StudentShare solutions
Triangle menu

Financial Markets and Risk - Essay Example

Nobody downloaded yet
The major sources of long term finance in the capital markets are actually the products provided to the consumer for long term investment. The consumers are assumed to be rational in their choices among the various alternatives presented. The choice of the product to use will depend on: time element, a cost of finance, flexibility and the mode of payment. Long-term investment products provide funds that may be used usually for more than five years. They include:
Share capital - this consists of both ordinary share capital which is contributed by the real owners of a limited company and it is not redeemable and the preference share capital. This is contributed by the preference shareholders.
Retained earnings provisions - these are part of the profits which belong to the ordinary shareholders and are not paid to them in the period they are earned.
Debentures or long-term loans - a debenture is the written acknowledgment of a debt incurred by a limited company.
Mortgages - the consumers and companies can get loans for long periods by mortgaging their assets with any mortgage brokers or any other financial institution.
Sale and lease back - a company which owns its own premises or fixed assets can obtain finance by selling the property to an insurance company for immediate cash and renting it back.
The cost of finance or the product depends on the terms of finance, nature and size of the business, availability of the product, the nature of security, growth stage of the company and government influences through the central bank. ...Show more
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Financial Markets and Risk Essay Example | Topics and Well Written Essays - 1000 words - 6”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/472167-financial-markets-and-risk
(Financial Markets and Risk Essay Example | Topics and Well Written Essays - 1000 Words - 6)
https://studentshare.net/finance-accounting/472167-financial-markets-and-risk.
“Financial Markets and Risk Essay Example | Topics and Well Written Essays - 1000 Words - 6”, n.d. https://studentshare.net/finance-accounting/472167-financial-markets-and-risk.
  • Cited: 0 times

Summary

The author of the paper "Financial Markets and Risk" comments on the marketing issues. It is mentioned here that the current state of the economy is greatly influenced by business performance. Financial institutions facilitate financial transactions and events in any economy. …
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Financial Markets and Risk"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Financial Markets and Risk
It ensures a continuous process of daily operations and the ability to meet future capital requirements. As an example, absence of sufficient amount of capital in reserves due to excessive lending to customers might cause the cause cash crunch in the banks.
10 pages (2500 words) Assignment
Financial Markets and Risk
Interest rate changes affect individual savers and banks directly and indirectly. The monetary regulatory authority has to consider all these factors before determining the interest rate. I. Long Term Savings and Investment products of retail banks and non-banking financial intermediaries (NBFI’s) Long term investments are those investments which are made for a solid period of time.
4 pages (1000 words) Essay
Financial Markets and Risk
It therefore enables borrowers and savers to meet in the most efficient manner. It is also fundamental to note that this market facilitates economic transactions by hedging and trading in resources and goods. An efficient financial market will enable capital allocation to investments that provide maximum return.
4 pages (1000 words) Essay
Financial Markets and Risk
It is up to the return expectation and risk appetite of the investor to choose the right product. For high risk taking investors, there are products that invest in stock markets and other volatile markets. Funds that focus on bonds, debt instruments etc. are preferred by low risk taking investors.
4 pages (1000 words) Essay
U.S. involvement in Iraq
U.S. involvement in Iraq The involvement of USA, the self proclaimed policeman of the world, in Iraq was strategic and stretched over a longer period of time. It must share due responsibility for the loss of hundreds of thousands of lives during the period it supported the Saddam Hussein regime and also after the invasion of that country in 2003.
2 pages (500 words) Essay
Information and Communications Technologies
Management accountants support business decision making, planning and control. Management accountants are business partners who directly support the company's strategic goals (IMA 2008). The job of a management accountant requires knowledge of finance, accounting, budgeting, and cost control principles including Generally Accepted Accounting Principles or GAAP.
6 pages (1500 words) Essay
Financial Markets & Risk
nisation’s obligation to maximise its positive impact and minimise its negative effects in being a contributing member to society, with concern for society’s long-run needs and wants. CSR means being a good steward to society’s economic and human resources.” The World
7 pages (1750 words) Essay
Financial Markets & Risk
This understanding was signed for creating financial stability in England. It has four guiding principles in mind. Its responsibilities and powers are well
14 pages (3500 words) Essay
Financial Markets
Other organizations of such type are the following ones: a) the Financial Services Agency – in Japan, b) the ‘Autorité des marchés financiers’ – in France, c) the China Securities Regulatory
4 pages (1000 words) Essay
Financial Markets and Risk
Interest rate changes affect individual savers and banks directly and indirectly. The monetary regulatory authority has to consider all these factors before determining the interest
4 pages (1000 words) Essay
Financial Markets and Risk
4 pages (1000 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Financial Markets and Risk for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us