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

Australian Capital Market - Case Study Example

Comments (0) Cite this document
This paper "Australian Capital Market" focuses on the fact that Australia, as a country, has had a robust capital market and a vibrant stock exchange market over the past few decades. Some of the stocks that have featured prominently in the country’s stock market in the past…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.5% of users find it useful

Extract of sample "Australian Capital Market"

Download file to see previous pages This paper will discuss the Australian Capital Market and will also focus on the impact of the global financial crisis on the country.
The capital markets have been faced with challenges especially during this period of the global financial crisis. The global financial crisis has negatively affected the Australian capital markets and therefore there has been a pressing need for a serious counteraction to raise the country to its usual state according to RICS Research (2007). In the last three months, positive change has been recorded in Australia’s money market. More initial public offers by private companies have been noted and indications show that this trend will most likely continue. This has increased the sharemarket performance of the various industries. Indications show that banks are reluctant to provide financing in terms of debt financing.
Companies have adopted merger and acquisitions to survive through the recession like Tolhurst Noall which merged with Patersons securities (RICS Research, 2007). This has prevented them from dropping out of the industry. Companies are diverting attention to the e-commerce/digital media companies that are taking a significant market share from newspapers and magazines. The country has seen a lot of reluctance in debt financing since financial institutions have preferred to fund businesses through equity as opposed to debt. Companies that seek to increase their capital, one viable option has always been to give up a generous portion of their shareholdings.
While IPOs were a common way of cashing out investments in the last couple of years, this is no longer the case as many investors have not been able to venture into new businesses due to restrictions on IPO’s according to ResearchWhitePaper (2010). The country has however continued to enjoy a lot in terms of issues. In 2007 for example, Ivanhoe Australia acquired about 12% shares in Exco to become the major shareholder in the company. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(Australian Capital Market Case Study Example | Topics and Well Written Essays - 2500 words, n.d.)
Australian Capital Market Case Study Example | Topics and Well Written Essays - 2500 words. Retrieved from
(Australian Capital Market Case Study Example | Topics and Well Written Essays - 2500 Words)
Australian Capital Market Case Study Example | Topics and Well Written Essays - 2500 Words.
“Australian Capital Market Case Study Example | Topics and Well Written Essays - 2500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Australian Capital Market

Fraud And Capital Market

...?   FRAUD AND CAPITAL MARKET College: Introduction Law requires that all public companies present financial statement at the end of every financial period. Financial statements presented by corporations are as results of proper book keeping and independent auditing. According to Scharff, company’s strength and survival is demonstrated by the financial position and the level of profits in competitive market structures. Scharff, states that, the qualities of financial statements or reports have been eroded by individual interests that have resulted in fraud, this can be inform of individual, corporate, online or advanced fee fraud (Scharff 2005). These eroded financial statements are referred to as fraudulent financial reporting which can...
10 Pages(2500 words)Research Paper

Money and capital market

This form of policy gives the bank an opportunity to avail massive liquidity. This policy is very effective in addressing frozen liquidities that are experienced across the globe especially in the United States of America where money transfer between banks has been witnessed during a financial crisis. This is a step to mitigate the effects liquidity shortage could have as far as solvency problems is concerned. Liquidity policy response is also beneficial in many ways. It does not only offer solutions to short term money problems in market rates. It also helps to ease pressures at the markets as far as funding is concerned. This is a step towards ensuring that funds are supplied for long term benefits as well. Further, central ban...
3 Pages(750 words)Essay

Money and capital market

...?Money and Capital Market Table of Contents Table of Contents 2 Introduction 3 Discussion 3 Basel Accords 3 Factors that Led to Transformation from Basel II to III 4 Gaps in Basel II 4 Positive Prospects of Basel III 5 Conclusion 6 References 7 7 Introduction The significance of commercial banks in financial system can be depicted from the fact that they are among the most important financial institutions that operate in any particular region. Their effective functioning is crucial owing to the support they provide to the economic growth of a particular region. In order to safeguard the significance of these financial institutions, regulating authorities have incepted the frameworks of Basel accord comprising of Basel I, II and three (Hai...
3 Pages(750 words)Essay

Australian Property Market

...Impact of Interest Rates on the Demand for Residential Properties in the Australian Property Market The Australian property market provides a good long term investment for one who is investing in the house properties, by virtue of the escalation of prices over the period. Even when the market conditions show a declining trend, the investment is sure to result in a profit for the investor. During the current period there has been an all round in the economy of Australia which contributes for the improvement in the property prices. Another factor that has given a favourable outlook for the property market is the reduction in the number of property developers who has shun away from the business due to the past struggling market. However...
14 Pages(3500 words)Essay

