Financial Market College Essays Samples For Students

Essay Question: How different investor types impacts Market Efficiency

Individual investors
When individuals talk regarding marketing efficiency, they simply refer to the degree to which the aggregate decisions of all participants in financial markets are accurately reflecting the value of companies and their shares at any given time (Allen and Gale, 2000, pp. 236-255). Therefore, it requires the determination of the intrinsic value of the company while providing a constant update to valuations because new information is becoming familiar. Consequently, the more a financial market becomes accurate, it will be able to price securities and the more efficient it is said to be. Thus the principle of the ...

The importance of financial market regulation is obvious. Typically, unmanageable markets may not yield results, economically optimal, profitable for both participants of the market and the state. In this case, investors will not make the right decisions about optimal targeted investments and it becomes difficult to reduce the risk level in the whole economy. The danger of unregularly financial market is first of all in the false expectations and great losses for the companies.
If the regulation of financial markets is maintained at the proper level then investments will be apparently stable and economic benefits will only increase. ...

Corporate governance refers to a system in which companies in a given region are directed and controlled. It involves a set of relationships existing between the board, management, shareholders and any other stakeholders of the company. Corporate governance as well is instrumental in the provision of a structure of setting the objectives of a company, the means of attaining the set objectives and monitoring performance of the company. Corporate governance lies on four pillars which include accountability, transparency, fairness and responsibility (Sharar, 8). A corporate governance framework is necessary to safeguard the interest of the various stakeholders in any ...

Impact of sovereign debt on the performance of international equity markets

Introduction
This essay analyses how sovereign debt problems initially faced by a few relatively small economies could trigger a wide impact on financial markets. The impact of the spill-over effect of sovereign debt is examined by using Greece as an example, whose economic GDP is only about 2% of the Euro Zone economy but its debt crisis has had a damaging impact on the financial markets across Europe and other parts of the world as well.
The essay specifically examines the international performance of the bond market, thus analysing the extent to which the poor bond performance of one country ...

Money and prices in the long run and open economies dictate the financial market. As such, that is why factors such as domestic variables and foreign monetary policies are over-emphasized. Demand for money is thus affected by the domestic variables, which include interest rates, price expectations, and permanent income, among others. As such, this paper explores the financial market to reveal the viable strategies the US can adapt to secure reliable money and prices in an open economy on a long-term basis.

The state of US Financial Market

Over the years, the economy of the US has been in good shape, especially when compared to ...

Page

Introduction..2

Overview on the Concept of Globalization3

The Economic Dimension of Globalization 4
The Phenomenon of Globalization of the Economic Activity..5

Indicators of Economic Globalization6

System Structure in the Globalized World Economy8
Global Culture and National Identity ..8

Cultural Globalization9

Conclusion 12

References.13

Introduction
Globalization is “the word most often used and abused, most rarely defined and probably the most misunderstood, nebulous and spectacular, from a political point of view of the last and the future years to come “ (Beck et al, 2003). The subject of globalization gives in to disputes, to passionate reactions, to fears and suspicion, and is invoked as the cause for many of the events and ...

- Discuss how administrative agencies like the SEC or the CFTC take action in order to be effective in preventing high-risk gambles in securities, banking, and foundation of the economy.
The financial market is one of the pillars that make the United States economy a strong and stable one. To be able to contribute to the strength and stability of the economy, the financial market has to be strong and stable as well. There are various organizations that have been established to safeguard that strength and stability, two of which include the Securities and Exchange Commission (SEC) and the Commodities Futures ...

In markets and financial analysis, Efficient Market Hypothesis (EMH) that is also popularly known in finance language as the Random Walk Theory is a phenomenon that gives that the current stock prices fully reflect all and any available information or data pertaining to the value of the firm or company. According to this hypothesis, it is assumed that there is no way an earning of excess profits is possible by the investors when this information is used. According to Mendelker. G, Clarke J & Jandik T, the efficient market hypothesis deals with one of the most fundamental and interesting( exciting) issues ...

Executive Summary

The report comprises of two main tasks that are financial ratio analysis and distress analysis to determine and evaluate the financial performance of HSBC. The case study is prepared to analyze the financial conditions of HSBC. HSBC Bank Plc. is one of the largest financial services providers in the world. HSBC operates in Finance and Insurance industry that is highly competitive in the global market. The decline in values of current ratio, quick ratio, and cash ratio reveals that the company did not succeed in maintaining stability in its financial position, but the decrease of 0.02 and 0.01 is ...

