Essays on Capital Market

IPOs

Abstract Large and small business move to expand their business by increasing funds through issuing shares. The reason to go public is that it opens up many financial doors as it raises cash. Therefore, companies trade in an open market to attract maximum investors.It can be explained in a way that if a company issued its stocks to the general public for the first time, the capital structure of the company changes that is it mainly begin to rely on debt for finance. TESCO Plc is one of those companies which in the list of world’s largest retailers. ...

Abstract

The given case study discusses the rise and fall of Nortel Networks Corporation, which was one of the world’s largest telecommunication corporation. Nortel was a Canadian global organization that was at its peak in the early 2000s and apparently, it botched due to inefficient echelon management, inflated earnings and costs, dysfunctional directors’ board, as well as, illusion of constancy and stability. Although there were numerous possibilities that could have been adopted to prevent the fall and demise of the company; however, those roads were unfortunately not traveled. Nortel’s downfall began when it fails to live up to ...

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 ...

Business Risk

This risk or uncertainty concerns that an organization may witness decline in profitability or might suffer from losses in any financial accounting period. Business risks originate from different uncertainties such as changes in consumer tastes, change in preferences and buying behavior, modifications to government policy as well as increase in intensity of competition etc. business risks also stem from those unforeseen or unexpected events that may cause a business to fail in future . Business risks are not just related to an organization as a whole. Different departments of an entity face numerous business risks that are unique to their ...

Introduction

The capital market is a wider portfolio market that deals with securities. The investment banking process provides a platform for the securities trading. The investors are provided with an opportunity to choose the appropriate financial instrument to choose. The portfolio management provides key elements that are applied by the investors in understanding the capital investment market. Therefore, the study seeks to explore on capital market investment and investment banking.

Portfolio and investment banking process

Investment banking process involves financial institutions that provide assistance to individuals, corporations, and governments in achieving and raising financial capital. This is through underwriting or taking part as the agent ...

The Finance Department of firms provides correct and appropriate sources of equity capital for any new venture or start-up business to begin their operations. Any entrepreneur interested in new venture stocks up the equity capital provided by the finance department of strong firms or individuals and begins the operations. Equity capital is defined as capital cash that is free of debt provided by the business or investor to start the operation of any company. Equity capital investment done by the firms is in the form of issuing shares of the company to the firm who invested in it. Firms ...

Financial institutions and financial markets play a massive role in guiding the international economy. The financial industry is the purveyor of credit in the market, allowing individual investors to prepare for their retirement and consumers to purchase homes. The financial industry also works closely with the central banking system of the countries they are located in through legislation and interest rate control, directly relating them to the machinations of the central banking authorities. The roles of financial institutions have changed over time, developing as economics advanced and more needs accrued. Banking institutions were originally created for people to store ...

Personal Statement

I have been interested in public and administrative work since my early years in school. I believed that I always can find the right way how to deal with arising issues and manage people to act accordingly. I was fascinated about being a leader and making people reach the common goal. Therefore, I decided to follow my vocation and choose Human Resources and Public Administration as my majors. I got my Bachelor’s degree in Business administration of Human Resources in Saudi Arabia. King Abdulaziz University provided me with great knowledge about management of labor force in business. My ...

It was a few years back that the United States market capital saw the domination of financial fraud revelations performed in so called big Companies of the economy. The stakeholders of the Companies like investors, affiliates in the market, and communities had to incur huge historic losses. The top notch corporate leaders were also the ones affected. The corporate veil was lifted in most cases and many of them had to suffer jail term. Industries were affected in the sense that many big names in the industry, including the biggest American audit firm were desperately out of business. The ...

Abstract 2

Introduction . 3 Lessons from Capital Market History . 3 Return, Risk and the SML .. 5

Cost of Capital 7

Financial Leverage and Capital Structure Policy 9 Conclusion 11 Abstract This paper entails a critical analysis and discussion of the components of the corporate finance and its subsequent application in the contemporary business environment. The discussion and analyses contained in this paper are centered on the book by Ross, Westerfield and Jordan (2012) which is titled: “Fundamentals of Corporate Finance.” In this book, different aspects and components of this subject of corporate finance have been discussed in great depth and this paper essentially entails ...

