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

Accounting and Discuss the Users of Accounting Finance Essay

a) Define accounting and discuss the users of accounting. The systematic recording, reporting, and analysis of financial transactions of a business. The person in charge of accounting is known as an accountant, and this individual is typically required to follow a set of rules and regulations, such as the Generally Accepted Accounting Principles. Accounting allows a company to analyze the financial performance of the business, and look at statistics such as net profit. There are two kind of groups who […]

A Look at Capital Asset Pricing Model Finance Essay

The Capital Asset Pricing Model (CAPM) has been invented by Sharpe (1964), and Lintner (1965)’ after the work of Markowitz’s in 1959. Since then the model has known tremendous success, its simplicity has lured many professionals and academics as well. Despite many criticisms, the CAPM is still used in modern finance and is widely present in finance textbooks. On the other hand we have the Arbitrage Pricing Theory (APT), a less restricted model when compared to the CAPM, but with […]

American Depository Receipts and Global Depository Receipts Finance Essay

Trade and commerce has been an important aspect of globalization. Since the 19th century, when the colonial era was at its peak, foreign markets were the reason for colonial wars since the importance of foreign markets were realized. However, towards the end of the colonial era, when newly independent countries began to build their economies from scratch they started clamping down on foreign investment and only decades later, slowly began to open up their markets after centuries of exploitation. Corporate […]

Analysis of Capital Asset Pricing Model Scenarios Finance Essay

Diversification refers to the strategies of reducing economic risk by investing in assets whose performance is not affected by the same economic variables. A group of assets forms a portfolio. A company can have two types of economic risks; financial risks and total operating risks. Financial risk results from use of debt capital in the companys structure and it is usually measured using the gearing ratio. Gearing ratio is found by dividing total debt capital with equity and then multiplying […]

An Evaluation of Real Estate Investment Trusts Finance Essay

Besides of Equities, Bond, Property, Fix Deposit, Hedge Fund, Unit Trust Fund and etc.A A new asset class investment option has emerged with potential fair return of investment in Malaysia.A REIT Also known as Real Estate Investment Trust.A With the concept like Unit Trust, by gather pool of money from all sizes of investors.A REIT based companies will invest, manage and distribute rental as dividend back to the investors.A It is also being trade in Bursa Kuala Lumpur with ease […]

An Evaluation of Studys of Fund Performance Finance Essay

The study of Dahlquist, Stefan and Paul (2000) analyzed the fund performance in Swedish. The study was conducted on the basis of Swedish mutual funds from the end of 1992 to the end of 1997. The study estimated the performance of Swedish funds from 1993 to 1997. The estimated the study then evaluated the relation between performance and fund attributes such as: inflows and outflows, size, turnover, etc. The results showed that larger equity funds tend to perform less well […]

Application of Derivatives to Portfolio Investment Management Finance Essay

The financial crisis of 2008 has been a turning point in the financial systems and economies across the globe. According to (Marshall and Grant, 1997) companies face many types of risks, some of which can be controlled and some cannot. However, recent decades have observed drastic changes in the nature of risk in global financial markets, where the volatility of many asset classes has increased. In an atmosphere where investors are consistently exposed to a comprehensive range of risks, derivatives […]

Corporate Finance and Formulas of Ratio Analysis Finance Essay

Corporate finance is defined as, the finance study with financial decisions business enterprises make and the tools and analysis used to make these decisions. Or A company division alarmed the financial operation. In most businesses raising money in corporate finance in different projects. Corporate finance is the method of raising funds or assets for any kind of expenses. Customer’s business firms and normally governments do not have the funds that they make to perform their operations and the funds that […]

Decision Making between Games Workshop and Hornby Finance Essay

Your group is a team of investment analysts for Bresil Investments. Your role is to provide investment advice to high wealth individuals. Stephen has been a client of your bank for many years and has approached your manager for investment advice. Stephen has a large portfolio of shares and has recently inherited a large sum of money which he also wishes to invest in shares. Stephen has a broad portfolio of shares but he does not have very much exposure […]

General Motors Foreign Exchange Risk Management Policy Finance Essay

General Motors was the world’s largest automaker and since 1931, the world’s sales leader. In 2000, it had a net income of $4.4 billion on revenues of $184.6 billion. North America represented the majority of sales to end customers but international operations were also growing and international sales had reached 18% of overall sales. The key objectives of GM’s foreign exchange risk management policy was to reduce cash flow and earnings volatility, minimize management time and costs dedicated to FX […]