Creativity Fails: How To Wreck The Housing Market

On June 5, 1995, at 11:50 A.M., in the East Room at the White House, President Bill Clinton delivered his speech “Remarks on the National Homeownership Strategy”, in which he stated: “The goal of this strategy, to boost home ownership to 67.5 percent by the year 2000, would take us to an all-time high, helping as many as 8 million American families across that threshold” (Peters, G., & Woolley, J. T., 1995). To facilitate such goal, President Clinton eliminated regulatory barriers and stimulated the financial sector to find creative ways of increasing home ownership of low-income Americans (Rajan, 2010, p. ...

Corporate governance refers to a system in which companies in a given region are directed and controlled. It involves a set of relationships existing between the board, management, shareholders and any other stakeholders of the company. Corporate governance as well is instrumental in the provision of a structure of setting the objectives of a company, the means of attaining the set objectives and monitoring performance of the company. Corporate governance lies on four pillars which include accountability, transparency, fairness and responsibility (Sharar, 8).
The Qatar Financial Market Authority (QFMA) was established in 2009 (Sharar, 8). After its establishment, QFMA ...

Is the “Beijing Model” Applicable in Other Countries?

Introduction
The Chinese economical development is under close examination of the experts across the world as the country has succeeded to achieve the leading positions across the world based on its economical model. Some experts believe that Chinese model of economical development may be applied by other countries, while the opponents to this position state that this approach may exist under the circumstances available in China. Since second half of the twentieth century, Chinese development is featured with permanent growth with annual rate of 10%. In the contemporary economical society, the GDP in the country is higher up to ...

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AIG has been among the leading companies in the insurance industry ranked 14th in the Fortune 500 companies, operating over a decade globally offering various insurance options for companies and individuals including 98% of the Fortune 500 companies, 96% of Fortune 1000, and 90% of Fortune Global 500, and insures 40% of Forbes 400 Richest Americans. With a strong history and reputation in the industry and persistent operations around the world, AIG was believed to be resistant to any crash or collapse. Huge amount of funds in terms of institutional investors, mutual funds, pension ...

Question 1) Forecasting Interest Rates based on Prevailing Conditions:

The decision to consider interest rates rise or decrease is dependednt upon following economic performances:
GDP Growth and Consumer/Business Sentiments:
US Economy is expecting rise in consumer confidence along with strength in business roles citing brightening overseas sales prospects. Current year saw a small increase in GDP of only 1.7% and with ending recession period in Euro Zone and rise in disposable income of US Consumers, economy is epected to sustain a rise in GDP number.

Increase in number of Jobs:

US Economy is still recovering from the nightmares of Financial Crisis and with efforts of Federal Government, economy is expected to reach a sustainable ...

Brand equity is referred to as outcomes that are attached to a product that have brand name compared with the same product that does not have a brand name (Florian, 2012). This means the benefits that a product achieves via the power of its brand name. The brand equity is a significant marketing driver for the business operating in a huge market and via distribution channels in the fast moving consumer products market. This is so because brand equity focuses on drive product and brand investment decisions. Thus, the business should evaluate brand equity as an investment that will receive returns in the future ...

Role of Financial Markets

Financial markets are essential since they act as the agents of economic development in a country (Benito, 2012). This occurs through the support of industrial development, national growth, and entrepreneurship growth in a country. Financial markets play this role by facilitating flow of funds and availing the necessary financial resources, which are essential for economic growth and development. Moreover, financial markets support individuals saving mobilization and investment activities, which contribute towards economic growth. This occurs through the provision of liquidity, which is essential in the process of funds trading, enabling lenders have an access to necessary assets, and making sure that ...

International Investments Diversification

International Investments Diversification
The term global portfolio refers to a group of investments, assets and securities held in foreign markets rather that the domestic market. Traditionally, investors have preferred to focus on international portfolio investment when it comes to the investment in marketable securities. As opposed to the only domestic portfolios, the international portfolio yields more value for the same level of risk. Ideally, an investor should analyze the global stock market to identify the markets that are related to their domestic stock/ securities market in terms of risks and rewards (Agati, 2007). This helps investors reduce their anxiety ...

Currency is valueless, and it is all about the confidence of the people in it. Since the start of the economic crisis in 2007, the Federal Reserve has juxtapositionaly employed conventional and non-conventional monetary policies to caution the effects of such crisis on economic activities and stabilize the financial market. Price stability and maximum employment were necessary for the nation and the world that uses the US dollar as the standard. To achieve this, the Federal Reserve turned to Large Scale Asset Purchases. Although the ends of all the policies formulated are the same, ambiguity shrouds the means to ...

The development of financial markets in a country does increase its productivity. A financial market is a venue for the transfer of funds from those with excess capital or funds to those who are in need of the same. A developing financial market may help an economy prosper and become more productive in several ways. In the capital markets, enterprises wishing to secure more funds for operations and expansion can obtain funds by holding an initial public offering or an “IPO”, thus becoming a public organization. It is then bound by the designated financial and commercial laws of the ...

