StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Financial Markets & institutions - Assignment Example

Cite this document
Summary
The role of financial markets and institutions like capital markets and depository institutions is to offer an ideal avenues for the exchange and trade of securities and mediate between institutions or people to enhance a transaction between them (Howells and Bain,…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.4% of users find it useful
Financial Markets & institutions
Read Text Preview

Extract of sample "Financial Markets & institutions"

Financial Markets and s affiliation Due Role and function of financial markets and s in a modern economy The role of financial markets and institutions like capital markets and depository institutions is to offer an ideal avenues for the exchange and trade of securities and mediate between institutions or people to enhance a transaction between them (Howells and Bain, 2007). The properties or features of commercial papersCommercial papers are used to finance short-term financial requirements of the company as and when they fall due.

They are flexible and available in any denomination and ave associated low risks as they are traded with companies that bear high credit ratings (SCHWAB and LYNCH, 2003).Properties of negotiable certificates of depositNegotiable certificates of deposits bear low risks as they are traded with companies which have a good liquidity position. They have low interest rates in terms of a constant fixed rate or settled upon maturity and are short term. Features of Repurchase AgreementsRepurchase agreements are short-term, meant to settle the expenses of operation and have associated low risk levels.

Reverse repurchase agreements are securities in the money market provided by a cash provider who trades the instruments at increased rates (Spivey, 2012).Features of Banker’s acceptancesBanker’s acceptances are the basic short-term debts obtained by banks and bear deductions from the face value. Letters of Credit are bank guarantees usually taken by the importer to assure the exporter of the goods that they will be settled fully.Exchange Traded Funds are a category of exchange-traded investment artefacts registered under the 1940 SEC Act as funds or unit investment trusts (MishkiN and Eakins, 2012).

The Aljazira capital Document 2014 document covers issues that appertain to: calendar anomalies, the effect of valuation on the performance of a company in the market and technical pointers in a trending market among others. Some of the anomalies include the best performance of the index upon trading on the first day of the week with a strategy of selling the holdings on Sunday and avoiding to buy them on the same day. The other anomaly includes the monthly returns differentiated across that necessitates investing in a short-term gain before the Ramadhan period.

Shadow Banking – development of, comparison and challenges to conventional banking (40% weighting)Shadow banking is an interconnection of specific financial institutions that have no banking permits like Money markets and Special Purpose Entity Conduits (Brycce, 2000) meant to inspect and ensure secure funding from the savers to investors of finances. Shadow banks transform home mortgages into securities through mortgages being regarded as a pack of loans to back up a security sold by investors.

On the other hand, Conventional banks raise funds through the depositors who have surplus and through lending to other individuals who have limited funds.ReferencesBrycce, H. (2000). Financial and strategic management for non-profit organizations: a comprehensive reference to legal, financial, management, and operations rules and guidelines for non-profits. Jossey-Bass Publishers, 3rd Edition, 1-776 Howells, B. and Bain, K. (2007). Financial Markets and Institutions. Pearson Education Limited.

5th Edition, 1-449MishkiN, F.S., and Eakins, S. G. (2012). Financial Markets and Institutions. Pearson Education, Inc. 7th Edition, 1-623SCHWAB, C.H., and LYNCH, M. (2003). Fundamentals of financial management, Brigham & Houston, 10th Edition, 1-78Spivey M. (2012). Financial Institutions and Markets. McGraw Hill, 5th Edition, 1-224

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Financial Markets & institutions Assignment Example | Topics and Well Written Essays - 500 words”, n.d.)
Financial Markets & institutions Assignment Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/finance-accounting/1693447-financial-markets-institutions
(Financial Markets & Institutions Assignment Example | Topics and Well Written Essays - 500 Words)
Financial Markets & Institutions Assignment Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/finance-accounting/1693447-financial-markets-institutions.
“Financial Markets & Institutions Assignment Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/finance-accounting/1693447-financial-markets-institutions.
  • Cited: 0 times

CHECK THESE SAMPLES OF Financial Markets & institutions

Diversification in Financial Markets

Leverage: some Financial Markets institutions work with margin trading.... Diversification in financial markets Diversification in financial markets Diversification in financial markets should be approached with a lot of caution.... Diversification in the financial markets has many advantages, including; Guaranteed profits: diversification in financial markets almost guarantees profitability....
5 Pages (1250 words) Essay

Moral Hazard in Finance

Handbook of key financial markets, institutions, and infrastructure.... hellip; Moral hazard, in some if not all quarters, has been the story most people blame for the financial crisis as greedy bankers and institutions run away with billions of taxpayers' money.... It is the failure to monitor and control financial institutions by governments that has resulted in the financial meltdown that has seen most economies around the world suffer.... Moral hazard, in some if not all quarters, has been the story most people blame for the financial crisis as greedy bankers and institutions run away with billions of taxpayers' money....
3 Pages (750 words) Essay

Production of Low-Cost Laptops

Running head: ENGLISH REPORT PLAN by Code+ University name Date Transmittal letter Dear CEO of Apple, Inc.... and the executive team, Subject: Production of low cost laptops and healthcare focus Enclosed herein is the report you commissioned on 25 November 2013 on the recommendations of the production of low cost laptops and healthcare focus....
6 Pages (1500 words) Essay

Investor Sentiment Explanation

However, researchers advise not to fall into opposite extreme: “It is absolutely not true that introducing a degree of irrationality of some investors into models of financial markets eliminates all discipline and can explain everything”.... Nevertheless the US and the UK markets are more similar than different, that is why we can extend results acquired from one market to another, but with some corrections made....
5 Pages (1250 words) Essay

Financial Services Industries

The reason for this mandate were three-fold 1) to maintain the integrity of the banking system, 2) to prevent self-dealing and other conflict of interest abuses, 3) to… There are concerns that a half century later the barrier erected between these two areas of finance was being violated as securities firms began to offer deposit-like and loan-like products and depository institutions were offering This destabilization asks questions about the various organizational practices and balance sheet structures that these two types of financial institutions utilize....
5 Pages (1250 words) Essay

Dell on Financial Markets

It was later on in 1996 that Dell decided to move to Round Rock, this was due to its high rate of growth which created the need of finding a new place that could allow it to carry out its activities in the best manner possible and also be able to manage its first growing markets globally....
8 Pages (2000 words) Essay

Standard Chartered and Dubai World The lending problem

In the time of financial crisis of 2007-09, when all the markets throughout the world have broken, then the diversification helped the company to manage the situation.... nbsp;… This essay discusses that the financial recession affected the whole world, which has started from the United States due to the housing bubble.... This paper focuses upon Standard Chartered Plc, a financial services company, which operates in more than 70 countries around the world....
8 Pages (2000 words) Essay

Justifications for Audits of Financial Statements

This literature review "Justifications for Audits of financial Statements" presents financial statements that are plain statements based on historical records, facts, and figures.... This was a setback to all ordinary shareholders whose dividends never accumulate to the next financial year....
1 Pages (250 words) Literature review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us