How Systemic Risk Effects the Entire Market Finance Essay

Systemic risk; commonly known as market risk or un-diversifiable risk, is risk which affects the entire market and cannot be avoided through diversification. Events such as recessions, wars, significant political events, and interest rate fluctuations (to name a few) are all believed to be sources of systemic risk. A banking panic is where large scale withdrawals from banks occur, whereby the customer believes that there is a high probability of them losing their money due to banks collapsing. As the […]

Legality and the Morality of Insider Trading Finance Essay

Is insider trading ethical? Is insider trading illegal? Insider Trading phenomena is controversial and is bringing a lot of discussion around itself. Some of the opponents claim that it’s both not ethical and legal to use information, which is not putted into public knowledge, while other opponents argue that insider trading increases market efficiency and does not any hurt to anybody. During this paper I will try to bring topic closer to the reader by providing the reasoning of both […]

New Outlook on Payouts and Dividend Policy Finance Essay

Unlike during 1990’s, when rise in share price is much more than the interim dividend payouts by the companies, dividends are one of the most important factors to consider these days for any investor who looks for rather stable & less risky returns than going for aggressive investment strategies, while making their investment decisions. These dividends are the only income stream generated from the equity, representing its asset value, & form the lion’s of share of 60% of the total […]

Ratios to Evaluate a Company Nike Inc Finance Essay

NIKE, Inc, incorporated in 1968, is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. NIKE is a seller of athletic footwear and athletic apparel worldwide. In the seventies, in the meantime, the company was undergoing a redesign of the production system, expanding internationally and especially in Australia, under licensing agreements, Korea and Taiwan. 1978 was the year of the official birth of Nike Inc., but also the first sponsorship contract signed […]

Research Project an History on Currency Derivatives Finance Essay

The money usage spans thousands of years. Earlier many items have been used as commodity money such as precious metals, cowry shells, beads etc. as well as many other things that could be thought of as having some value. The first people didn’t buy goods from other people with money. They used barter. Barter is the exchange of personal possessions of value for other goods that you want. This kind of exchange started at the beginning of humankind and is […]

Risk Management Assignment on Ing Vysya Bank Finance Essay

A Brief about ING Vysya Bank. NG has gained recognition for its integrated approach of banking, insurance and asset management. Furthermore, the company differentiates itself from other financial service providers by successfully establishing life insurance companies in countries with emerging economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialisation is ING Direct, an Internet and direct marketing concept with which ING is rapidly winning retail market share in mature markets. Finally, ING distinguishes itself internationally as a […]

Rules and Regulations in the Money Market Finance Essay

The need for a money market arises because receipts of economic units do not coincide with their expenditures. Money market instruments are generally characterized by a high degree of safety of principal. Maturities range from one day to one year; the most common are three months or less. Active secondary markets for most of the instruments allow them to be sold prior to maturity. Unlike organized securities or commodities exchanges, the money market has no specific location. Trading in the […]

Studying the Relationship between Risk and Return Finance Essay

The main aim of this case is to find the portfolio that will offer investors the highest expected rate of return for any degree of risk they are willing to tolerate. Extra returns are needed by the investors for taken a higher level of risk. Sandra needed the basic idea on risk-return tradeoff and on portfolio management from Bolton in order to make the right investment. When investors are considering investing in a security market, the problem they face is […]

Study of Foreign Exchange Management of Toyota Finance Essay

As Toyota is a multinational corporation, Toyota has faced foreign currency exposures related to buying, selling and financing in currencies in different foreign countries. The foreign currency risk which exposed by is related to future earnings, assets and liabilities. The reasons are due to operating cash flows and various other financial instruments which are denominated in foreign currencies. Due to Toyota most profitable market is still in America and Euro countries, U.S. dollar and the euro are the impact of […]

Study on how Derivatives Can Reduce Risk Finance Essay

Derivatives are based on the behaviour of the basic assets. Derivatives have a lot of purposes. It can be used to minimise risk. For that it is need to allow the investor to hedge an investment or exposure, and hence it should be act as a function as a sort of insurance policy against adverse market movements. It can also be used to get extra leverage for specialized market speculation. These are a type of contracts which can be used […]

