Financial Markets and Corporate Strategy
Added on 2020-03-28
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Global Fixed Interests and Share Investment OpportunitiesCourseInstructorInstitutionLocationDate
Global Fixed Interests and Share Investment OpportunitiesIn this paper, the countries considered for this study include Canada, the United States of America and the United Kingdom. Their specific performances will later be compared to the Australia financial market to have a global scenario of the field drawn. Interest rates and share investments in these countries, like everywhere else around the globe are determined by their specific economic environment which results from many external factors (Holston, Laubach and Williams, 2017). In addition, they insist with other factors constant, inflation is a major player in determining the interest rates in a country. The trade is a popular investment with investors engaging in the both domestic and the international levels. Over the recent years, use of the internet has been known to play an important role in the financial sector as it does with every other sector. Preis, Moat, and Stanley (2013) declared that the trend in the stock markets can be determined accurately by observing the information available in the search engines. For instance, if a company happens to generate a negative headline, then its stock shares value drops instantly thus making loss worth a huge amount of money in a very short time. In addition, they claimed that the more a product was frequently viewed on the search engines, the more people were interested in purchasing it hence the survey to determine the move to invest will be productive (Preis, Moat & Stanley).Canada Financial MarketGovernment bonds are a common investment for individuals whose aim is to make a fixed profit within a specific period of time in many countries around the world. In the case of Canada, where lending can be done to the regional governments, the entrepreneur would be discouraged due to the possibility of risks that may, in the long run, lead to lower chances of
getting back one’s money within the specified time. In this regard, the central government has offered a provision whereby the terms of lending are similar despite the level at which the loan isoffered (Scuknecht, Von, and Wolswijk, 2009 p.16). Khan, (2007, p.1) claims that at around the time he published this paper, there had been witnessed immense transparency in the government bonds since it was taking place on an electronic platform which is easier to verify as opposed to physical files whose volumes used to be large and less efficient to use. The efficiency realized in this technological era has resulted to enlarging the market by opening it up to foreign investors as well as simplifying the process suchthat more individuals can participate within a shorter period of time as compared to when the activities were carried out manually (Khan 2007 p.5).Youngman (2009 p.1) insist that concentration of banks in financial market was as a result of crisis experienced in the sector. Apparently, the view presented is that this evolution of the institutions has been able to plan and come up with strategies that are conscious of the possible risks that may be encountered in the future. Youngman (2009 p.3) claims that there are improvements within banks to better the services and financial market with time which involves learning new trends in the industry and coming up with means of curbing them for the benefit of the entire market.The United States of America Financial MarketReinhart and Rogoff (2008, p.340) indicates that in 2007, the country witnessed a reduction in wealth and increased challenges in the credit availability as well as escalating risk margins. They claim that the crisis resulted from low prices of the housing at the time, which attracted buyers with low-income and resulted in high loan defaulters thus affecting the whole
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