Essays on Stock Market

1 While much has been hypothesized regarding the true meaning of the term idea multiplication, it is essential to note that it refers to all the processes involved in the use of existing ideas to develop newer ideas that are more important. These processes do not occur in isolation, but calls for brainstorming of the existing ideas with the sole aim of restructuring the existing idea by adding or removing certain feature. Notably, idea multiplication is advantageous in a number of ways. Above all, it is often easier to devise new ideas from existing ideas. In addition, it suits well ...

Introduction:

The analysis was conducted so as to study the behavior of two stocks i.e Commonwealth Bank of Australia and ABM resources. We began our analysis using various financial and government websites. For Instance, the risk free rate was derived from RBA, Australia using 30 Day Bank Accepted Bill as a proxy. On the other hand, all the stock related and market index(S&P 500-APX 200)information was derived from Yahoo Finance. We concluded the report by conducting a regression analysis between the excess return of each stock over risk free rate and excess return of market index over risk free rate

Stocks Analyzed

...

Question one

Capital budgeting is a process that may be defined by proper understanding of the terms; capital which means the initial investment needed to kick start a business activity and budgeting which is the process of aligning resources to meet a given business goal. Capital-budgeting may be defined on the bases of the goals of a project, which are supposed to define the value of a project to the firm. Proper understanding of capital budgeting decisions is helpful in definition of the strategic decision of a firm.

Various processes should be taken into consideration while defining the use of capital-budgeting process useful in defining projects ...

White collar crimes are unethical or illegal acts that infringe public trust or the fiduciary relationship that exists between members of public and organizations or individuals in organizations for the benefit of the organizational or personal gain. Ponzi schemes are white collar crimes because they are often committed by people within organizations or people who create organizations with the aim of committing financial fraud.

A Ponzi scheme is a fraud relating to investment where investment organizers make payments of alleged returns to current investors from funds that new investors contribute. The investment organizers usually attract new investors by undertaking ...

VaR calculations are becoming increasing important for all the investors, bankers, and regulators. There are several ways to calculate VaR; the historical method, the Variance – Covariance Method, and Monte Carlo method. In this analysis, we will use the returns of stocks from Dow Jones Industrial Average for the last 40 years in order to make a comparison between different VaR calculation methods. We will try to determine how that observation time, normality of the data, time frame, and variation of the data influence different ways of calculating VaR.

Implementation of Historical Methods

Data

Historical simulation is one of the popular methods used in ...

Callable preferred stock is a kind of preferred stock in which the issuer has the right to redeem or call in the stock at a price which is preset after a specific date. All terms involved in a callable preferred stock issue, which include; call price, the call premium, and the specific date after in which the stock can be called are all well defined in the prospectus provided at the time of issue and can, therefore, not be altered afterwards. Companies and corporations have various reasons for issuing preferred stock which differs from one company or corporation to another.

Why do Corporations Issue Such Stocks?

One of the ...

A cashflow statement outlines the fluctuation in the cash resource of a company rather than the change in working capital. This includes the cash inflows and outflows of a company within a fiscal period. Unlike the income statement or balance sheet the items recorded in the cashflow statement are different from those recorded in any other financial statements. The beginning and ending balances are adjusted according to the changes which take place within that reporting period. The main purpose for the construction of this financial statement is to clearly identify the changes in cash or cash equivalents for one fiscal year. However, ...

ABSTRACT

The aim of this dissertation is mainly to analyzethe risk in the New York Stock Exchange using Statistical aspects and the computation of Value at Risk. The technique of Value at Risk or Value at Risk (VaR) is a methodology to standardize the calculation of the various risks that occur in a business e.g. banks, stock exchanges and corporations. The risk is defined as the probability of obtaining a result different than expected, the factors that will depend on the position of the entity, the risk factor under consideration and the time of calculation. Thus, the VaR seeks to establish quantitatively the ...

According to the Reserved Bank of Australia (2009), the country was not materially affected of the global financial crisis. Based on the record, dated on September 2008, the local banks have met the level of performance. It is also concluded that they perform banking strategy better than with offshore banks because they come up with a more systematic financial scheme.

