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

The Large Movements of Volatility Spreading by the European Monetary Union

Over the last months, European Monetary Union (EMU) countries have experienced large movements in their spreads with an unrecorded degree of volatility. Academic research consensuses agree these movements haven’t been the result of the same causes over time; for instance, at the beginning of the crisis investors required higher premiums, making the market price of risk increase. There were a preference for few riskier assets, making sovereign securities the favorites at the expense of corporate bonds and other riskier assets; […]

The Capital Asset Pricing Model

Introduction The Capital Asset Pricing Model (CAPM) is being used since the 1960s to measure portfolio performance and to calculate the cost of capital. In the 1990s Eugene Fama and Kenneth French tried to improve the performance of the CAPM by adding two factors to the model. The first factor is the book-to-market ratio of stocks in the portfolio and the second factor is the stock’s underlying company size. This model was to be superior to the CAPM. However, Graham […]

Spry Plc

1.0 Introduction Spry Plc. as a large listed company, the directors identify that there are some large projects which have great chances for success if the company has enough of funds to take over it. The estimated finance needed for the projects is approximately £200 millions; the company has to search for outside sources in order to reinvested profits in existing undertaking. There are some subjects to be reported on this piece of work is either debt or equity to […]

Stock Exchange

INTRODUCTION: The stock exchange is a kind of capital market which helps to companies to raise funds not to make profit from it. Stock exchange is having its own identity worldwide. It gives a platform for giant companies as well as small enterprises to extend their power in the international market. The exchange also provides a highly active and efficient market for dealing in wide range of securities for e.g. debts, equities, exchange traded funds, contracts for differences, depository receipts. […]

Strategic Analysis and Valuation of De La Rue

DeA LaA Rue Plc dates its origination way back to 1821 when its founder Thomas de la Rue started it as a stationer and printer on a small scale in the UK. Since then the company has diversified geographically and has spread its footprints across 24 countries today employing approximately 4000 people all over the world. De La Rue is rated as the world’s largest commercial security printer and papermaker, which is involved in producing over one hundred and fifty national currencies […]

Security Valuation of APN News and Media Ltd

This report discusses the security valuation of a media and publishing company called APN News and Media ltd. The research follows the three step valuation process and top down approach which starts by analysis of the economy and moves further for analyzing the industry and filters down to the company analysis and valuation of the stock. The First part of the report presents an in depth analysis of financial ratios for APN News and Media ltd and its two competitors […]

Introduction to Underwriting

INTRODUCTION TO UNDERWRITING Underwriting is an agreement, entered into by a company with a financial agency, in order to ensure that the public will subscribe for the entire issue of shares or debentures made by the company. The financial agency is known as the underwriter and it agrees to buy that part of the company issues which are not subscribed to by the public in consideration of a specified underwriting commission. The underwriting agreement, among others, must provide for the […]

Risk Premiums and Efficient Market Hypothesis

1. Introduction An attempt to elaborate the relationship between the bad model problem and the Efficient Market Hypothesis or the Equity Risk Premium needs to necessarily commence with a short overview of the hypothesis. The Efficient Market Hypothesis, (EMH) was first developed by Eugene Fama of the University of Chicago, in the 1960s, to explain the behaviour of prices in equity markets. It has now been generalised to determine price behaviour patterns in other asset markets and has become one […]

Repo Transactions Securities

Makeup Case ESM-17 Q. During the ESM congressional hearings, the auditor’s of ESM’s major customers were questioned regarding the confirmation procedures they used for their client’s transactions with ESM. What would be the key objective or objectives of an auditor’s confirmation procedures when a client has engaged in (a) repo transactions with a government securities broker and (b) reverse repo transactions with a government securities broker? What types of procedures would be used in auditing repo and reverse repo transactions? […]

Report for Potential Investors in Tesco Plc

The purpose of this report is for potential investors who are considering buying shares in Tesco plc. The report creates an overall picture of Tesco’s financial position and provides an assessment of Tesco’s performance over the last three years. The information used to assess the financial position of Tesco was gathered from the Annual report of the last three years. This information was downloaded from the official Tesco website. From that, the ratios were calculated from the financial statements within […]

Raising Capital through Private Equity

1.3 Definitions of equity: Equity is the owner’s interest into the firm or business as on preferred stock or common stock. It is equal to the total assets less total liabilities it is called as the net book value or the net worth or the shareholders equity. There is a real state so there is difference between the property owners and the owners owes against that property. The future trading context there is a value for the for the securities […]

