Microeconomics Essay Examples - Free Research Paper Topics on StudyDriver.com

Study and Analysis of Commodity Markets Finance Essay

A commodity market is a place in where basic, unprocessed (raw) materials and primary products are traded in exchange of money or other commodities. Our first key term is “commodity” in the definition. There five main categories of commodity that are traded: Grains: corn, wheat soybean, etc. Energy Products: crude oil, heating oil, gasoline, natural gas, etc. Metals: gold, silver, platinum, etc. Softs: food and manucaturing products such as cotton, coffee, etc. Livestock And second key term is “market”. Trading […]

Study on the International Financial Markets Finance Essay

The financial system and the commodity market play a vital in economic performance and development. In order to provide a clear understanding, we begin with definitions of international finance as the branch of economics that studies the variations of exchange rate, foreign investment and how these affect the international trade. We introduce financial market with direct transactions between the savers e.g. household, firms and the government and financial intermediaries which transform the direct obligation of savers into indirect obligation of […]

The Object of Uae Stock Market Finance Essay

In this project I try find out the object of UAE stock market and how they react to various economical situation. Economical activity in UAE is very diverse most of the thing round around the stock market of UAE, so I will study deeply into stock market to give out my suggestion and recommendation by my research. My research will include brief description all about stock market of UAE. I will give detail about stock market in UAE and explain […]

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 […]

Excessive Trading Volume and the Overconfidence Customers Finance Essay

The main question in this paper is that the excessive trading volume is caused by the overconfidence customers. The author makes hypotheses and carries out some tests in this essay to support the main question. This paper provides the accurate data and examples, moreover, some classical theories and formula also be mentioned. For testing the hypotheses, author has to focus on the overconfidence customers, and analyze them. Including why customers become overconfidence? How they usually do in the investment market? […]

International Financial Markets and Forex Desk Brs Finance Essay

The main objective of multinational financial management is to make financing and investment decision that add as much value as possible to the firm. The main focus of this report is on foreign exchange and the risks associated with it. The primary purpose of the foreign exchange market is to assist international trade and investment, by allowing businesses to convert one currency to another currency. This report will cover the risk management tools with reference to hedging and derivatives in […]

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 […]

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 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 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 the Uses of Hybrid Finance Finance Essay

An instrument of hybrid finance can be defined as a security which holds the combination of features of both equity and debt. Users can benefit from the positive factors of equities and debt instruments without incurring the disadvantages of them. However there are also risks that are associated with the use of hybrids. There are various forms that hybrid financing can take, for example convertible bonds, warrants, preference shares, callable bonds and innovative hybrids. In this essay the various forms […]

The Empirical Evidence on the Disposition Effect Finance Essay

Disposition effect, which is studied by many literatures, is one of popular bias of investors. It was firstly suggested by Shefrin and Statman (1985). They gave an explanation of the disposition effect that “Investors have tendency to sell winners too early and ride losers too long.” Moreover, the result from the experiment of Odean (1998) supported the disposition effect theory. Odean (1998) compared between Proportion of Gains Realized (PGR) and Proportion of Losses Realized (PLR). PGR can be calculated by […]

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 […]

Three Propositions of the Arbitrage Pricing Theory Finance Essay

Arbitrage opportunity arises if an investor can construct a zero investment portfolio with a zero profit, in other words, ability to make profit without any risk. Arbitrage Pricing Theory based on three main propositions. First, Security returns can be described by a factor model. Second, idiosyncratic risk can be diversified away. Third, Arbitrage opportunities are eventually diversified away. A “This theory predicts a relationship between the returns of aA portfolio and the returns of a single asset through a linear […]

Understanding the Corporate Debt Market in India Finance Essay

The Planning era began since 1951 and DFIs were increasingly encouraged to finance the project funding needs of the Indian corporate sector. The Government of India and RBI facilitated the concessional rates for corporate sector by giving the following to the DFIs: Access to low cost funds Permission to issue bonds with government guarantee Allocations from budget With the onset of economic reforms, the budgetary support and government guarantee to DFIs was withdrawn. The DFIs converted themselves into commercial banks […]

Validity of the Capm and Alternative Theories Finance Essay

A major sector in finance is the optimization of portfolio. The target is to maximize the excepted return and minimize the risk. In 1952 Harry Markowitz with his theory about portfolio selection made two observations. The first one was that the combinations of two risky assets provide non-cumulative standard deviations since the two assets are positive correlated. Secondly, when a portfolio of risky assets is built, the standard deviation risk of the portfolio is less than the sum of the […]

Environmental Factors Faced by Dell and its Competitors Business Essay

The Dell Computer Company so far is been considered the most successful business company in the world among those that are in market for the past twenty years. In 2005, the company was titled the Number 1 Personal Computer vendor in the world besides being an unknown start-up in 1984.With its unique strategy of doing business, it has enabled itself to be the highlight of the computer industry comprising of some big giants including HP, IBM and Microsoft. Dell has […]

History and Structure of New York Stock Exchange Finance Essay

In this paper, it begins by an interpretation of the role and functioning of stock markets, the New York Stock Exchange is represented in this case. Firstly, it goes through the history of the NYSE, it explains its administrative structure. An overview of the advantages of the stock exchange for both investors and corporations is provided. It analyzes the question of efficiency of financial markets. What is stock exchange? "Stock Exchange An organized marketplace for securities featured by the centralization […]