With the previous financial record, they’ve manage to assess the difference of their economy and the factors affecting the entire financial status. Although, over half a year, the net return profit of bank’s equity is decreased to approximately ...

Introduction

International bonds are issued in a country by a foreign entity. Therefore the bond is traded across national boundaries i.e. in different capital markets. Both government and company bonds can be traded in foreign markets. International bonds are classified as euro or foreign bonds International bonds have been inexistence since 1820 where railway companies and Britain government were the main operators. Recently international bonds have spread globally. They have been facilitated international capital flows. (Moorad , 2001)

This is bond issued and traded within the European market. The bonds are freely traded without any country imposing its regulations. They attract interest ...

As compared to the right issue, the fund collection through bonds or loan notes is cheaper and quicker for the management of the business. Investors can sale or purchase bonds or loan notes issued by the listed companies in the stock exchange or bond markets. Therefore, the issuing of bonds on short term or long term basis is the most attractive ways of raising funds. However, in the calculation or estimation of the bond face value and the coupon rate, the market interest rate plays an important role. There is a strong relationship between bond prices and market interest rates. If ...

The great depression was a period from 1929 to 1939 that was characterized as the darkest economic times in the US history. The depression period was kicked off by the crash of the stock market on Wall Street in October of 1928 wiping out millions of investors.

Cause

In 1929, the market entered an ordinary recession where there was a decline in consumer spending and an increase in products. However, stock prices continued to rise and had reached a level that could not justify future earnings. As a result, individuals who owned the shares began to panic and informed their brokers to sell. It ...

Investing in the other countries provides several benefits to the investors, which include attractive, and more returns and the diversification opportunity. The introduction of the investment products has now made the assessment of international markets easier (Agarwal & Ramaswami, 1992). But, at the same time it is essential for people who are making investments overseas to have the basic idea and understanding of the working of international markets.

Being CEO of the organization based within the United States, I will invest in China. This is due to the fact that the economy of China has huge potential; it provides ...

Question 1

A state government has powers to carry out any political process, which is beneficial to the public and the entire economy. Domestication is a move by the government to control and utilize its local resources for the purpose of creating independence. This process is important for the nation since it prevents exploitation from foreigners. On the contrary, domestication plays an important role in improving the economy through exportation of goods. Expropriation, on the other hand, will entail taking control of privately owned property by the state government for public interest. This move will negatively affect the economy as it discourages ...

Abstract

This report includes the example of Deutsche bank in which the bank is accused of publishing a poor audit report with false figures and inadequate material to made analysis. The paper talks about the importance of the Risk, risk management, disclosure of the risk and the ways to disclose the corporate risk to decreases the impact of it.teh report includes the way through which the display of the information in the report affects the performance of the company. There are many ways through which good reporting can be achieved with even poor digits. The importance of the discloser in the ...

Lysine

Amino acids are organic molecules, the monomers of proteins that contain both amino and carboxyl groups. Proteins of a cell mostly contain 20 types of amino acids that differ in the side chain known as R group. Therefore, the properties of the amino acid in protein fully depend on the characteristics of the side chains.

Lysine is an essential amino acid, that means it cannot be synthetized in the human organism. The side chain of the lysine molecule contains an additional amino group attached to the carbon skeleton. Because of the positive charge in the side chain, the charge ...

The process of DNA replication at biochemical level

DNA or deoxyribonucleic acid is a biopolymer that encodes all the structures needed for the organism’s lifespan and development. In a cell it is located in the nucleus, mitochondria and chloroplasts. DNA consists of four types of deoxyribonucleotides, the sequence of which is used to store the data.

The essential characteristic of DNA molecule that allows it to pass the stored information to the next generations of cells or organisms is the way of self-reproduction known as replication. The molecule consists of two complementary chains that are held together with the help of hydrogen bonds between the complementary bases. ...