Study on how to Invest during Recession Finance Essay

In economics, a recession is a business cycle contraction, a general slowdown in economic activity over a period of time. During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes, business profits and inflation all fall during recessions; while bankruptcies and the unemployment rate rise. The key to investing during a recession is therefore to start off with the right mentality and do not panic. […]

Study on Introductory Finance and Market Portfolio Finance Essay

Having selected two stocks, LLOY.L and BARC.L, from the FTSE100 Index and downloaded the daily prices, spanning the period January 2008 – December 2010, it is now time to calculate the daily returns and the average returns. The daily returns are calculated by subtracting from the closing share price of the following day the closing share price of the prior day, all divided by the closing share price of the prior day. The daily return of stocks represents the changing […]

Study on some of the Kse Concepts Finance Essay

Ans. Trading in the future market offers an opportunity to the investor to invest in securities other than stocks. Investing in the futures market has a number of advantages. Firstly, instruments in the futures market are considered highly leveraged investments. The investor can earn alot from it by only investing a small amount. For instance, the investor will only have to pay 10% of the value of the contract and might earn much higher than it. In order to be […]

Study on Standalone Risk and Portfolio Risk Finance Essay

Firstly we will define Investment as “commitment of money or capital to purchase financial instruments or other assets in order to gain profitable returns in form of interest, income, or appreciation of the value of the instrument” (Investment, 2010) and Risk “is an uncertain outcome or chance of an adverse outcome.” (Risk, 2010) In any investment there is bound to be categorised risks namely Standalone risk and Portfolio risk. According to an online post by phillykelloggguy (2008) the standalone risk […]

Study on the Determination of Exchange Rates Finance Essay

It is a theory which says that exchange rates between currencies are in stable position when their purchasing power is the similar in each of the two countries. This means that the exchange rate between two countries should equal the ratio of the two countries’ price level of a fixed level of goods and services. When a country’s domestic price level is increasing (i.e., a country experiences inflation), that country’s exchange rate must depreciated in order to return to PPP. […]

Study on the Return on Capital Employed Finance Essay

Return on capital EmployedA (ROCE) is a financial measure that measures the performance of a company as to how it generates cash flow relative to the capital it has invested in its business. It is defined asA net operating profit less adjusted taxesA divided byA invested capitalA and is usually expressed as aA percentage. When the return on capital is greater than theA cost of capitalA (usually measured as theA WACC), the company can create or destroy on its value terms. The ROCE for Iggle Plc is 35% and […]

Testing the Validity of International Fisher Effect Finance Essay

Foreign exchange trading refers to trading one country’s money for that of another country. The need for such trade arises due to tourism, international trade, or investments across boundaries. The foreign-exchange market, as we usually think of it, refers to large commercial banks in financial centers, like New York or London, trading foreign-currency-dominated deposits among each other. Theories aiming to explore and understand interactions in international monetary variables became increasingly more important as deregulations and international integration of financial markets […]

The Ability of Price and Return Models Finance Essay

Several papers examined the ability of price and return models along with some alternative forms to accommodate the return-earnings relationship. An important ratio for the more low-risk, defensive investor was introduced by Graham and Dodd in 1933. They introduced the Earnings/Price ratio which is simply the Price/Earnings Ratio but flipped around as a benchmark for equity valuation. After the 1929 stock market crash, they recommend the investors that rather by trying to guess what the future bring, they should concentrate […]

The Framework of the Arrow Debreu Model Finance Essay

The Arrow-Debreu Model, also referred to as the Arrow-Debreu-McKenzie model is often used as a general reference for other microeconomic models. It was named after Kenneth Arrow, Gerard Debreu and Lionel W. McKenzie. When compared to prior models, the Arrow-Debreu Model radically generalized the notion of a commodity, differentiating them by time and place of delivery. Hence, for instance, ‘rice in India in July” and ‘rice in Bangladesh in September” are regarded as different commodities. The Arrow-Debreu Model usually applies […]

The Pros and Cons of Equity Financing Finance Essay

Equity financing and debt financing are two alternative ways which assisted us to start a business. In addition, equity financing and debt financing were the useful methods when a company lacking of funds for the expansion in order to open a new plant. Equity financing is one of the ways to increase the funds of the business. It means that more funds can be obtained by sell their ownership interest to the public in exchange for funds and normally it […]

Financial Markets Essays