StudentShare solutions
Triangle menu

Financial Markets - Assignment Example

Not dowloaded yet

Extract of sample
Financial Markets

Therefore, it is considerably important that shareholders and financial directors have an excellent understanding of the financial setting in which they conduct their activities. It is important to note that a strong financial environment plays a significant role in economic expansion and prosperity. The many corporations increasing funds to finance investment expenses as well as shareholders saving to gather resources for future expenses require stable financial markets. A rapid improvement in technology has also played a significant role in the expansion of financial markets. It has been made easier to make cross border transactions. The function of trust and in the financial market and institutions cannot be overemphasized. This is for the reason that transactions carried out throughout the financial markets and institutions depend on trust that everyone is up to the good of the other. It is unfortunate that much as technological development and globalization has improved the efficiency, reports have emerged of extra-large scandals in the financial markets around the globe with the potential of crippling state or global capital raising mechanism as well as dreadful complication on the economy .Scandals in the financial markets such as; The LIBOR incident emerges as one of the worst with the potential of killing the industry. The JPMorgan incident and The Facebook initial public offer. These scandals emerge as the worst with the potential killing of the industry. The thesis of this discussion paper is based on the ‘the effects of technological expansion and globalization on the global financial markets’ particularly in the London financial market. The following issues will be discussed in the paper. Various aspects of the financial markets such as, What it means and what it does in spurring economic growth. Observable crises within the London financial market with its associations with globalization and technological growth A summary of the key issues discussed. Abstract This paper discusses different aspects of financial markets. It has recognized that the strong financial environment promotes economic growth in any state. The financial market also plays a significant role in the economic environment since it enables major firms to obtain funding for facilitating investments. The development in technology, telecommunications and globalization has promoted the growth of financial markets. Indeed, the expansion has taken place in the financial markets within national boundaries and worldwide. The thesis for this paper was that much as technological progress and globalization has promoted in the financial markets, reports have also emerged showing that these instruments have also presented a crisis in equal magnitude and measure. Research in this paper has established that computer glitches have had serious consequences in the London Stock Exchange (LSE) because of network failures or technical challenges. The technical incidents resulted in the suspension of trade for hours. Globalization has also presented varied threats and risks in the financial markets including the absence of transparency. This has increased cases of assumption among investors. In addition, the financial markets in diverse nations access information differently. This is a danger because it enhances negative choices of investment and a lack of responsiveness among the ...Show more


FINANCIAL MARKETS Name: Institution FINANCIAL MARKETS Financial markets are critical areas of money exchanges that guide financial directors and shareholders in making decisions. It is clear that the financial directors and shareholders can make critical economic decisions within the large and a complicated financial environment…
Author : jessieratke
Financial Markets essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the assignment on your topic
"Financial Markets"
with a personal 20% discount.
Grab the best paper

Related Essays

Financial Markets
Investment was made from January, 2011 to April, 2011.I have to invest these amounts through which is a simulation website for investment in stock exchanges. (Anon., n.d.) After performing analysis of different stocks I have identified the following: 1.
3 pages (750 words) Assignment
Financial Markets and institutions
S&P 500 was no different, registering a decline of 1.1% as the market panicked over the Japanese calamity. This was further exacerbated by the situation prevalent in the Middle East, Libya in particular. The fear of supply shocks in the oil production triggered panic selling of oil stocks, which saw the benchmark index fall.
8 pages (2000 words) Assignment
Macroeconomics of Financial Markets
Question One A rising dollar makes goods produced in the US expensive in other countries and while goods produced in other countries become cheaper for consumers in the United States. Thus, a rising dollar makes imports cheaper in the US and exports expensive in other countries (Mishkin, 2010).
9 pages (2250 words) Assignment
Financial Markets and Instruments
In most of these cases therefore, there is over the counter payment using various instruments. A typical of these instruments is the use commercial paper. In the Kingdom of Saudi Arabia, the use of commercial paper is governed by a Royal Decree No 37 of 10.11.1383 AH (Drucker, 2011).
6 pages (1500 words) Assignment
Union, such as the Czech Republic, currently provides considerable incentives for companies that wish to offer foreign direct investment or simply establish a new base of operations and production. As one example, Hyundai Auto was given incentives that equaled 18 percent of its
1 pages (250 words) Assignment
Macroeconomics of Financial Markets
Thus, a rising dollar makes imports cheaper in the US and exports expensive in other countries (Mishkin, 2010). Foreign businesses that would like to purchase goods in the US
9 pages (2250 words) Assignment
Financial Markets and Institutions homework
The Stock Markets are entities where companies sell their partial ownership in the form of shares in order to raise capital. The raised capital then in turn is used in order to finance the companies’ operations (Wurgler, 2000). The Bond Markets are places
3 pages (750 words) Assignment
International Financial Markets
However, diversification is among the two common technique of reducing risks in investments other than hedging. It banks on the absence of a stiff and positive relationship between
5 pages (1250 words) Assignment
Financial Markets & institutions
They are flexible and available in any denomination and ave associated low risks as they are traded with companies that bear high credit ratings (SCHWAB and LYNCH,
2 pages (500 words) Assignment
Financial Markets
In general, financial markets are referred to as markets used in raising finance. In other words, a catchall for all markets in the financial sector is encompassed in the financial market. These include
4 pages (1000 words) Assignment
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation