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Global Financial Institutions and Markets TABLE OF CONTENTS

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Added on  2020-10-23

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GLOBAL FINANCIAL INSTITUTIONS AND MARKETS TABLE OF CONTENTS Stimulating funds 1 QUESTION 1 1 QUESTION 2 3 QUESTION 3 4 QUESTION 4 5 QUESTION 5 7 QUESTION 6 9 (a)Initial Public Offerings(IPO) 9 (b)Process of Going Public9 (c)Underwriter efforts for price stability10 (d) Initial Returns of IPO10 (e)Abuses in IPO market11 CONCLUSION 12 REFERENCES 12

Global Financial Institutions and Markets TABLE OF CONTENTS

   Added on 2020-10-23

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GLOBAL FINANCIALINSTITUTIONS ANDMARKETS
Global Financial Institutions and Markets TABLE OF CONTENTS_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1QUESTION 1...................................................................................................................................1QUESTION 2...................................................................................................................................3QUESTION 3...................................................................................................................................4QUESTION 4...................................................................................................................................5QUESTION 5...................................................................................................................................7QUESTION 6...................................................................................................................................9(a)Initial Public Offerings(IPO)..................................................................................................9(b)Process of Going Public.........................................................................................................9(c)Underwriter efforts for price stability...................................................................................10(d) Initial Returns of IPO..........................................................................................................10(e)Abuses in IPO market...........................................................................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................12
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INTRODUCTIONGlobal Financial system is a framework which facilitate international flow of moneythrough different markets and institutions provided in system. They had helped in economicglobalization and evolution of different intermediaries such as central bank and improved lawsand regulations for effective international markets(Pilbeam, 2018). The different market wereestablished by them through which investors can easily trade and earn money. Flow of money inmarket had become easier because of these markets. The person who needs money can easily goto these type of market can borrow money. This system also helped government for raisingmoney from general public so they can use this money for there welfare. This present projectreport will depict different types of markets that are available globally for trading and how thismarket can be used to raise money requirement of any individual or organization. The types ofmonetary policy had also been discussed in this report as required by client.QUESTION 1(a) Financial Markets are where public trade in different financial securities at low costs. Therole of these type of markets that it provide access to investors for free trade of there securitiesand commodities(Pilbeam, 2018). Thee can different types of financial markets-:1.Capital Market-: Through which long term finance can be raised. These includes-:1.Stock Markets- These are markets where sale and purchase of shares are therethrough which investor can easily transact and earn profits.2.Bond Markets2.Money markets-: For raising short-term funds through borrowings.3.Commodities Market-: where different types of commodities are traded4.Future Markets-: By which forward contracts are done for future date.5.Foreign Exchange markets-: where trading of foreign exchange facilitate which helpsin purchase and sale of FOREX.The government intervention is necessary in financial markets as because-:1.For Achieving equitable distribution of Income and wealth2.to invest on training and education of investor3.for improving performance of Gross Domestic Product(GDP) of country4.Providing information campaigns by which correct information are reached toinvestor.1
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5.Development of efficient system for regulation of financial markets6.Standard accounting procedures through which financial contracts can easily beenforced7.to mitigate negative effects by refraining loan guarantees8.Restriction of ownership between intermediaries and different class of borrowers9.Better infrastructure for these types of markets10.Competition policy must be made by which new firms can enter into market(b)Stimulative Monetary policyThis is a policy by which economic growth increases by lowering of interest rates,expansion in money supply etc. For Ex-: if central bank of any country reduces reserves of fundsthat are kept by them, there will be more access to cash in with banks so they can lend more inmarket(Kidwell, 2016). So there will be more output by manufacturers and purchase and sale ofpublic will increase and that will lead to increase in GDP of that country. The effects ofstimulative monetary policy are-:1.Increase in economic growth- As there will be flow of excess money inmarket, purchasing power of any person will increase and that will lead toeconomic growth. 2.Decreases unemployment- The cash flow will increase in market, somanufacturer will increase there production and for that they will needemployees so it will lead to decrease in unemployment.3.Increase inflation- The more is purchasing power than there will be excesspurchase and sale in market, So, there is general rule that when demand ofanything increase prices automatically inflate.The failure of stimulative monetary policy because of-:1.Whenever money supply increases the person who are holding more money than they desirewill result in buy more assets and it will lead to disequilibrium in economy(Fligstein, 2015).2.More money will be there in economy that will lead to inflation and poor people has to paymore cost.2
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