Fiscal planning is the means of ensuring that one is making the best use of his or her money and help individual to prepare for their future. The planning may involve a range of activities, with strategies ranging from the short-term to the long-term (Garman & Forgue, 2011, p.21). A person may want to create a budget to enable him or start saving towards a future purchase, or they may be more concerned about guaranteeing their future financial security through retirement planning. Financial planning prevents a person from overspending by crafting and sticking to a sensible budget. It can also help people to avoid accumulating ...

Ewert (1989), argues that, within their thoughts, the morality and justness of an economic structure are significant than its efficiency (p. 103). This appears to be logical, considering how inefficient and bloated the national budget, the economy, as well as the stock market are in the current era. The stock market currently is indicating a high record, on the contrary the economy continues with a turndown trend. The stock market, in addition, is extremely connected to the world market, making it inefficient and more precarious.

Ewert (1989) is to the opinion that market ought not to be judged via moral ...

The globalizing world has led to the increase of foreign direct investments (FDIs) from multinational corporations (MNCs), particularly in nations that are technologically backward. In turn, increasing FDIs have resulted to technological advancements, which owes to technological spillovers. Therefore, there is an understanding that technological spillovers have come from MNCs, which increases alongside their increasing presence and activity. However, concerns over the viability of the existing framework for determining technological spillovers vis-à-vis MNCs have grown, mainly because the predominant framework characterized by theories of production function, production function, did not provide consistent findings on the ...

Oberoi Rajvilas Hotel is one of the best luxury hotels to stay when having a vacation in one of India’s bustling cities, Jaipur. With its exquisite amenities and serene atmosphere, it serves as a hub for locals and foreigners with affairs in the city. Oberoj Rajvilas hotels provide excellent service to its guests, while giving a touch of traditional royalty in its surroundings.

Our consultant company is committed to improving tourism and accommodation services of the hotel through approaches centered on giving the best customer service. Since the consultant company focuses on improving customer service, our aim is to find ...

Article Reviews and Summary

Federal Reserve has given another indication that it will be more than willing to use a much lenient monetary policy in order to heal the convalescing US economy. The lenient policy will drive interest rates further down or will keep the interest rates stable at near 0%. The Federal Reserve may also increase the money supply in the economy to boost the economic transactions in the country.

A decrease in interest rates and an increase in the money supply would mean that investors would use that money to set up new business ventures which would lead to improvement in unemployment ...

Advertising and Promotion Strategies

Advertising and promotional strategies can be an extremely important part of a business plan, especially for new businesses or those that are currently in their startup phase . This is because the products and or services being offered by startup companies are often not yet known to the market or if they already are, they are still considered as alternatives over the more mainstream products and or services being offered by more established industry players. Poor advertising strategies can be a reason for lackluster sales in the early stages of opening up the business. Being in the startup phase should not be a ...

Summary

Trading investment is growing at a faster rate and the market structure is changing fundamentally such that business people have indicated presence of low frequency trading opportunities (Maureen, 2014). The chances to purchase are not limited but buyers are few and this has tempted most investors to look for fatter gains. Consequently, this has created the need for implimenting smarter ideas inorder to survive in the market. In fact, by adopting business strategies which are appropriate for the better frequency in business world, investors can get reasonable gains. Otherwise most investments involve some degree of risks like the ...

Introduction

What are Investments? - An investment can have a variety of meanings. It is commonly used in the fields of finance and economics. - In the field of finance for example, an investment could refer to something that an individual—most likely an investor, would spend money for, expecting for a gain, yield, or simply, a return on his investment, either on a short or a long term basis . - An investment may always carry a certain degree of risk - Examples of investments - Equities - Bonds - Stocks - Securities - Properties - ...

The following case study corresponds to an analysis of the known facts going around the Swiss Franc and the effects it has from the point of view of investors, managers, employees, manufacturers and tourists. In order to show this breakdown, the next set of questions will be answered accordingly.

- Why is the Swiss Franc a “haven currency” according to many international investors?

For international investors, the Swiss Franc represents a “haven currency”, thanks to its ability to protect capital and revenues since it ...

