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

Financial markets and institutions - Essay Example

Comments (0) Cite this document
Summary
Before going in details regarding financial markets and financial institutions it is necessary to have some knowledge of financial markets and financial institutions and also the terms trade-off, profitability and liquidity. The experiences have highlighted the importance of…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.1% of users find it useful
Financial markets and institutions
Read TextPreview

Extract of sample "Financial markets and institutions"

Download file to see previous pages Any commodity market might be considered to be financial market if trader’s intention is not the immediate consumption of the commodity but as a means of delaying or accelerating consumption over time. Markets work by placing many interested sellers in one place, thus making them easier to find for potential buyers. An economy which relies primarily on connections between buyers and sellers to allot capital is known as a market economy. Financial markets are affected by forces of supply and demand, and allot capital over time through a price device such as the interest rate. Financial market could mean: organizations that facilitate the transaction in financial products, (for example, Stock exchanges facilitate the trade in stocks, bonds and warrants) and the coming together of buyers and sellers to trade financial products such as stocks and shares including: the use of stock exchanges; directly between buyers and sellers.
There are different types of financial markets: capital market which provide finance through issuance of shares and bonds, commodity market which facilitate the trading of commodities, money market which arrange short term debt financing and investment, derivatives markets that provide instruments for the management of financial risk, insurance markets, which facilitate to cover of various risks and foreign exchange market which facilitate the trading of foreign exchange (Wikipedia, 2006).
When looking at a financial institution it might seem to be a mediator between investors and customers. A financial institution might be considered as an agent that provides financial services for its customers. Financial institutions generally fall under financial rule from a government authority. The types of financial institutions include banks, building societies, credit unions, stock brokerages, and similar businesses. Financial institutions give service ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Financial markets and institutions Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Financial markets and institutions Essay Example | Topics and Well Written Essays - 1500 words. Retrieved from https://studentshare.org/miscellaneous/1536450-financial-markets-and-institutions
(Financial Markets and Institutions Essay Example | Topics and Well Written Essays - 1500 Words)
Financial Markets and Institutions Essay Example | Topics and Well Written Essays - 1500 Words. https://studentshare.org/miscellaneous/1536450-financial-markets-and-institutions.
“Financial Markets and Institutions Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/miscellaneous/1536450-financial-markets-and-institutions.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Financial markets and institutions

Service Management in Financial Services

 Measurement of quality is the result of the services provided to the customer with a prompt response based on the requirements and expectations. Quality of various processes must be managed so as to provide the customer with consistent, accurate and timely results. These results must be of high quality because various other factors pertaining to a business deal are dependent on them. Quality assures the customer of an appropriate service that includes an error-free transaction, access to accurate data pertaining to the specific schemes and services, transfer of credits, changes concerned with the membership and account details and an undoubted trust that helps in attaining the services time and again.

Financial se...
11 Pages(2750 words)Case Study

Money & Capital Markets

The subprime lending crisis rocked the U.S. economy in late 2006 and early 2007. Subprime lending refers to the loans which are provided to the borrowers having less than ideal credit histories. In other words, subprime lending is provided to persons who do not qualify for conventional credits or loans.

The subprime loans gave rise to inflated credit facilities, increased availability of infrastructure and more circulation of more currency in the economy. But this system also gave rise to unprecedented meltdown, liquidation of funds and resultant heavy losses of financial institutions due to non-payment of loans by the borrowers.

The main reasons for the crisis are more than one. They are the failure of the b...
10 Pages(2500 words)Assignment

Accounting & Financial Management

AWB’s operations can be categorized into areas ranging from ‘pool management services’ to ‘harvest financing’, and ‘International commodity management’. Only a company with such a big range of activities and financial outlays can become the benchmark for an equally big company like ‘Woolworth Limited’.

The performance of an entity can be better analyzed through its profitability analyses. The profitability ratios like Gross Profit ratio, Net Profit Margins, Return on assets (ROA), and Return on Equity (ROE). The calculations of such ratios are shown in the attached annexure. The Gross Profit ratio measures the percentage of each pound or dollar of sales remaining aft...
10 Pages(2500 words)Assignment

Financial Management Analysis of Rio Tinto Plc

Taking into consideration that Harmony is the sixth-largest in the world in the gold mining industry, the choice of Harmony God Mining Co. as a benchmark company is the most suitable and justifiable. Moreover, Harmony has also some investment stake in Rio Tinto, and this situation makes the company more suitable for the choice. At places, the benchmark company’s performances have been better than Rio Tinto, and thus Harmony has a competitive edge as well over Rio Tinto.

