial institutions to get the better allocation of risk-return portfolio. Besides, there are two types of […]

Raising Equity through Share Finance Essay

4.1 Introduction: SHARES: Every share represents a small chance in the equity of a company. We can buy Huge or little lots to match the amount of money we want to spend. A Share price of a company can get higher or go down as a result of its own performance or Market circumstances. One time the shares are brought and transferred to our name will be Came in the company’s share register which will enable us to accept all […]

Risk Management Case Studys Finance Essay

The financial statements are prepared under the historical cost convention, ongoing concern basis and in terms of the Accounting Standards. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis to the extent measurable and where there is certainty of ultimate realization in respect of incomes. In case of foreign subsidiaries, being non-integral operations, revenue items are consolidated at the average exchange rate prevailing during the year. All assets and liabilities are converted at […]

The Cash Flow Analysis Finance Essay

A cash flow statement is a statement which explains the various sources from which the funds are raised and the uses to which these funds are put. Complementing the balance sheet and income statement, the cash flow statement (CFS), a mandatory part of a company’s financial reports since 1987, records the amounts of cash and cash equivalents entering and leaving a company. The CFS allows investors to understand how a company’s operations are running, where its money is coming from, […]

The Dividend Relevance Theory Finance Essay

INTRODUCTION The paper starts by examining the effect of taxes on earning of a corporation in respect of dividends & capital gains. In the journal article prepared by (Brennan, 1970) he asserted through the work of (Selwyn, 1967) that “corporate earnings are paid out entirely as dividends and are taxed as personal income.” In addition to this, (Selwyn, 1967) also stated that “corporate earnings are translated into capital gains with all gains being realised immediately by investors and taxed at […]

The History of Gold Finance Essay

Gold has been valued as a global currency, a commodity, an investment and used as jewellery for thousands of years. Most people believed that gold is safe haven asset because it hedge against inflation and dollar depreciation. Gold can store their value over the long period. For investors they bought gold as tactical assets in order to capitalize the positive price outlook or to maximize the return from gold trading. Gold also used to help diversify a portfolio in order […]

The Weak Form Efficiency Finance Essay

Fama, after the publication of his world renowned article in May 1970 he is known as the godfather of the efficient market hypothesis (EMH). It all began when he submitted his Ph.D. thesis which entitled “Efficient Capital Markets: A Review of Theory and Empirical Work.” In that paper he defined the concept of accurate market efficiency. EMH allows that when there is new information available, some of the managers or the investors may overreact and some of them may underreact […]

Types of Derivatives Traded Finance Essay

OTC derivatives are contracts which are privately negotiated and traded directly between two parties. Trade takes place excluding exchange and other intermediaries. Being largely unregulated when it comes to disclosure of information, the OTC derivatives market is the largest market for derivatives. Products such as swaps and forward rate agreements are examples. Given that trades happen in private, recording of OTC figures is difficult and this can be clearly noted from the Bank for International Settlement (BIS) figures. The total […]

A Report on a Non Bank Financial Institution

Non Bank Financial Institution Definition: A non-bank financial institution (NBFI) is a financial institution that does not have a complete banking license and is not administered by a national or international banking regulatory agency. NBFIs make easy bank-related financial services, such as investment, contractual savings, risk pooling & market brokering. Examples: Examples consist of insurance firms, check cashing locations, pawn shops, currency exchange, cashier’s check issuers, payday lending, & microloan organizations. Alan Greenspan has identified the role of NBFIs in […]

Amount of the Capital Raised Finance Essay

Amount of Capital Raised On May 18th, 2012 Facebook had its initial public offering. The company offered 421,233,615 shares priced at $38.00. This enabled Facebook to raise about $16 billion on the first day of IPO. The company was valued at about $104 billion at its listing. The approximately $16 billion capital raised was split in the following manner: $176 million was paid for underwriting discounts and commissions $6.764 million proceeded to Facebook $9.066 million proceeded to selling shareholders Thus, […]

Financial Markets Essays