Brand Audit

Tandem Bank
Tandem is a digital banking start up company, led by Azimo Group. Founded by Ricky Knox and Matt Cooper, the organization successfully drawn its path to th challenging financial market environment in the United Kingdom. The Tandem Bank aims to offer breakthrough innovation into the banking sector, by comprising the market offer whih competes with the giants of the UK banking industry through the digitalized solutions and mobile-centered technology. The Tandem is a fighter from the initial stages of its existence, going after external financing and winning this challenge by attracting over £100 million in investment. In ...

The Consumer Financial Protection Bureau (CFPB) is one of the independent financial regulator institutions in the United States- created by Dodd Frank Act. CFPB operates within banks, mortgage offering firms and even securities firm within the US. This financial protection body was established to restore peace and trust within the financial institution and their customers.

CFPB has a number of goals and missions which are as follows:

The bureau has the obligation to make financial markets work best for consumers. This Act makes sure that consumers are not exploited of their rights. It is also worth noting that, the bureau puts some checks and balances in all the financial undertakings within ...

Discussion 2 - Analysis of Bank of America

Introduction
Listed as one of the largest companies in the world and in the United States, the Bank of America remains to be one of the largest multinational financial and banking services corporation in the world. In 2008 Bank of America acquired Merrill Lynch, it the biggest international wealth management institution.
The company operates in an inherently oligopolistic market, with Citibank, Wells Gargo and JP Morgam Chance being its major competitors. American and global financial industries are typical examples of oligopolies, yet, the company manages to compete with its core rivals with remarkable effectiveness. Having declared  US$15.89 billion ...

Just like John, so many people have failed to see the importance of financial analysis of “efficient capital market” as it will be a waste of resource since the needed information is there for all participants. Perfect market implies that the same expectation on securities are with all participant, this may not be true as trade only occur when there are heterogeneous expectations. There is no explanation on those players who end up being the best profit making, why not equal profit for all participants? The answer to this question and many more shows that there are anomalies of the ...

Many people think that there is no need for financial analysis especially in a perceived efficient capital market. This is a very wrong presumption; there are very many ways in which financial analysis add value to the capital market even when it appears to be efficient. Financial analysts are very important for both the internal and external players in the financial market. As the efficiency of the capital market concentrates on the stock market future prices, analysts do entire analysis of the industry. They take care of the new policies and regulations that may have an impact of the market; they ...

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In marketing, Positioning is a model that creates a framework for the business, and notifies the business about the strategies to be used to market the products or services to its customers. The product or service trademark identification is obtained through positioning, when the product comes into the market. Positioning requires that the business initially differentiates between a product and a service before launching them. Audience plays an important role in positioning, as the marketing teams create promotional activities ...

Kenya is located in Eastern Africa and is considered as the economic hub of the region. One of the most distinctive aspects of the nation is that it has a market-based economy that is accompanied by a very liberalized foreign trade policy. Kenya gained independence from the British in 1963 and since that time, the nation has experienced inconsistent economic growth (Bradshaw, 1988). In fact, during the early years after independence, the rate of economic growth for the nation was very high (6%).However, this rate decreased to about 4% for the following decades. Things particularly got bad for the country ...

Smoking is one of the common causes of cancer in the world today, and it is estimated that 3 out of every five people have a habit (Cataldo et al. 2010). The fact that it involves burning a substance such as tobacco and inhaling the smoke emitted establishes the importance and urgency of analyzing its impact on the health of individuals. It also needs to be highlighted that the habit of smoking is not only associated with the consumption of tobacco, but it is also associated with narcotic substances such as cannabis (Kirk, 1989). It creates an often irreversible impact on ...

The Great Depression

Introduction:
The Great Depression was the longest ever depression felt by the Western World as it spread from December 1929 and lasted till 1939. Although it originated in the United States, but its ill effects were spread around the globe in the form of low production numbers, increased unemployment rates and high deflation rates. In this paper, we will focus on the factors that lead to the Great Depression and will also look for the real reason that forced it to continue for 10 long years.

Causes of Great Depression:

Stock Market Crash
The roots of the Great Depression were laid ...

Thesis

This paper will discuss how capital markets influenced the creation of new economy bubble and the subsequent banking crisis. The first section of this paper will cover the topic of shadow banking and its emergence in United States. The Second section will highlight the phases of Bubble which United States economy went though in between the period of 2000-2008. The final section of the paper will list few reasons which were most relevant in bring the economic crisis and crippling the United States economy for coming years.

Introduction

In year 2007, with the burst of Housing bubble led to defaults ...