Taxes Matter

James M. Poterba’s article attempts to explain with reasonably simple language, examples, and tables the complexity of various types of investments people often make to save for retirement. In the introduction, the author states that “this analysis looks only at taxes that are paid when funds are withdrawn or, in the case of taxable accounts, taxes that are due along the way” (Poterba 1). Poterba covers how different investment types are taxed differently, rates subject to change due to tax reform, how rates of return differ according to investment types such as bonds and equities, ...

Answer 1)

Bonds are an attractive investment assets and are appealing for any investor because of fixed interest income option which is not available in stocks. Furthermore, certain bonds as Treasury and Federal Agency bonds also offers tax advantages to the investor. Thus, such distinctive feature makes bonds an appealing investment class.

Some of the bonds which are currently available are:

- Treasury Bonds - Agency Bonds - Municipal Bonds - Corporate Bonds

Below are some common investment objectives that can be fulfilled through investment in Bonds:

i) Fixed Income Security: Since bonds are fixed income securities, they are known to offer a certain interest income depending on the type of bond purchased by the investor. This feature is not available in ...

Bell G, Filatotchev I, Aguilera R (2014), 'Corporate Governance and Investors’ Perceptions of Foreign IPO Value: An Institutional Perspective', Academy of Management Journal, 57(1), p.301-320; [Peer Reviewed]

This article examines the responses of stock market to different groups of corporate governance strategies at the firm level by putting emphasis on initial public offerings in the U.S. it depicts how a blend of different incentive-based and monitoring strategies under corporate governance result into the same level of valuation for investors. Equity investors are highly influenced by their expectations regarding the corporate governance strategies adopted.

Bell G, Moore, C. B., ...

The first type of securities market are the primary markets. Primary markets deal with the securities issued for the first time, that is, the initial public offering. Governments, companies and institutions in the public sector obtain finances from the sale of new bond or stock issue making the primary markets a very important source of capital. Primary markets are important in understanding the investment business because they facilitate the formation of capital in the economy. The financial instruments like shares are purchased directly from the company offering such shares.

Secondary markets form the second securities market where the bonds, options ...

Question 1

Prior to its enactment in July 2002, the effects of the Sarbanes-Oxley Act were felt apparent subsequent to the fact that its enactment fostered a series of company fails. Inherently Sarbanes-Oxley Act cultivated the downturn of major companies such as Tyco, Enron and WorldCom (Khanna & Palepu, 2010). In addition, this act further caused dire damage on major companies between 2002 and 2004. With such apparent effects, Sarbanes-Oxley Act is more likely to affect the America’s stock exchange in many perceptible ways. Swath changes subsequent to the enactment of Sarbanes-Oxley Act were deep and profound. To execute the ...

Overview of Growth, Development and Strategic direction of Google since the IPO in 2004

Google is a non-conventional company. Google has always been managed differently since it invention as a private company. Emphasis has always been on the environment or the atmosphere of creativity as well as challenge. It has led to the creation of Google that provides accurate, unbiased and free to access information for anyone that relies on Google globally.

The CEO said at one time it opportune time for the company to move to public ownership. Becoming a publicly owned company will have a number of importances to the employees, customers, the current shareholder and also the future shareholders. The feared however is that ...

An Accounting Investigation after the UK based super market restated its profits

Issue: Tesco restated its accounts due to overstatement of earnings and an accounting investigation is looking into the matters. The company is unable to account for its problems as well as its earnings.

Synopsis: UK based super market chain Tesco restated its accounts last month due to overstatement of profits by $250 million in the half yearly reports. After the profits were slashed and the dividend cut off, the company had suspended 4 of its senior level executives to delve further in the matter. Now the UK based firm is unable to account for its own problems. It can ...

- Child- Carbon - Parents- Oxygen

Recommendation letter to parents

I am writing from Elemental Adoption Agency to tell you about the element in question for adoption. Her name is Carbon, and she goes by “C”. Given the home setting, she can be instrumental in breathing new life into a situation. She is classified as atomic number 6 in our files and is a healthy atomic weight and mass number of 12. She is grouped in the nonmetallic section of our agency and is a complete element with 4 valance electrons and can make four strong bonds. She would thrive best in a home capable ...

