Financial Markets & institutions - Assignment Example

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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,…
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Financial Markets & institutions
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"Financial Markets & institutions"

Download file to see previous pages They have low interest rates in terms of a constant fixed rate or settled upon maturity and are short term.
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 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.
Brycce, 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, ...Download file to see next pagesRead More
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