INTRODUCTION

Nowadays social and economic development is characterized by the increasing role of the human factor. Today, human capital role takes on a new meaning. In business, it is the main criterion for evaluating the effectiveness of any company in achieving competitive advantage and ensuring qualitative parameters of economic growth, defined as the set of natural innate abilities, talents, creativity, moral, and psychological health; accumulated and improved as a result of investment knowledge and professional experience necessary for purposeful activity in certain sphere of social reproduction, bringing in the income to the owner. Moreover, analyzing human capital it is necessary to pay ...

Chapter No. 1 Role of Financial Markets and Institutions

18. Role of Accounting in Financial Markets
Integrate the roles of accounting, regulations, and financial market participation. That is, explain how financial market participations rely on accounting and why regulatory oversight of the accounting process is necessary.
Monetary market members depend on budgetary data that is furnished by firms. The money related articulations of firms must be reviewed to guarantee that they are faultlessly speak to the budgetary state of the firm. However, the bookkeeping norms are detached, so budgetary market members can profit from solid bookkeeping aptitudes that may permit them to all the more legitimately ...

Complexities of U.S. Financial System
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U.S. Financial System
U.S. Financial System is made up of numerous different markets for diverse products offered on a various trading platforms and exchanges. Among the many products traded are stocks or equities, fixed income securities, foreign exchange, commodities, derivatives etc. Financial market helps to keep the wheels of the economy moving by allowing individuals and businesses either to invest their excess funds in different products or to sell their products to raise cash when they want to. That is the market offers liquidity- the ease of buying and ...

The financial crisis hit the entire world threatening the conservatively stable economies and having negative effects on both the developed and developing nations. Some of consequences still continue to haunt the world today in the wake of the Euro Debt crisis and the financial meltdown in the American economy. These occurrences have triggered a re-examination of the market system with the liberal enterprise system in the United States of America incurring some blame. In reaction to that, the American Congress in 2010 passed the Dodd Frank Wall Street Reform and Consumer Protection Act. The Act among others things introduced tough ...

With increased globalization, international finance has gone a notch further effectively entertaining more financial transactions than has been previously witnessed. This paper will explore the recent character of the financial markets and instruments in the trade. A financial market refers to the environment in which various types of financial instruments exchange hands or transfer possession through legitimate trade. A financial market does not have to be physical in nature. With increased technological applications and a growing need to bridge distances, financial markets have begun to assume a virtual and representative character.
The current financial markets can be categorised into the following: ...

The European Debt Crisis or the Eurozone Crisis of 2007 up to the present time is considered as one of the major declines of the European market since the inception of the European Union in 1993. What was considered an ideal move to unite the integrating the European countries into one currency, it became a disaster that has made these same integrating countries experience bankruptcy due to the depreciating rate of the Euro. Not only did the crisis escalate into financial debt and economic instability, it had also influenced as to how the European Union competes with the international market ...

Introduction

Levi Strauss & Company is a firm that is widely known across the world. Its production of Jeanswear that is common among blue collar workers has expanded the popularity of this company across the globe. It is therefore important to have a brief profile how the company has over the years increased in size to become what it is today. First of all, Levi Strauss Company was established in 1853(Weidt, 1990, p.113). The company was founded by Levi Strauss who was an immigrant in the United States. The favorable business environment made it possible for Strauss to begin his first business ...

Financial crisis is a situation in the economy of a country where the supply of money to the economy is over powered by the demand of money (Cali & Kennan, 2010). This situation causes deficits to the providers of money like banks where they are forced to sell their securities to get money and allow it to flow in the economy. The world has faced a financial crisis in the recent past, which was triggered by several factors. In this essay, we are going to look at this recent financial crisis and its aftermath. We will also look at what triggered it and ...

The recent global financial crisis began in 2007 and was triggered by a given sector of US housing finance market. The financial crisis has affected countries around the world and has extended to the economies of these countries. “This made the policy makers in different countries to take actions geared toward reforming international standards and to ensure a reliable international financial regulatory system”1.

Countries Regulatory Response to the Current Financial Crisis

United States

In the US, The financial crisis weakened the financial market and led to the drop in stock value for major banking institutions. This affected the investors’ confidence greatly. Banks increased their interest rates ...

STATEMENT TO BE SIGNED BY EACH STUDENT

1. I have read the section on plagiarism that appears on the reverse side of this sheet.
2. In my assignment I have carefully acknowledged the source of any material which is not my own work.
3. I am aware that the penalties for plagiarism can be very severe, including withdrawal of permission to enrol in the University.

REVIEW ESSAY QUESTION (20% of Unit Marks, 1,500 word limit)

Using the two papers by Rousseau and Sylla, what lessons can be drawn by emerging markets economies from the experiences of the countries covered? In your answer, include issues relating to the creation of a viable financial system (and the ...