How Efficient Market Hypothesis Explains Share Price Movements Finance Essay

The Efficient Market Hypothesis is perhaps the most prevalent, controversial and well-known market theory in the world. EMH is one of the arguments made in favour of the stock market. It was developed throughout the 20th Century however it became more prevalent once Eugene Fama penned the term Efficient Market Hypothesis in his thesis from 1970. Since then the theory has grown and evolved, however the basic concept has remained the same. ‘If new information comes onto the market concerning […]

Managers should Run Businesses According to Shareholder Interests Finance Essay

Managers have always been known to lead and direct an organisation, since the firm is owned by the shareholders but run by the management. Managers should run the business with the shareholder’s interest, thus the main objective of managers should be to maximise owner’s wealth by maximise amount of dividends paid out to shareholders. Since the amount of dividend can be represented by the current stock market’s values of the firm ordinary share capital. As a result, the main interest […]

Methods and Reasons for Investing in Certain Companies Finance Essay

Twelve months ago, you had a $20 000 windfall, and decided to invest all of this money by purchasing shares in companies listed on the ASX. Decide, with reasons, on the companies you invested in, and then access the price you paid for their shares twelve months ago. Discuss the growth, or otherwise, of your investment and compare the performance in the share values of each of the selected companies against an appropriate market indicator. Mathematical Investigations Using ET where […]

Portfolio Theory and Capital Pricing Model are Essential Finance Essay

Portfolio Theory is a theory of investment which try to maximize portfolio expected return for a given amount of portfolio risk, or evenly minimize risk for a given level of expected return, by carefully choosing the proportions of various assets. The expected return on a portfolio is calculated on the stocks which comprise the portfolio. The weights reflect the proportion of the portfolio invest in the stock. This can be expressed as follows: Where: = expected return on the portfolio = number of stocks in the portfolio =the […]

Put Call Parity and Prices of European Put Finance Essay

People who have done financial mathematics before or worked in financial area must be familiar with a terminology called put-call parity. The put-call parity (PCP) describes the relationship between the prices of European put and call options with the same exercise price and time to maturity. It shows that the value of a European call with certain strike price and exercise date can be deduced from the value of a European put with the same strike price and exercise date, […]

Speculative Trading Profits in the Foreign Exchange Market Finance Essay

Introduction Speculation in financial terms means an initial investment on which does not have any safety or there is significant risk of loss on investment. The term speculation is defined by Graham and Dodd’s which means buying share, equity, assets or debts without analysis which involves a significant risk. Others financial said purchase, holding, short-selling of financial instrument, derivatives, collectibles, stocks, commodities (oil and gold) , bonds to gains profits when fluctuations in its price. Where as “investment” is a […]

Study on Initial Public Offerings and Going Public Finance Essay

[Synopsis: This is a 4 page research paper, written in APA format discussing the type of IPO that E-bay should use to take Skype public. This is based on the type of investors Skype is likely to attract, lessons learned from Google and Morningstar from their auction IPOs and the cost and risks of each of the two types of IPO. The paper further describes the steps that a firm must take in order to go public, identifies success factors […]

Study on the Different Types of Forward Contracts Finance Essay

FORWARD CONTRACTS: A forward contract agreement is effective under the consistent critical terms method if all the following criteria are met: 1. The forward contract is for the purchase or sale of the same quantity or notional amount and at the same time as the hedge able item. 2. Upon association with the hedge able item, the forward contract has a zero fair value. 3. The references rate of the forward contract is consistent with the reference rate of the […]

Study on the Essence of Initial Public Offering Finance Essay

The essence of an initial public offering (IPOs) is simple – it is the first public sale of the shares of a company aimed at raising capital. Three main participants in the IPO process are (1) the issuing firm, (2) the investment bank underwriting the offering, (3) and the investors. Most companies have found a certain window of opportunity to take their shares public. This means that the market conditions and the anticipated valuation of the company are favorable at […]

Study on the Financial Strategies Used by Metallgesellschaft Finance Essay

Metallgesellschaft MG is the 14th largest industrial company in the Germany. It has started working in December 1991. Its executive chairman was Heinz Schimmelbusch. About 58000 employees were working in this company. It was a large company, involved in a wide range of activities, like mining, engineering, commodity market and financial services. Major shareholders in this company were Deutsche Bank AG, the Dresdner Bank AG, Daimler-Benz, Allianz, and the Kuwait Investment Authority MG, a traditional metal company. Its customers were […]

The Nature and Role of the Financial System Finance Essay

Financial system is a mechanism where economic exchange activities can be done. The economic activities can be done through the interaction between financial institutions and the financial market. The purposes of this interaction are to mobilize fund and providing payment facilities for the financing of commercial activities. With the emergence of Islamic finance, the dual financial systems being introduce. In dual financial system the conventional financial systems operating side by side with the Islamic financial systems. The Islamic Financial system […]

The Relationship between Money Supply and Stock Prices Finance Essay

In this paper Rudolph studied on short-term relationship between money supply and stock prices that shows the correlations between changes in the money supply and changes in the stock prices, which was the subject of this body, that first became deceptive for Rudolph in 1967. It was in short-term nature, It believed these correlations signify a new finding in the ongoing investigation into the relationship between money and level of stock prices. For this Rudolph take the data of money […]

Microeconomics Essays