Introduction

The concept of economic development has received tremendous changes since the pre-colonial era, a feature that seeks government intervention to enhance growth. These changes have an implication on the role of the government in developing effective programs to enhance economic development in a state. Economic growth prospects are achieved through efficient allocation of resources, which are the main factors that steer production by moving a country from low productivity to high productivity. However, the desire to experience rapid economic development goals is often hampered by existence of rigidities, which are either in technological or institutional forms. Therefore, the sector ...

Introduction

Money plays a vital role in the determination of income and employment . interest rate are a significant determinant of aggregate spending ad the Federal Reserve which controls the money growth and the interest rates is the first institution to be blamed when the economy of in trouble. Now the question arises what is money.

Money Definition

Money is a medium of exchange. Money is divided into commodity money and token money. To some economist there is difference between commodity money and token money. A commodity money is a medium of exchange which has a commodity value as distinct from a value ...

The economics and analysis is used by the board to covey the oversight tasks. On the other hand the Center of the economic and Analysis fosters the academic research during the capital market audit and also performs the necessary economic analysis when auditing the impacts of PCAOB as well as other similar professional practices (PCAOB n.p.). The analysis began in 2014 and its key role is to advise the board and PCAOB staff on the importance of the capital information audit as well as the protection of economic audit and analysis. It also provides ne3ccessary information on how the ...

When the Genius Failed-The Rise &Fall of Long Term Capital Management (LTCM) provides in depth insight into the world of hedge funds (Lowenstein, 2001). It outlines useful lessons to investors by illustrating the way capital markets can be severe on individuals and entities that have reduced capital markets to precise mathematical and scientific analysis. The text explores who the leading characters are, how they grew, marketed and managed the long term funds, and the factors that led to their collapse. Ideally, the author attempts to make complex financial concepts and structures easy to understand. The book provides examples suggesting ...

**Business 4465**

Be sure to put your name and student number at the top of the email attachment. Your document must be less than 10 typed pages. Please read the questions carefully. Write all you answers in a word document, label all questions carefully. The best answers are those that answer the questions well and concisely using material within the scope of the course and not irrelevant material from other sources or from the internet. Answers that are beyond the scope of the course will receive no marks. Answers that are not written in the own words of a ...

Risk is defined as uncertainty in broad terms. This uncertainty can be due to a large number of factors, which depend on the type of risk. Some of the common factors which result in this uncertainty can be changes in input parameters, miscalculation of parameters etc. (Kuritzkes, Schuermann, & Weiner, 2002). Risk can result in large and unexpected losses and can really hurt the profitability of companies. However, risk is not always bad and little bit of risk can lead to better financial results. However, the relationship between risk and better results is a lot more complex and depends on ...

Communication Plan in the Training

In an attempt to do an overhaul of the organizational systems, an adequate training plan is required. This makes the ultimate result of the training process to be effectively achieved and thus enhance adequate transfer of knowledge. Very proper channels of communication are required in the bid to make a training plan to be effective (Chasen & Putnam, 2012). The main reason for the establishment of proper communication plans is to ensure that each and every member of the organization reaps the maximum benefits out of the training. Several communication modes can be employed when executing the training plan. First, ...

Israel Capital Market

- The Banking Sector - General Description The banking sector in Israel is unique in nature comprising of high concentration and less competition. According to a report by the Bank of Israel increase in concentration in the banking sector in the country is a trend that commenced from 2011 after a period of reduced concentration between 2004 and 2011 (Aizescu, 2012). The high concentration levels in the Israeli banking sector is classified under “large monopolies”. This is because a significant proportion of the sectors in lie in between monopoly and free competition. This is the situation in Israel ...

Introduction

A tax is a financial charge levied upon individuals and entities’ incomes by the state. Taxes are mandatory in every economy for governments to be able to finance basic provisions such as for their citizens. These are security, employment, health care, infrastructure such as roads, and other socio-economic programs just to mention a few. Though taxes are unpopular with the masses, the idea of raising taxes on corporations has both advantages and its disadvantages. With the current fiscal cliff challenge brought about by the expiry of the Bush Tax Cut facing the U.S. economy, democrats argue that tax increments are necessary ...

- Introduction

1.1 Background developments

Traditionally, accounting standards have been developed by different countries on the basis of local legal, economical and cultural institutions frameworks (Elliott and Elliott, 2009, p. 158). As a result, the standard setting was very country specific. With the globalization process at work for the last 3-4 decades and increasing mobility of capital internationally accepted accounting standards have become necessary to facilitate cross border transactions and make financial reporting comparable between countries and companies thereby leading to a greater transparency for investors (Nobes, 2004). IASB has been set up as a private international standard setter with a mandate to create high quality accounting standards ...

Executive Summary

The purpose of this research is to try and examine factors that influence business performance of SMEs. The aim of this study is to give the seeing on how individuals ought to begin their business by taking an evaluation at all the elements affecting business performance. Thus help to lessen the danger of disappointment and expand possibilities of success. The study inspected eight variables that impact the SMEs business achievement. These components are SMEs trademark, administration and expertise, items and administrations. (SMEs) Is acknowledged internationally as an apparatus for enabling the citizenry and economic development. It has been connected ...

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 ...

Introduction

Comparing stock exchanges from two countries at different stages of economic development is an interesting case, because it can show what aspects of capital market theory have universal application and what the limitations are. In addition, recommendations could be made for a developing country, based on the example of the developed one. With this perspective, the report reviews the business and regulatory developments of the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE) as well as assesses present challenges facing them. All stock exchanges function within the economic, regulatory and general institutional frameworks of their countries, therefore a brief ...

Introduction

Every decision established in the company has a decision that involves the use of funds this is referred to as a financial decision. In the process of making financial decisions, the conventional corporate finance theory assumes that the main objective is to optimize the value of the company, which is referred to as maximizing shareholder wealth. Since the key objective in the corporate finance is to optimize company value, any financial decision that increases this value should be regarded good, while that reduces value is deemed poor. Therefore, the value of the company is determined based on three main financial decisions ...

1. Define a MSA A metropolitan statistical area refers to an urbanized area which may be a county or a group of counties containing diverse population of not less than 50000 people. This area is associated with commuting effects, high social and economic integration.

2. Interpret Figure 1 (using descriptions on A3) for growing cities. The figure shows both the shrinking and the expanding cities in the metropolitan. It shows the was a high peak in respect to the population density was at the peak for the towns at the outskirts of the capital city in 1986.This figure therefore shows the ...

I came to the United States in 2009. I was deeply shocked by the stack contrast between my culture and the United States culture. The Americans had a unique culture. Most of them were always challenged by everything around them. No sooner had I started interacting and mingling with them, than I was assimilated into their culture of tackling challenges as they emerge. For sure within no time, the challenging spirit became one of most precious treasure. By 2011, I was in a position found an auto trading company in China with two partners. I became the vice manager of the ...

A public corporation is an organization that is formed by the government to perform certain functions. This corporation has many advantages. In the first place, the corporation has finance to acquire the best management personnel. Therefore, the organization has the ability to perform well due to good management.

Public corporations have no limited life. They are initiated to perform their activities and they cannot close easily unless the government decides to do so. The corporations have a good capital base. It can be able to easily access funds to increase its investment hence expand its activities. When the corporation is ...

What makes every nation distinctive from each other is that they posses their own principles to be adhered to in every feature. International business practices are entirely not an exception to that particularly; many corporations are target to enter the global market to discover additional paths for profit.

Therefore it is understandable for my client, MNC to do the same. In order to sufficiently advise the client, it is apparent that we first analyze the situation in Latin America and weigh options. Latin America is universally professed as an unstable business setting. It is hopeless to try to dispute ...

NPV

NPV (the net present value) is used to calculate, and analyze how much is a project is useful also to find out the difference between the present value of cash inflows and the present value of cash outflows. Also, we should know that the NPV analysis is sensitive when we calculate the future cash inflows for the project's revenues. Simply the NPV method shows whether we should undertake a project or reject it; it is useful to make decisions and it is easy to use. According to the primary investment rule, if the NPV is positive that means the project ...