Introduction;

What question do market ratios try to answer for potential investors? Market value ratio aims at evaluating a company’s economic status in the extended marketplace scenario. Factors such as; price earnings ratio, earnings per share, price/cash ratio, market value per share and dividend yield. Market ratio allows the management to cross-check on the certainty of an investor future prospect’s and insights about the firm.

Market ratio is a determinant for a firm’s future performance. This influence the current investors to invest more in the business. It is a tool that allows chances of potential investors investing in the firms shares. ...

Diversification of a portfolio means managing various equity options under one roof. Investing in different shares amounts to diversification of an investment. Diversification reduces the risks attached to the portfolio and provides an opportunity to the investor to earn better. Diversification cannot eliminate all risks in the business. This is due to the fact that even after diversification there are various factors which affect the upward and downward movement of shares. Market forces, economic policies and political stability have a significant impact on the movement of equity shares. Diversification can reduce the risks to a great extent but there is no assurance ...

- One of the greatest advantages for an investor investing in mutual funds is that of diversification. At times, individuals do not have free cash flow to invest resources in several places such as; bonds and stocks.

Consequently, people can invest their money along with multiple other investors. This reduces the risks for the investor, as he is not reliant on a single source. Apart from this, mutual funds are managed by a hired professional. The individual who has invested his/her money may not have to worry about buying and selling at the right time; since, the professional investor performs this ...

Unsuccessful business connotes to a wasted effort. Unequivocally, worthy investments are requisite to the future financial security coupled with myriad accomplishments. Establishing an investment or rather an asset management business is primarily vital. Also, raising funds for business, thereby, investing in a competitive market explicitly illustrates the direction of a particular entity. Distinctively, a group of individuals based in London intends to invest into vintage cars and art pictures. The highlighted business necessitates myriad clarifications with regards to the investment. Essentially, the suggested business is majorly embattled with limited funds. The paper endeavors to establish whether to raise funds from a developed country or ...

According to Michael, “Flash Boys” is all about how another group of venture firms has schemed with the financial firms and the stock traders to utilize sophisticated programming calculations to skim pennies. The group skim money from the genuine financial specialists who give value cash flow to the economy. Michael narrates a story through diverse cast of characters who come to comprehend this cutting edge scalping operation, and attempt to do something to defeat it.

The ethical champion in Flash Boys is Brad Katsuyama, an exceptionally well-paid stock merchant at the Royal Bank of Canada, who evaluated that the ...

Purchasing of a bond normally means that this transaction is equivalent to giving a loan to the issuer. As such, it is important to put into consideration a number of factors before buying the bond. In this regard, it is important to consider the maturity of a bond. Usually, there are short and long-term maturities thus the purchaser should consider if the duration it will take for the bond to mature is convenient for him/her. Generally, the purchaser will get more interest payments in total for bonds with long maturities than those with a shorter maturity hence it is important for the person buying ...

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

In this report, we will put into the use the bond valuation technique so learnt by us. In addition, for the purpose of valuation, we will use the excel spreadsheet as and when needed. In other part, we will discuss and compare the interest rate risk and re-investment risk followed by measures to manage each of them. We are hopeful that by the end of this report, we will be gaining a handful experience over the concepts of bond valuation and various risk associated with them.

Part A

Answer 1)

1.a) Using the Present Value function in the excel spreadsheet for cash ...

Nestle Sdn.Bhd is the Malaysian district of the Nestle Corporation, originally set up in Switzerland, as a multinational nutrition and beverage company with its headquarters in Vevey. It truly possesses the leading points at the world food production and distribution market, as its market capitalization exceeds the number of 200 million USD. The 29 brands of the company gained their popularity through all over the world, varying from casual food and drink products, to even medical nutrition.

Nestle corporation represented its production on the Malaysian borders more than a hundred years ago, as the first company in Malaysia appeared in 1912 ...

