The Corporate Use of Time Value of Money

Paper Summary:

This paper looks at how corporations use applications to manipulate the time value of money in order to achieve a profit. The paper first looks at how some of the financial applications used include capital markets along with components of interest rates. The paper then looks at how international markets are a growing viable resource for funds when executing the various strategies. The paper concludes that combining all of the above successfully is the key to maximizing the effect of time value of money.

From the Paper:

"The three major laws that govern security markets include the Securities Act of 1933, Securities Exchange Act of 1934, and the Securities Acts Amendments of 1975. In response to the stock market crash in 1929 the securities Act of 1933 was enacted by Congress. "The legislation wanted to ensure more transparency in financial statements so investors can make informed decisions about investment, and to establish laws against misrepresentation and fraudulent activities in the securities markets." (Daniels, 2005) The Securities Exchange Act of 1934 was created to protect the public by regulating transactions of the secondary market brokers and dealers."

Sample of Sources Used:

• Block, S, & Hirt, G (2005). Foundations of financial management. New York: The McGraw-Hill Companies.
• Daniels, R. (2005). Securities Exchange Act of 1934. Retrieved on April 21, 2008 from http://www.austlii.edu.au/au/legis/vic/consol_act/sia1975261/

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