Capital Asset Pricing Model

The primary role of capital market is allocation of ownership of the economy’s capital stock . Capital market theory extends portfolio theory and develops a model for pricing all risky assets. Capital asset pricing model (CAPM) allows determining the required rate of return for any risky asset. CAPM offers powerful and intuitive pleasing predictions about how to measure risk and the relation between expected return and risk. It is widely used in application such as estimating the cost of capital for firms and evaluating the performance of managed portfolio . CAPM has been the basis for calculating the required rate of ...

The new Era of Stock Trading

The videos discuss as how the human mind is getting evated from trading activity on Wall Street and is rather performed by high performing super computers which have the capacity to trade billions of stock, even before a blink of a human eye. However, these super computers works on programming of math wizards and are not aware of the value of companies for which they are trading. Thus, the Securities Exchange Commission and Members of the Congress Senate has raised some questions against suitability and usefulness of these machines in stock trading and also alleges that some institutions might be using ...

Addressing the key issues of financial reporting such as (IFRS foundation, 2011, p.A17) including the objectives of the financial reporting and qualitative characteristics which make the financial statements useful, the Conceptual Framework was initially adopted by IASB in 1989 and subsequently updated in 2010 through a joint project with FASB. As stated in the IASB’s Conceptual Framework, its primary purposes include (IFRS Foundation, 2011, p. A16) providing theoretical underpinnings to IASB in setting future standards as well as in review of existing ones and promoting harmonization of accounting standards through eliminating alternative treatments currently allowed. The importance of ...

The article provides in-depth information on Egypt’s effort to reinforce its accounting and International financial reporting standards (IFRS) over the last twenty years. Egypt’s decision to liberalize its economy has indeed created more benefits for the country and this has allowed it to become a dynamic market economy incorporating both the private sector as well as the global economy. Subsequently, the Economic liberalization enabled the reactivation of the securities exchange market and the establishment of a privatization program. As a result, Egypt sought to integrate the International Financial Reporting Standards in order to enhance the efficiency and effectiveness of various ...

The interest rates for the central bank of Kenya have had different faces since 1991 with the rate changing as the economy of the country keeps on shifting from worst to best. At the moment, the exchange rates in Kenya stand at 8.5 percent as compared to that adopted by the Federal Reserve System (FED) of America which stands between 0 and 0.25 percent. From the year 1991 to 2014, the average exchange rate for Kenya is 14.62 percent. Kenya recorded a record of 84.67 percent in July 1993. At this time, the FED was enjoying the exchange rate of ...

[Client’s Name]

Globalization: A step towards or against economic progress?

Globalization refers to the integration of national economies, trade, technology and power. Globalization has resulted and progressed due to the number of factors. The expansion of the internet has played a very vital role in stretching the trade boundaries across nations through websites as common as amazon.com and ebay.com. It also, of course, is contingent upon the imposition of import and export taxes. Through the support of the IMF (International Monetary Fund), and the (WTO) World Trade Organization, most counties are taking steps towards facilitation of global trade most commonly through decrease in tariffs. Globalization could be ...

Introduction

Neoliberalism is a form of economic liberalism that offers support on free trade, deregulation, privatisation and reduction in government spending with the aim of enhancing the role of private sector in the economy. Privatization focuses on transferring the control of a given economy from public sector to the private sector. The policy does this with the aim of enhancing efficiency of the government, economic growth and development of the nation (Harvey, 2005). It is also an economic policy that focuses on monitoring the flow of the market economy thus playing a role in intensifying and expanding the market. It does this ...

Corporate Ethics; Dynegy Case

Ethical practices and behavior play a crucial role in any organization. The ability to distinguish the right act from the wrong activities enables individuals in a firm to improve themselves both personally and professionally. Companies today invest the huge amount of resources on developing corporate ethics; this measure increases their ability to achieve the set organizational goals. Corporate ethics entail the effort to create a healthy relationship with the company’s stakeholders to enhance efficiency. An analysis on the Dynegy Inc case of 2012 reveals the importance of upholding effective corporate ethics. The company faced losses once the stakeholders sued the corporate ...