The wolf of Wall Street (2013), a movie based on true events, revolves around Jordan Belfort’s life. He started out as a low-level stock-broker and GOT retrenched when the company he was working for became bankrupt. He found employment with a small company that dealt with Penny Stocks. Thereafter, he broke out and started his company, Stratton Oakmont Inc., with a group of friends, which was an Over-The-Counter (OTC) brokerage house. I selected this movie so as to analyze the organizational structure in Over-The-Counter firms. These types of firms have been criticized and branded the “dark market” because their charges in ...

Introduction

The entire concept of both of these things is vital for an organization and the importance of the same thing cannot be derailed from any standpoint. In finance, the name of Financial Modeling is one of them, which has its own significance and importance. Theoretically, financial modeling is basically a task of building an abstract of representation of a real world and financial institution. Financial Model is usually known as a mathematical model represents the asset class of a financial based asset or a portfolio of a business or an individual . The essence of financial modeling is increasing day by day in number of countries ...

Five different types of frauds are:

 Employee embezzlement - Vendor fraud - Customer fraud - Management fraud - Investment scams

Employee embezzlement fraud means that the employee of the firm uses his power or authority to manipulate the assets of the company for personal gain. In this case the victim is the employer or the firm. Employee can steal the assets of the firm which is called direct fraud. In case of indirect fraud, employee can use third party by asking for a bribe or hidden commission from suppliers.

In Vendor fraud, the manufacturing or selling companies charge their customers more ...

According to the Wall Street journal, the U.S Gross domestic product grew by 2.8% in the quarter that ended in September 30. This is according to the data released by the Commerce department. The growth indicates an improvement from the 2.5% growth recorded in the second quarter. According to economists, the growth much of the growth was due to a one-time accumulation of inventory by businesses across the country.

There was reduced spending on equipment and software by business firms in the third quarter. According to economists interviewed in the Wall Street Journal, the government shutdown together with the holiday ...

A dollar today is worth more than a dollar tomorrow

One of the most important concepts in finance is time value of money that means that money has its value. This means that a dollar in hand today will be worth more than a dollar a person will have in the near future. For example, that a dollar that is invested today in saving account or in some bond will have an interest added in it on an annual basis that will eventually result in the rise of dollar value in the future. (Business Finance Online, 2013) This occurs because of:

- Risk and Uncertainty is always present because no one can pre-determine ...

The amino acid is a hydrophobic and aromatic essential amino acid. The compound is relatively non-reactive because of the benzene ring in its structure. Since it is nonpolar, the amino acid does not dissolve in water. Due to its hydrophobic nature, the amino acid is buried in the hydrophobic core of protein structures. However, the aromatic side chain in the structure of the amino acid affects protein structure by staking with the aromatic side chains of other amino acids. The side chain of the amino acid is relatively non-reactive and as such is not often involved in the functions of ...

Ratio analysis is a useful tool for the purpose of financial analysis as it facilitates summarization of a large quantitative data and produces a meaningful conclusion for every user and the same is discussed below:

- Owners: Ratios are used by the owners of the company so as to know about their liquidity, efficiency and profitability of their entity. In other words, ratios act as profile evaluators on the basis of which owners establish benchmarks for the future performance of the company.

- Financial managers: Finance managers use the ratios to evaluate the financial policies of the company and ensure that all ...

Introduction

In an investment, it is critical to make appropriate decisions that are relevant to the business. The essence of this is to minimize the risks and ensure that the business is on a steady path. The investor has, therefore, to consider following some guidelines that ensure that a proper forecast of the investment is done to ensure that there are no such issues, poor returns on investments (Matthäus-Maier, et al, 2007). The guidelines that are relevant for aggressive equity investors and conservative equity investors for investment decision forms the basis of evaluation in this paper.

The guidelines for conservative equity ...

