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

Stock and Commodity Markets - Essay Example

Cite this document
Summary
Liberalization and globalization has opened up newer vistas of trade and business all around the globe. It is said that opening up of economies has now tilted the balance in favor of market forces, which is helping the consumer by way of providing quality at reasonable prices…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.5% of users find it useful
Stock and Commodity Markets
Read Text Preview

Extract of sample "Stock and Commodity Markets"

Download file to see previous pages

With globalisation, MNCs began to explore the markets outside there domestic grounds. Stock and commodities market too are being made attractive by respective governments, which is also resulting in wealth creation for the citizens and companies alike. If used judiciously, 'Stock and commodity trading' greatly helps in tapping resources for developmental projects, welfare schemes and other such nation building exercises. In order to leverage the economies of scale at different locations, such companies try to set up some of their operations at different locations.

Moreover, with the advancement in ICT, global distances have tended to become smaller while the world is gradually being seen as a global village. Bracken (2004) underlines that it was since early 1990s when the term 'Globalization' became a catch phrase as it started entering into all walks of life even in developing economies. Libya doesn't have a well defined stock market as Colonel Muammar Qaddafi thought it against the vision of applied socialism and popular democracy (CountryWatch, 2007).

But now with the emergence of his son Seif al-Islam on the horizon, there are talks of a new vision. Libya has the largest reserve of crude oil, but despite such a great wealth and a population of just about 6 Million the country could not progress much during all these years (The Economist, 2007). A well regulated trading as such helps in stabilizing market prices for both buyers and sellers. For example a farmer growing mango crop can enter into a contract with a juice making company or a retailer prior to the growing season to pre-sell his mango crop at an agreed-upon price.

This way the farmer is also assured of a minimum price for his crop, whatever the circumstances are, in the coming months. On the other hand the juice making company is also assured of a minimum level of supply for the company which helps in preparing long term plans and pricing strategies. Similarly if a listed company requires money for expansion or diversification, the company can tap the stock market for borrowing enough money. The borrowed money in turn earns some interests for the lender, which helps in creating wealth for the lender.

Stock markets provide an opportunity even to individual and smaller investors to lend their money this way and thus they are also able to create wealth. The wealth created this way helps in encouraging the consumer market as demands for goods and other commodities increases subsequently. Therefore, the cycle helps in boosting the morale of investors and financial institutions, which in turn helps the economy of the nation. Examples of fast developing economies like India and China together with well developed markets like US and UK are good examples of the role of stock and commodities markets in nation building.

Middle East and North Africa too have been identified as potential growth oriented zones on account of sweeping reforms in some countries of the region. Except Libya and Syria the European Union has recently concluded bilateral association agreements with all states bordering the Mediterranean (Euromonitor, 2007).Dissertation ObjectivesThe dissertation in general aims to;i. Establish a well studied relationship between the stock market trends, the commodity markets and the economies of nations.

These effects have become of particular significance in view of the fast spreading effects of

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Stock and Commodity Markets Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Stock and Commodity Markets Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/miscellaneous/1524905-stock-and-commodity-markets
(Stock and Commodity Markets Essay Example | Topics and Well Written Essays - 1250 Words)
Stock and Commodity Markets Essay Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/miscellaneous/1524905-stock-and-commodity-markets.
“Stock and Commodity Markets Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/miscellaneous/1524905-stock-and-commodity-markets.
  • Cited: 0 times

CHECK THESE SAMPLES OF Stock and Commodity Markets

Topic-Gold stocks and index performance comparison

Instead, it has remained trading in the international markets freely, with forces of demand and supply determining its mean price just like any other commodities.... When the international financial markets are in great upheaval, traders dumb the socks and other financial instruments to save the devaluation of the positions in gold reserves.... Over the recent past, there has been sharp increases I the prices of gold as most of the major financial markets were faltering around the world....
3 Pages (750 words) Research Paper

Stock Market and Federal Reserve System

hellip; Commodities are traded in commodities markets, with derivatives are traded in a diversity of markets.... The term 'the stock market' is a notion for the system that enables the trading of company stocks (collective shares), other securities, as well as derivatives.... The size of the 'stock market' is estimated at about $51 trillion.... With the GDP used as a key indicator of economic activity and future economic prospects, any significant change in the GDP, either up or down, can have a major effect on stock market investors' sentiment....
10 Pages (2500 words) Essay

Market Relationships and Their Roles in Trading Transaction

Stock traders have to be keen over the fluctuations in the bond market and bond traders in return must also pay attention to the oscillations of the commodity markets.... stock market is… ly influenced by bonds, bonds in turn is dependent on the direction of the commodity market and commodity is highly dependent on the trends of the stocks market – understanding these market linkages is the key fully maximizing the market.... One of the important lessons learned in the 1980 market collapse and economic backlash is that the markets all over the world are inter-related, including its financial, non-financial, domestic and international sectors....
13 Pages (3250 words) Essay

Law of Demand and Supply

3 The stock market of UAE, for example, is a market that follows a competitive structure.... In fact, it is the returns that a stock offers which determine the popularity of the same; the moment a rumour hits the market about a possible downfall, the demand for such a stock falls simultaneously.... For instance, the global financial meltdown resulted to a downward revision of the UAE stock indices as was the case for almost every other nation around the world....
9 Pages (2250 words) Research Paper

Credit and Lending Decisions

Resolute Mining Limited (RSG) has been listed on the Australian stock Exchange (ASX) since 1979.... The purpose of this submission is to explore the possibility of offering a $30mn loan to Resolute Mining Ltd for the purpose of exploring the potential of gold mines near the redeveloped mine (Syama) in Western Africa. Resolute Mining Ltd is a company listed on the Australian… The company is engaged in gold mining and prospecting and exploration for minerals....
14 Pages (3500 words) Research Paper

Financial and Commodity Markets and Their Role in International Trade and Economic Performance

The following discussion briefly describes aforementioned types of financial markets. Bonds are the debt instruments The organization of financial (debt, equity, foreign exchange, derivative) and commodity markets and their role in international trade and economic performanceFinancial markets and commodity markets play a wide variety of roles in the international economic performance.... inancial markets and commodity markets are the major indicators of the international economic prosperity such that in times of booming periods, the prices of the instruments traded under these markets are at their peak whereas in times of depression, these prices steeply decline....
1 Pages (250 words) Essay

Supply and Demand of Exchange-Traded Funds in the Market

The creation and the issuance of ETFs consist of two markets which include the primary market which creates the ETFs and the secondary market which buys or sells the ETF units.... Exchange-Traded Fund is a security which tracks a commodity or a basket of assets like index funds, but… ETFs can also be referred to as the middle children when it comes to the trading of stocks.... Exchange-Traded Funds started trading in the stock exchange market over 15 years ago, but they have been gaining increased popularity against mature funds in the recent past....
6 Pages (1500 words) Research Paper

Market Crash and its Contributing Factors

It can have a tremendous effect on the customer's interest and can also bring huge damage to economy and to the markets reputation.... The markets and the investors have witnessed good times and bad times in history.... The series of market crashes have, in one way, weakened the stock markets and, in another, strengthened to undertake the challenges and avail opportunities for better future (Johansen, Page: 167, Oxford Bulletin of Economics and Statistics, 1990)....
8 Pages (2000 words) Research Paper
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