Capital market can be defined as a market wherein sellers and buyers indulge within trade of financial securities such as stocks and bonds. In capital market, participants like institutions and individuals carry out the selling and buying. Capital market comprises of secondary and primary markets. Secondary markets involve the exchange of previously-issued or existing securities, whereas primary markets handles the trade of new or novel issues of stock as well as other securities. Capital markets assist channel excess funds from savers or investors to organizations, which then invest such funds into productive use. Overall, capital market trades in securities of ...

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 ...

Factors that Determine Stock Market of Corporations

Abstract In this paper, I look into capital markets in general describing them as markets in which financial securities are traded. The capital market instruments differ from money markets in that they take longer to mature, a year or more, as opposed to money markets (Martin, 2013). They are also a source of income for the investors who earn when the stocks rise in values. I will also look into services offered by capital (krani, 2010). Most importantly however will be a cross-sectional study on financial market trends in the stock markets and the capital market of corporate companies. Under ...

Being the largest Middle East economies, Egypt is starting its changes in the market economy. It has experienced significant changes in its accounting system in the last two decades. The evolution of accounting in Egypt demonstrates its capability to adapt in response to changing conditions. Meanwhile, various cultural aspects have greatly influenced accounting practices in Egypt. Although Egypt is leading Middle East economies, it has experienced cultural mistakes and challenges in transforming its accounting systems and standards. Thus, this paper will discuss cultural challenges and mistakes that Egypt has encountered in the process of changing its accounting systems and ...

Abstract

Mexico is the world’s 12th largest economy in terms of Gross Domestic Product ($1.657 trillion), growing at an average rate of 3.8% annually. With a 47.7 million labor force, Mexico has GDP per capita of $15, 100 which is the 81st highest in the world. Mexico’s leading industry include food and beverages, tobacco and cigarette production, chemicals, iron and steel manufacturing, petroleum, mining, textiles, clothing, manufacture of motor vehicles, consumer durables, and an active tourism sector. Ninety percent of Mexico’s trade is under free trade agreements with countries from the whole North America, most of Central America, ...

Foreign aid is still the largest external source investment for most economies. At the recent UN convention on least developed countries in 2011, there were calls from several quarters to increase this type of investment . Has foreign aid encouraged (under)development in Africa? With over a half century since the aid model of foreign investment was introduced in a largely post-colonial Africa, the continent has nothing to show for it economically . An estimated $1 trillion has been injected into the African economy in the period, but the ultimate result has been that the economic situation of African nation is getting worse ...

Introduction. 3

Expansionary monetary policy.3 Contractionary monetary policy3 Australian monetary policy3 Objectives of Australian monetary policy.4 Australian Monetary policy framework4 The decision process in monetary policy...5

Monetary policy implementation in Australia5

Transmission of Monetary policy to Australian economy.6 Conclusion .7 Introduction The monetary policy is a policy that is used by the monetary authority of a given country to control the money supply in the economy. This policy frequently targets a certain interest rate with an objective of promoting economic stability and growth in an economy. The official goals normally include relatively low unemployment and stable prices. This policy can either ...

Summary of Chapters

Chapter 7: Mathematics of Investing

One of the return measures used includes compounding. Compounding can be done arithmetically or geometrically. In order for one to determine whether to use arithmetic compounding or geometric compounding one has to take into account the future value of what is to be estimated (Evensky, Horan, and Robinson 122). Arithmetic compounding is best used when determining the estimate of the anticipated future return for the following year when there is no other information. The geometric compounding is best applied when determining the anticipated return over many periods.

Covariance

This is applied when investments in a combined ...

Capital markets are markets in which institutions and individuals buy and sell financial securities. Capital markets channel funds from wealth savers institutions that need funds for long term investments. Capital markets comprise of both the equity and debt markets. Investors participate in the capital market in order to maximize their wealth by buying, holding and selling financial securities in order to take advantage of price fluctuations in the capital market. There are various theories that have been developed to explain the performance of investors’ portfolio. One of the dominant theories is the efficient market hypothesis. This paper discusses the ...