There is an inconsistency of the condition, and it is considered an ethical dilemma. It is very certain to conduct a screening in the investment channels ethically. Generally, the investors avoid those firms that pay high dividends, but are bad for the society. The main concern is to understand the moral features in relation to the carbon footprints; it is not advantageous for society. Thus, investments in such firms that pollute the environment should not be made. Such investment may not produce great returns and verge on being acts of charity. In this connection, I would prefer to sell the ...

- The beta estimates are reasonable. The beta coefficients of all the assets are less than one which, when compared to the market beta of one indicates that the price of the investment will be less volatile than the market. This is due to the fact that the betas of these investments are less than the market value which is taken as the benchmark value.

- The most important measure of risk in this situation is the calculation of Sharpe ratio. This is because this ratio measures the risk adjustment performance of the investment as opposed to standard deviation ...

In the management of inventory by a firm there exist different techniques of valuing inventory at hand and that which has been acquired. The most famous and employed techniques are LIFO and FIFO.LIFO is an acronym referring to Last in First Out while FIFO refers to First in First Out.

The gross difference between the two techniques is how the inventory is valued before it leaves the warehouse to the processing unit,(walther,2012)

In last in last out (LIFO) model the inventory per unit leaving the warehouse is valued at the price in which the last acquired inventory is ...

The late 1970s and especially 1980s were years of major market changes in response to new deregulation policies. The presidency of Richard M. Nixon and afterwards of Ronald Regan was an era of federal government permissiveness and abandonment or relaxation of several laws. It was thought that turning the focus away from laws and regulations would create a motivation for competitiveness, thus bringing higher productivity, efficiency and lower prices.

Deregulation affected a broad spectrum of industries and markets like airline, railroad, telecommunications and banking. All these businesses were hugely affected by the new deregulation policies, but most of all the monetary ...

Market risk is the uncertainty in the returns that an investor has in the market due to macro-economic factors that cut across all the assets in the market. Market risk can also be defined as the likely-hood of an investor to incur losses in the portfolio he holds in the market that is caused by the factors that affect the financial markets performance. Market risks have an effect on the stock prices of shares and investments. Their occurrence cannot be ignored as it has far reaching effects on the investments of the people.

An example of a market risk is ...

- What is the purpose of Tune Ins Holdings Berhad’s IPO?

On 23 September 2013, Tune Ins Holdings Berhad (TIHB), an insurance products provider, announced a press release regarding the prospectus for its Initial Public Offering (IPO). TIHB announced it’s listing on the Main Market of Bursa Malaysia Securities Berhad (Bursa Securities). Under this IPO, TIHB will sell up to 210,224,900 ordinary shares to Malaysian and some particular influential investors, including Bumiputera investors approved by the Ministry of Finance (Tune Insurance). As per to the prospectus in the press release, earnings of the IPO procedure will ...

Thesis

This paper will discuss the 4 broad areas of information that are available in the prospectus of Tune Ins Holdings Berhad. Also, the paper will cover how these four factors can help investors to choose whether to invest in the company or not.

Four Information Areas and Importance

Four important areas of information in the prospectus that can help investors to buy securities from Tune Ins Holdings Berhad:

Business Overview: The business overview section in the prospectus is useful to understand the Initial Public Offering by the company. This section offers information to the investors that help them to develop a clearer view about what ...

Developing countries are vulnerable to a number of economic problems; they have struggled with relatively extreme poverty and are likely to suffer from the effects of the current financial crisis globally. To minimize the cost of poverty developing countries need to develop vibrant strategies to increase living standards of their people. In order to achieve high living standards of their citizens and to increase the level of the economy, the government has to liaise with foreign investors especially from developed countries. It has been proofed that foreign direct investment plays a key role by providing the finance that could not be ...

There has been a long standing debate about the pay of the CEO’s of companies. Proponents of this debate argue that CEO’s of successful companies are effectively performing the duties for which they were hired that is; maximization of shareholder wealth. Therefore, if CEO’s are paid in terms of stocks or salary then this is justifiable. Proponents further argue that the media reports instances where shareholders are given high salaries, benefits, and stocks but they fail to report events where CEO’s have been fired and their pay has been reduced as a result of poor company performance. ...