Financial Institutions & Markets – 1

Financial Institutions & Markets – 1

Contents
INTRODUCTION & BACKGROUND......................................................................................................3
MAIN BODY..............................................................................................................................................3
Problem statement:..................................................................................................................................3
Research question:...................................................................................................................................4
Literature review:....................................................................................................................................4
Discussion.................................................................................................................................................12
Conclusion and recommendations.............................................................................................................12
REFERENCES..........................................................................................................................................14

INTRODUCTION & BACKGROUND
The FI is a business which deals with payments such as deposits, loans, investments and
the exchange rates, both economic and currency. Investment firms include a broad range of
financial services business practices from finance, trust, brokerage, investment and securities
supplies. Virtually everybody in a developing economy has a constant or at least intermittent
requirement for banks' services. A financial market is a system that exchanges financial
instruments and options at low expense. Few stocks and shares and commodities contain bonds.
The project report is based on analyzing of Abu Dhabi stock exchange market and Dubai
financial market.
Abu Dhabi Securities Exchange (ADX) has also been known as the Abu Dhabi Securities Market
(ADSM). ADX is participating in mid east shares trade level with United Arab Emirates (UAE)
share Dubai Financial Market (DFM) (About Abu Dhabi Securities Exchange, 2019). It decided
to work with NYSE Euro next on innovations. The Dubai Financial Market was founded on 26
March 2000 and the DFM had accomplished considerable achievements and growth in its brief
existence, due largely to the supportive help and commitment shown by its respected business
partners, employees and stakeholders (About Dubai financial market, 2019).
MAIN BODY
Problem statement:
A problem statement is a succinct explanation of a problem that needs to be solved or
strengthened. It measures the difference between the present state of a system or service and its
desired condition (Ewing and Malik, 2016). In the project report is based on problem statement
which is related to analyzing Abu Dhabi stock Exchange Markets (ADIX) and Dubai Financial
Market (DFM).

Research question:
A research question is "a question to be answered by a research project." The collection
of research problems is a key component of quantitative and qualitative analysis. Work includes
data analysis, and its approach varies widely. Herein, below some research questions are
mentioned that are as follows:
 What is nature and development of Abu Dhabi stock market and Dubai financial market?
 What is difference between Abu Dhabi stock market and Dubai financial market?
 What is benefit and drawbacks of long term capital market?
 Which types of financial market securities are used in ADIX and DFM?
 What are strategies which are used in future market for reducing financial risk?
Literature review:
A literature review is a literature quest and examination of the topic or issue. It records
the latest technology about the subject or topic on which users are writing (Paramati, Ummall
and Apergis, 2016). A literary analysis seeks to examine the research in the field of study.
Herein, below literature review of above mentioned questions has been done in such manner:
1. What is nature and development of Abu Dhabi stock market and Dubai financial market?
According to Ewers (2017) The Abu Dhabi stock markets is a transfer of stocks in Abu
Dhabi, UAE. Abu Dhabi Securities Exchange (A.D.X.; previously Abu Dhabi Securities
Market (ADSM): or the exchange of rights is a foreign exchange in the US (Arabic). or
the first-time sale of stock in Abu Dhabi, UAE). It was founded by UAE corporations on
15 November 2000. In Abu Dhabi, Al Ain, Fujeirah, Sharjah and Ras Al Khaimah, there
are trade points. Dubai Financial sector (DFM) is a separate market which sells stocks in
other UAE businesses, but ADSM stocks with some traders based on DFM can also be
exchanged by shareholders. The ADSM is mentioned by more businesses than DFM, but
the quantity of trading is often far less. The stock prices and market volatility rose