Essays on Securities Market

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 ...

Introduction

In late 2007, the Dow Jones Industrial Average (DJIA) closed at a record low. Stock markets around the world nose-dived alongside the DJIA. Turbulence in the sub-prime segment of the US housing market, paralysis of the credit markets, excessive lay-offs in organizations, steep decline in investments etc. were all some of the indicators that the world was heading for a massive credit crunch. In the words of Mr. Strauss-Kahn, head of IMF, “Intensifying solvency concerns about a number of the largest U.S.-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown” (BBC ...

The Qatar Stock Market

Before discussing Qatar’s stock market, let us gain some relevant information about the country itself. Qatar is located in the continent of Asia and covers over 11,000 square kilometers of land which makes the country the 168th largest nation when looking at land area. Qatar became an independent state in 1971 gaining its independence from the United Kingdom with a population of 1,951,591 people in 2012. The currency is the Qatari Rial (World Atlas, 2015). When viewing the stock market, there is information that every investor should know about Qatar before investing in the market ...

Financial crisis of 2008 was caused by one of the biggest managerial mistakes, and some people think that the crisis is not over yet. The financial crisis of 2007-08 was caused because many wrong decisions were made by the top managers of Wall Street banks and institutions, and government officials that tried to support the shadow banking system. Before the crisis, Wall Street banks and funds were trying to maximize their revenues, and they found some gaps in the existing regulations, which helped them trade high-risk securities with almost no limitations. Some banks and funds have invested billions into ...

Introduction

In 2008, the entire world was rocked by the biggest financial crisis since the Great Depression. The crisis first affected the entire financial system of the United States before then quickly spread globally. The casualties of the crisis included the whole investment banking industry of the US. Other casualties were the US largest insurance company, largest mortgage lender, among other firms in the financial services sector. The US auto industry was severely hit leading to loss of jobs. The US unemployment rate increased by 4.9% points from the third quarter of 2007 to the third quarter of 2009. The ...