Fruit and Vegetables in Australian Market

Agriculture does not play a dominant role in the economy of the country and its share of Gross Domestic Product is only three percent. "Gross farm product (GFP), which is a measure of the value added in production contributed by businesses classified to the Australian and New Zealand Standard Industrial Classification (ANZSIC) Subdivision 01 (Agriculture). In 1999-2000 GFP was calculated to be $17.6 billion, or just under 3% of gross domestic product." (7113.0- Agriculture, Australia, 1999-2000 2006). Still the country produces a wide variety of crops including fruits and vegetables. Even though Australia is self sufficient in agriculture, the country also imports fruits vegetables and other agricultural commodities mainly due to...
9 Pages(2250 words)Essay

Improvement in Capital Market Efficiency

...Contents Contents Introduction 2 Advantages of adopting IFRS 4 1. Reduction in cost of financial reporting 4 2. Improvement in capital market efficiency 6 1.3. Attraction of new investors 7 1.4. Increase of efficiency of Australian companies 8 2. Disadvantages of adopting IFRS 10 2.1. Uncertainty in accounting standards 10 2.2. High costs of the reform 11 2.3. The expansion of the US influence on global economy 12 2.4. The inconsistency of IFRS 13 Conclusion 14 Works cited 15 Introduction It is evident that financial reporting is one of the crucial elements of financial system and economical stability of a particular country. Financial reporting and accounting standards are responsible for the interaction between the firm, its...
8 Pages(2000 words)Term Paper

The Australian Automobile Market

...The Australian Automobile Market 1.0 Executive Summary The Australian automobile market has experienced sliding sales and most companies are finding it difficult to survive. The Holden SS Ute – sports utility trucks have been popular and keep upgrading the product. However, they too need certain changes in their marketing mix to enhance the sales. This report recommends additional functional features to the product mix with customized interiors and colour of the vehicle. The price mix should adopt differential pricing and volume discounts. The promotions can be widely varied. To maintain public relations, racing and sporting events should be organized regularly and the existing customers involved through active participation. Videos...
8 Pages(2000 words)Essay

Capital Market

Govt. Raises funds for different tenors. These include both long term, as well as, short term papers.
The terms, used for short term and long term papers, are different depends upon the definition of the maturity of the paper. On the basis of international standards, the short term paper ranges from 3month, 6months and 12 months maturities. On the other hand, long term paper is referred to as those securities which are issued for a time period more than one year. The short term papers, which are issued by the government, are called Treasury Securities. Similarly, the long term papers by the government are called Treasury Bonds.
In the middle of government issued and Private Securities, there are some other securities, whic...
6 Pages(1500 words)Essay

Capital Market Efficiency

...Capital Market Efficiency al Affiliation: Capital Market Efficiency An efficient capital market plays a significant role in the financial management of the firm by providing the top-level managers with detailed and accurate information of the prices of the share. As a result, it becomes easy to make critical decisions that will improve the financial position of a public firm (Moyer, McGuigan, & Rao, 2015). The reason is that the financial markets are able to respond to the new information that has been released in the markets. Another implication is that the sale or the purchase of any security at the current price in the market is zero NPV (Moyer, McGuigan, & Rao, 2015). The reason is that the information is reflected immediately...
2 Pages(500 words)Assignment

Market Structure

The market structure is mainly classified based on the number of active players in that market. These market players are the main component to supply a particular type of product in that market. If we look at the economists' view, these players within an industry are the main parameter for the level of competition in that industry. Whether it is a perfect competition or monopolistic competition these players supply only a small portion of the total output for the industry but this small contribution only determines the main market structure. If we talk about the market types there are few players in the oligopoly markets, only two in duopoly and a single player in the monopoly markets.
If we talk about car manufacturing compa...
10 Pages(2500 words)Coursework

The Australian Retailing Market

Being able to make amends with the way the management deals with the organization’s workforce is one way by which the business entity is ensured with the success that it aims to achieve in the future. (Greenwood, 2005, 12) This is the primary reason why management could not passively deal with the issues that concern the employees, especially when dealing with the retail practices of business (Leat, 2001, 21). Particularly in Australia, retail businesses are soaring high and are indeed making a great mark in the country’s industrial statistical reports. To support the claims mentioned above, a study on the Australian retailing industry shall be studied in this paper.
The system of retailing business is based upon...
7 Pages(1750 words)Case Study

The Implications of Excess Capacity in the Jewellery Market

High conglomerates have the capacity to project themselves in key locus points attracting customers and promote their Jewellery designs through advertisements to acquire the customer interest at the expected level achieving brand loyalty.
The Supply factor outpaces the demand for jewellery leading to reduction of prices, minimizing the ultimate corporate profit by a small percentage and increase in job cuts as a measure of sustainability.
Traditional small jewellery and watch operators suffer a major setback in business because of the increasing competition from luxury goods and high fashion conglomerates. There are many instances where traditional jewellery has lost its importance and the demand for the same is fading b...
8 Pages(2000 words)Case Study