Introduction

Capital One Financial Corporation is a financial company which specializes in the offering of banking services, specifically credit cards, home loans, banking and savings products and auto loans. It is a member of the Fortune 500. The company was founded in 1988 and has since grown in stature by conducting several acquisitions over time. Some of its notable acquisitions are the acquisition of Chevy Chase Bank in 2008 and Hibernia National Bank in 2005. The company has two main divisions; auto finance and international operations. The company trades in the NYSE as COF (Capital One Financial Corporation website). This paper ...

The European sovereign debt crisis dominated international financial markets during 2010-2012. Economies fell into recession and financial market volatility was high. Critically analyze how the government debt problems initially faced by a few relatively

Introduction

The European financial crisis has extended beyond borders and is now affecting other countries in various condiments. China and United States of America are the most affected nations because they depend a lot on European countries for exports. The world is facing a critical problem brought about by the financial crisis, and financial experts are yet to determine the solution to this problem. The global economic meltdown of ...

Introduction

The European financial crisis has extended beyond borders and is now affecting other countries in various condiments. The world is facing a critical problem brought about by the financial crisis, and financial experts are yet to determine the solution to this problem. The global economic meltdown of 2008 found the European Union struggling with the unshakable financial crisis that has been slowing the growth of European currency, the Euro. As the crisis enters its third year, the European and the whole world is worried whether it would end up affecting the world economy leading to world financial crisis (European Commission ...

Introduction

Bank of America is one of the best managed institutions in the world that provides a variety of financial services to the customers. It deals with different types of customers such as corporations, the government, and individuals, small, middle and large sized businesses. The bank serves over 40 countries which show that it is a well established institution in the international market. Some of the services it provides include accounts deposits, financial advice, credit and debit card services, checking accounts and lending facilities in sectors such as real estate investment. The bank provides these services with the application of modern technology ...

Abstract

In this document, unique data was utilized to determine the correlation between financial reporting quality and the dividend policy of a firm. Financial reports pertain to any and all disclosures made by firms to report current performance and direction. The quality of financial reports is critical because it drives capital market decision makers significantly. To test this hypothesis, data from fourteen Kuwaiti real-estate corporations were collected and analyzed. The dividends dispensed by these companies were analyzed against their reported Net Income, Total Revenue, Total Assets, Total Liabilities and free Cash. Regression analysis was conducted and the results were analyzed.

The ...

A good investment portfolio requires proper investment decision based on the past, present and future market trends. This calls for thorough analysis of both the industry and the individual investment in order to ascertain the portfolio’s viability and profitability. This paper therefore highlights the investors’ profiles in the USA’s capital market and considers the current capital market information of the USA to help in building an investment portfolio.

The United States Capital Market is the world’s largest capital market with seven sectors and six categories of instruments.

The main sectors or the players are: Households, fund managers, corporate managers, bankers and brokers, foreign investors, insurance executives, and government officials. The securities (securitized instruments) include corporate equities, ...

Abstract

In the past, the international financial markets have had diverse ways and means of achieving their financial satisfaction and objectives based on different operation platforms. For this reason, there arose challenges with integration of different financial systems without a common platform. This led to most countries modifying their models of international finance for them to remain competitive in the market as well as possibilities of investing in new markets and having investors from anywhere in the world invest in their financial system. For example, Japan’s - GAAP financial system has in the recent past been harmonized with that of ...

Special Topics

Question 1 Change in corporate control refers to transfer of the decision making authority of a company from one group of persons to another group. This power entitles individuals to make decisions concerning operations and strategic planning of the company, allocation of capital, acquisitions, marketing decisions and production decisions. Publicly traded companies are prone to corporate control changes when large investors, especially institutional investors and other companies, strive to seize control from existing shareholders and managers. Change of corporate control can be effected through; tender offers, negotiated offers and proxy fights . Negotiated offers are the process by which ...

PART I

Forward contract: This is a type of a derivative contract that involves an agreement between parties on the rate of interest that will be applicable to specified national loans or deposits within a specified time period. The aim of this is to offer the borrower protection against the uncertainty that may result from unexpected rise in the interest rates. For instance, farmers face a significant price risk resulting from the fact that they do not know the price their products will sell at come the harvest time (Melnikov, 1999). The uncertainty resulting experienced in the farming sector may be as a result of the ...