Profitability ratios like Operating Margin Ratio, Net Margin Ratio, Return on Assets (ROA), and Return on Equity (ROE) are the performance analyzer of any company. Profit Margin ratios show the relationship between profit and sales. Since profit ca...
8 Pages(2000 words)Case Study

Law of Financial Services

For instance, the European Commission’s Regulation No. 1049/2001 which very specifically details rules and regulations governing the public access to European Parliament, Council and Commission documents. Article 8 of the regulation states that “personal data shall only be transferred to recipients … (b) if the recipient establishes the necessity of having the data transferred …” (Regulation 1049/2001). Although this law is not at all related to the data protection of banks and their customers, it does give us an impression of how serious the EC is in protecting the integrity of data.
In saying that the laws that we have on data protection have adequately addressed the needs of banks and custom...
6 Pages(1500 words)Article

Organisational Learning in Educational Institutions

Conventional understandings will be reviewed and reinterpreted based on the actual practice and needs of such organizations.

Most literature on organizational development tends to be for the management of business organizations. But I believe that organizational learning is more crucial for non-profit motivated service organizations such as educational institutions because they are more embedded in society and have greater social as well as economic consequences. Educational institutions are dynamic institutions like many others but they are fundamentally different from businesses for whom most of the conventional organizational change and development theories are framed. A developed and tailored theory of organizationa...
14 Pages(3500 words)Report

Emergency Economic Stabilization Act of 2008 and How It Has Impacted the Financial Markets

Though there were objections from various quarters about the huge amounts of tax payer’s money being used in the bailout of huge corporates, the Act has been successful in moving the downturn towards a flat point and now has started slowly moving towards a recovery stage. The various programs under the EESA 2008 have played a significant role in the financial sector, housing mortgage, and banking institutions to save the institutions from complete disaster.

The Emergency Economic Stabilization Act is a huge taxpayer bailout designed to rescue the financial sector. The amount of money to be used is around $700 billion or $2000 per American citizen (Public mark up). Emergency Economic Stabilization Act of 2008 is al...
10 Pages(2500 words)Research Paper

The Effects of Financial Crisis on Supplier Selection Criteria of the Oil and Gas Industry Equipment Market

It is a difficult task to find those vendors who not only have the adequate quality and quantity of the needed raw materials but who also have an attitude of efficiency and display commitment to customer service (Sonmat, 2006). Further, organizations also strive to locate and select vendors who can be depended upon for long term relationship.

The number of factors or attributes desired from the vendor is vast, and different organizations and different industries place different importance on the attributes (Sonmat, 2006). Some of the vendor attributes may gain importance owing to the nature of the industry, for example, in the case of consumer perishables suppliers, like fresh vegetables or fruits, the buying firm would...
20 Pages(5000 words)Literature review

Introductory Economics and Finance: Why Governments Regulate Firms and Markets

By government regulation, it is meant by the rules administered by a government or government agency to influence any economic activity which determines the price, types, and standards of products, and most importantly the conditions under which the entry and exit of the firms are possible.

Like death, it is impossible to keep away from regulation in about every aspect of daily life. The business regulation may be classified into two- economic and social (Litan). The economic regulation deals with price controls and the entry limits of the firms into markets. The second type regulation mostly deals with externalities (the outside influences of the company or firm which may or may not be decided by them)

Examp...
6 Pages(1500 words)Assignment

Management of Financial Institutions

The first paper is about International Banking Regulation. For banks that may want to spread across borders, the study gives an explanation of how the various policies and laws may affect its operations. The second paper in the study gives the various restrictions on the development of Pan-European bank mergers. It shows how regional liquidity shocks limit cross-border bank mergers. Thirdly, the study shows the various methods banks use in risk assessment when lending to less developed countries’ sovereign governments. It gives a topology that can help banks efficiently assess risks. An explanation of the multi-nationalization that is given in this paper comes with a model showing how applicable the profit maximization hypot...
8 Pages(2000 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.

Let us find you another Essay on topic Financial markets and institutions for FREE!

Contact Us