Example of Profit Growth in a UK Retailer

Title: Corporate Finance – Topps Tiles 1. Topps Tiles is one of the leading UK retailer and distributor of ceramic tiles, wooden flooring and related products. It is a FTSE 250 index company. Topps Tiles is a highly cash generative company with rapidly increasing earnings per share. Over the last five years, its earnings per share have increased from 2.6 p to 11.3 p – annualised growth of 44% (See exhibit 1 for earning per share and dividend history). Its […]

Mortgage Bonds a Bond Secured by a Mortgage

A mortgage bond is a bond secured by a mortgage on one or more assets.A These bonds are typically backed by real estate holdings and/or real property such as equipment. In a default situation, mortgage bondholders have a claimA to the underlying property and could sell it off to compensate for the default. Mortgage bonds offer the investor a great deal of protection in that the principal is secured by a valuable asset that could theoretically be sold off to cover the […]

Management of Risks to Prevent Huge Losses

In every business there is always risk and if the risk is not well managed by the company, it will lead to the huge losses and eventually will make the company bankrupt. Hence, the tool to manage the risk is introduced called derivatives. There are many types of derivatives and the most commonly use are options, futures and forwards. However, there are many cases of company incurred huge losses because of the derivatives. One of the popular cases on derivatives […]

LEGISLATION ADMINISTERED and ENFORCED by BANK NEGARA MALAYSIA and SECURITY COMMISSION

The Act provides for the administration, objectives of the Central Bank. It also enumerates the powers and the duties of the Central Bank in relation to issuance of currency, maintenance of external reserve, authorized business of the bank, specific powers to deal with ailing institutions, its relationship with the Government and financial institutions. The Act also contains general provisions on the Bank’s accounts, powers to compound etc. 2. Banking and Financial Institutions Act 1989 (BAFIA) The BAFIA which came into […]

Liquidity Risk

What is liquidity risk and how managers deal with it? COMMERCIAL AND INVESTMENT BANKING 1. Introduction Technological progress and internationalization has led to rapid innovations in financial markets and regulations. This changing environment in which banks find themselves presents great opportunities but also a wide range of risks while operating. Such risks are interest rate risk, market risk, credit risk, off-balance-sheet risk, technology and operational risk, foreign exchange risk, country or sovereign risk, liquidity risk and insolvency risk. In this […]

Investment and Fluctuation in the Gold Market

Someone rightly said that practical training is far better than the classroom training. During practical training, person comes to know about the actual difficulties faced during the work. Bachelor of Business Administration (Hons) {BBA(H)} imparts the student with such virtues and prepares to take the business world in their stride. The project gives a considerable exposure to students and provides them with an opportunity to see the practical aspects of working of the corporate world. This project is yet another […]

A Study on Investors Preferences Towards Various Investment Avenues…

In India, generally all capital market investment avenues are perceived to be risky by the investors. But the younger generation investors are willing to invest in capital market instruments and that too very highly in Derivatives segment. Even though the knowledge to the investors in the Derivative segment is not adequate, they tend to take decisions with the help of the brokers or through their friends and were trying to invest in this market. This study was undertaken to find […]

Inter-Market Arbitrage

Finance 1 Inter-Market Arbitrage The question posed is to examine whether a trader with $1 million can profit from inter-market arbitrage. The following facts are available: – New York Citibank: $ 1.2223/ London Barclays Bank:$ 1.8457/A£ Frankfurt Deutsche Bank: 1.5100/A£ To resolve the question, the commencement of the process is to begin with calculating the a cross rate, which is arrived at by calculating the ratio of the exchange rate of currency A to the dollar divided by the exchange […]

Introduction to EasyJet Plc

EasyJet is a low-fare airline which was established in 1995 by a Greek businessman Stelios Haji-Ioannou. The company has a big growth from its original bases in Lutton, from where easyjet operated only two routes to Edinburgh, and Glasgow. Nowadays it is giving its services by 171 airplanes on more over 100 destinations through all over the world including Europe, North Africa and even the Middle East. It’s official company name is easyJet Airline Company Limited. Only in the last […]

Introduction to the Nokia Mobile Phone

It all began for Nokia when Fredrik Idestam built a paper mill back in 1865. He built another factory near Nokianvirta River, Finland, the place whose first five words gave the company its name “Nokia”. Between the years of 1865 and 1967 Nokia was recognized as a vital industrial machine; though further expansion needed a merger with a cable company and another merger with a rubber firm to set up the Nokia Corporation. This was the beginning of the move […]

