Financial Market and Capital Budgeting Analysis

Research on Financial market
and Capital Budgeting Analysis
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Comparison of four key financial institutions.............................................................................3
Explanation of the meaning of capital budgeting, capital structure and working capital
management.................................................................................................................................3
TASK 2............................................................................................................................................3
Fact finding of the listing on ASX...............................................................................................3
Fact Finding of requirements on Financial advisory service registration in Australia................3
TASK 3............................................................................................................................................4
Risk analysis and project evaluation............................................................................................4
CONCLUSION................................................................................................................................4
REFRENCES...................................................................................................................................4
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INTRODUCTION
Financial market is a market which provides trade facilities to business organizations. It
provides investors can able to buy or sell securities for first time and buy existing securities.
This report is prepared on the basis of deep research of financial market of Australia, elements of
financial market. Procedure of their work. This report also includes the way an organization
able to list within the Australia Security Exchange and all the essential procedure, documents
and stapes required for being listed in the stock exchange. This report also contain the meaning
of financial advisers, requirement duties of financial adviser, it also define use of capital
budgeting ,capital structure for formulating of organization and importance of working capital
regarding management of current assets.
TASK 1
Comparison of four key financial institutions
Portfolio investor: Portfolio is a collection of investments all owned by the same individual or
organization (Venmans, 2014). Theses investment often included stocks, which are investments
in individual business bonds which are investment in debts that are designed to earn interest and
mutual funds . The person who invest in the portfolio is known as portfolio investor. They are
invest in various gripou of securities of financial institutions which describe below in order to
enhance their return.
Financial institutions: These can be describing as business organizations that act as mobilise and
depositors of saving and as purveyors of credit of fiancé. They also provide various financial
services to the community. Portfolio investors invest their money in financial institutions as they
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can able to spread risk and maintain liquidity and provide higher rate of return as compare to
other financial system elements. Financial institutions of Australia include banks, finance
companies, superannuation funds, life insurance unit trust companies and investment banks
(Garg and Dua, P., 2014).
Commercial banks: A commercial banks is an institution that operates for profit. It accepts
deposits from general public and extends loan to the households. In Australia the banking sector
is run by 4 big banks, National Bank o Australia, ANZ, Common wealth banks and Westpac
commercial bank. In this report for comparison Australia bank has been taken,
Insurance companies: Insurance may be described as financial device or contract to mitigate or
eliminate risk of loss to life and property. The companies who provide the facilities of insurance
to investors are known as insurance companies. Australia market of insurance is divided into 3
major parts. Life insurance companies, general insurance companies and heath insurance
companies.
Investment banks: These are the banks that aid companies and acquiring funds. In addition to
the accusation of new funds, knew investments banking also offer advice for a wide range of
transaction of companies. Allianz organization has been taken for comparison purpose in this
report.
Investment funds: These are the organizations which managed funds of investors with other
people. In this money is applied together with the other individual money and organizations
invest it for aching common investment goals. Intermeddle global equities fund has been taken
for comparison.
COMAPRISION BETWEEN FINANCAIL INSTITIUTIONS OF AUSTRSLIA
Particular Australia bank ANZ
investment
bank
Allianz organization Australian
Ethical
investment
Group of
financial
institution
Authorised
deposited taking
institution
Authorised
deposited
taking
institution
Non Authorised
deposited taking
institution
Non Authorised
deposited
taking
institution
Market sector Oligopoly Monopolistic Perfect Monopolistic
business Accept deposits Theses bank This organization They help in
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