Principles of Financial Markets

PRINCIPLES OF
FINANCIAL MARKETS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
A. Analysing economic environment of Australia with the help of top down analysis.........1
B. Determining financial health of businesses with the help of Bottom up analysis.............2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
The operational practices and the efficiencies of financial market in the long run is that
there has been several variations in operations. Therefore, main motive of stock market is to
bring transparent and reliable information of an entity among the group of investors. It helps the
firms in collecting appropriate capital for development of operational practices. However, in the
present report, there will be discussion based on financial performance of Adelaide Brighton Ltd.
and BHP Billiton Ltd. These firms are operating in material manufacturing segmentation and
will be analysed on the basis of their financial analysis.
A. Analysing economic environment of Australia with the help of top down analysis
To analyse the financial capabilities of Australia stock exchange is that there will be
effective operational control over the business activities as well as operational practices of the
firm in the given period. The economic environment of Australia will be analysed over various
economic elements such as:
Current interest rate: 1.5%
Current AUD value: 0.76 USD = 1 AUD
Current GDP: 1.2 lacs crores
Inflation rate 1.97%
Business life cycle and current operations
To survive in the highly competitive world, there is need to have appropriate business
operations which in turn will be effective and helpful to have appropriate measurement of
operations (Da Silva and et.al., 2017). However, in relation with such facts, it can be said that
there is need to have administration of the financial stability and internal business objectives of
industries.
BHP Billiton
The genre of the business is that it mainly operates the operations in the material
manufacturing units, has mines operational activities and deal in metal and petroleum products.
It is the world's largest isolated market in capital market economy of Australia. However, in
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