India’s National Stock Exchange

CHAPTER-2 INDUSTRY AND COMPANY PROFILE 2.1 INDUSTRY PROFILE Indian financial market consists of two markets i.e., money market and capital market. Money market is mainly to meet the short-term needs and capital market for long term needs. 2.1.1 CAPTAL MARKET AND ITS STRUCTURE Capital market is a financial market, which provides and facilitates an orderly exchange of long term needs. The capital market in India is classified into 1. Primary market 2. Secondary market The primary market deals with the […]

Analysis of Four FTSE 100 Stocks: Stocks and Shares

Analysis of four FTSE 100 stocks Introduction This paper looks at the share price performance of four FTSE100 listed companies. The four companies randomly selected for analysis are GlaxoSmithKline (GSK), Prudential (PRU), Tesco and Vodafone Group (Vod) representing pharmaceutical, financial, retailing and telecommunication sectors. Share price series analysis Appendix I shows the average monthly share prices of the above companies for the period July 2001 to December 2003. Table 1 below shows the summary of share price analysis for the […]

FUNDAMENTALS of FINANCE and USING UNIT TRUST as an INVESTMENT INSTRUMENT

A unit trust is a form of collective investment constituted under a trust deed. In Malaysia the first unit trust was established by a company known as Malayan Unit Trust Ltd in 1959.Malaysia introduce the unit trust concept earlier than its Asian neighbours. Malaysians can now invest unit trust online opportunely via FundHYPERLINK “https://www.fundsupermart.com.my/main/research/viewContent.tpl?articleNo=593” supermart. Fund supermart provides regular investment update in the form of weekly email newsletter and quarterly magazine only to their investors. Unit trusts are open-ended investments, […]

Green Shoots

Introduction The whole world is aware of the improvements seen in the global economic system. ‘Green Shoots’ seem to have become the favourite term for the financial gurus. But as is with ever theory, this too has its share of critics, with a school of thoughts terming these ‘green shoots’ nothing but weeds. While the debates continue between the gurus and the critics as does the battle between the bulls and bears, the winners seems to be the stock markets, […]

Finance Essays – Foreign Exchange Currency

Foreign Exchange Currency The term foreign exchange is normally used to denote foreign currency surrendered or asked for in any of its current forms, i.e. a currency note or a negotiable instrument or transfer of funds through cable or mail transfer or a letter of credit transaction requiring sale and purchase of foreign exchange or conversion of one currency into another, either at the local center or an overseas center. The banks, dealing in for exchange and providing facilities for […]

Examining Exchange Traded Funds

CHAPTER I INTRODUCTION In the past few decades many performance evaluation studies indicated that actively managed mutual funds, which seek to obtain excess returns than the market by actively forecasting returns on individual stocks, do not actually obtain statistically significant excess returns (Jensen, 1968; Grinblatt and Titman, 1989; Elton et al., 1993; Malkiel, 1995; Gruber, 1996; Carhart, 1997; Edelen, 1999). This was consistent with the ‘Efficient Market Hypothesis’ which suggests that due to the availability of all kinds of information, […]

The Features of Technical Analysis

Explain the key features of technical analysis, including the strategies and techniques used in technical analysis. Discuss the features of fundamental analysis, critically evaluate fundamental analysis versus technical analysis. Introduction The following paper will critically evaluate the differences between technical and fundamental analysis. Even though both technical and fundamental analyses are tools used to make investment decisions there is sharp differences in the two approaches. Technical analysis is in sharp contrast to efficient market hypothesis (EMH), which contends that past […]

Economists Asset Market

Literature Review There have been different views between Economists and financial market participants upon the valuation of an asset. Economists believe that the price of an asset should reflect the fundamental value given the assumption of rational behavior and of rational expectations. On the other hand, financial market participants believe that the fundamental value is part of the asset price. Thus, Markets participate will interpret a positive price volatility as the herd behavior. However in the past they were unable […]

Effect of Overconfidence that Happens Within the Market

Odean (1998) theoretically investigated the effects of overconfidence in different market structures which differ in information distribution and in price determination. He presented overconfidence effects on different market measures such as trading volume, market depth, volatility, expected utility and market efficiency taking overconfidence of different traders: price takers in the market where information is broadly disseminated, strategic-trading insiders in markets with concentrated information and market-makers. Odean assumed that investors were rational in all respects except valuing the information. They overestimate […]

Financial Markets Essays