Capital Asset Pricing Model and Recent Developments

It is the most essential aspect of any venture. The important considerations that finance has within it, is that of profit and loss. The business as a whole or a person as an individual always strives to earn a profit. To earn a profit, one has to undertake uncertainties that are known as risks. Therefore, profit is also known as the reward for incurring risks.
In the present world of today, the capital market has come up as a viable investment opportunity for individuals all across the globe. People invest their hard money only with the expectation to earn profit or return. The stocks of various companies that are traded in the capital market are also known as capital assets. Prior to investing in any of the stock or capital...
7 Pages(1750 words)Assignment

Real Cost of Capital

Also, other academics criticize the models' failure to incorporate other determinants of risks such as firm size, book-to-market ratio, etc. then the plain correlation of the risk of the assets to the market. Despite these criticisms, many practitioners in the corporate world still use CAPM for capital budgeting. These issues are probed in this paper.
CAPM or the capital asset pricing model has been a tool in modern finance that has been extensively used for capital budgeting. The capital asset pricing model is useful in estimating the required return on an equity stock of a company (Perold 2004). Under the principle of finance that rational investors will require higher returns to compensate them when they undertake projects...
8 Pages(2000 words)Assignment

Economic Models: The Free Market and The State Owned System

The free market concept is mainly a theoretical concept as every country, even capitalist ones place some restrictions on the ownership and exchange of commodities (Free market economy). Therefore, the term free-market economy primarily means a system where the buyers and sellers are solely responsible for the choices they make. It gives the buyers and sellers the power to do business without being afraid of any regulations and intervention by the state. Hence, a free market gives the absolute power to prices to determine the allocation and distribution of goods and services (Free Market Economy). The pricing mechanism is in turn, driven by the forces of demand and supply of goods and services. Demand and supply of...
9 Pages(2250 words)Case Study

Multinational Capital Investment in Ruritania

The main risk factors with an emphasis on financial issues, which are important for this decision, are examined in this report. Further, the main financial factors to be considered before making the decision are discussed based on investment appraisal techniques. The next section examines the available evidence on the risk factors and estimation for international investment. In section 3, these factors are examined for the country studied here. In section4, the financial issues to be considered based on investment appraisal techniques are discussed. In section5, appropriate recommendations are made regarding the investment decision for the case presented here.

According to Nagy (1984), the main risks in multinational ca...
8 Pages(2000 words)Case Study

Money Policy versus Credit Market

Financial institutions generally engage in securitization to enhance their profits by trading in the collateralized backed securities that generate high yield returns to the financiers. This nevertheless inversely and negatively affected the credit markets as their efforts to enhance their liquidity positions backfired. Consequently, the import of these monetary strategies has generated cyclical effects on the monetary system to the detriment of the financial system.

Normally, money markets demonstrate a more efficient allocation of credit whenever additional liquidity is injected into the system, which would otherwise display some undesirable distortions. Ultimately, the liquidity market is not easily susceptible to ex...
6 Pages(1500 words)Case Study

Foreign Market Entry and Diversification

In 1990 a completely new trend was found as the domestic companies began to expand their business in a foreign market. Belgian company would be a great example as the company acquired breweries in 20 different countries. In 2004 two of the biggest breweries in the world, Interbrew and AmBev decided to merge with each other and the largest brewery in the world was created. This merger and acquisition strategy became a popular trend and it is reflected from the list of the top breweries which include SABMiller, Anheuser-Bush and InBev.

However, some of the recent trends have prompted the prediction that consumption of beer will go down in some of the European countries like France, Spain, and Germany. The threat of such a...
7 Pages(1750 words)Assignment

Towards Inclusion: an Australian Perspective

 Looking at the Australian and other viewpoints from extant literature, the current report seeks to form cohesion from disparate sources on the issue of inclusion programs, with the basic assumption that these programs are of value, primarily because they help the student with special needs to develop socially.
The topic of the current investigation is the inclusion of special education students in mainstream classrooms. From the 20th century onward, there has been more of a focus and emphasis on inclusion programs and mainstream programs, in Australia as elsewhere in the modern Western world. These programs include special education students as a part of the mainstream classroom so that they are integrated with their pe...
8 Pages(2000 words)Assignment

Project Management of Beijing Capital International Airport T3 Terminal

Some stakeholders can be both driving (positive) and restraining (negative) forces, it depends on how the project will meet their interests. These forces are marked by a dotted line. If changes happen, and the project won’t meet the interests of some of these stakeholders, a vector of the corresponding force will be changed onto the opposite and the force will move onto the opposite part of the diagram.

Each half of the diagram (left and right) is divided into three parts – Low, Medium and High. It defines the size of a force vector and indicates the importance (power) of a given force. Short forces have a low level of power.

Civil Aviation Administration of China (CAAC) – undoubtedly advanc...
7 Pages(1750 words)Assignment
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.

Let us find you another Case Study on topic Australian Capital Market for FREE!

Contact Us