Abstract This paper compares Bulgarian and American financialmarkets, institutions and instruments on the level of existence and development. Following a comprehensive comparison table is the actual explanation of every type of financialinstitutions/instrument in the context of its development in Bulgaria. A part of the paper points financialinstitutions/instruments that exist in Bulgaria but not in the USA. Another part of the paper proposes development of the most needed financialinstitution at present.
From the Paper "One of the institutions that does not exist in the United States but is present in Bulgaria regards the central bank of the country. Bulgarian National Bank was created in 1879 and was initially functioning as a regular bank. During the Communist regime in the country its operation was terminated and in 1991 was resumed with the acceptance of the Central Bank Law and The Bank and Credit Law. These laws were changed significantly in 1997 when Bulgaria was placed under Currency Board. Presently the central bank is transformed in such a way so that it can work as a Currency Board. Its balance includes both Bank and Currency Board entries. The currency reserve, which includes foreign currency, gold and foreign securities, covers the money in circulation, commercial banks deposits and government deposits. The Lev is tied to the Deutch Mark (1DEM=1Lev). According to the present regulations, BNB cannot give credit the government. Commercial banks are allowed credit but to a limited extent. This is possible only in cases when systematic liquidation risk exists. The maximum period of credit is 3 months and a deposit of gold of foreign securities is required. Yet, the credit of commercial banks is possible only if "surplus" in the balance of BNB exists."
Abstract This paper outlines the main characteristics of hedge funds and looks at how these differ from traditional investment funds. There are over a dozen investment techniques used in hedge fund industry in order to make returns. The paper describes four of them: opportunistic, market neutral - securities hedging, global macro and value investment style. The great size of the assets under management of the hedge fund suggests that they are important clients of investment banks and can play a significant role in the financialmarkets. The paper also takes a closer look at how investment banks work with hedge funds and what impact the hedge funds have on the overall stability of the financialmarkets.
Outline:
Introduction
An Overview of Hedge Funds, Comparison to Traditional Funds and Their Importance as Clients of Investment Banks
Recent Expansion of Hedge Funds
Hedge Funds and Financial Stability
Some Risks Associated With Hedge Funds
Regulation of Hedge Funds
Hedge Funds' Investment Styles
Conclusion
From the Paper "The definition of a hedge fund is an investment institution, which actively manages its portfolio using a large number of strategies and leverage in order to produce high returns, which are measured in absolute terms and/or over a specified benchmark, such as FTSE100 in the UK or the DOW30 in the US. Hedge funds are similar to the traditional investment funds in that they are both pooled and professionally managed, however, there is a number of differences. Unlike traditional funds HFs are practically unregulated and have the flexibility in their trading and investment strategies, e.g. go short when markets are bearish or when a manager thinks that an asset is overpriced and is due a correction (source: Investopedia)."
Abstract Recent years have seen remarkable volatility in UK financialmarkets and, indeed, in financialmarkets around the globe. A number of factors may be said to be responsible for this volatility. These different factors are discussed in turn, with particular emphasis on the impact of the factor on the financialmarkets of the United Kingdom. These topical discussions are followed by a general discussion of the question of influences on markets.
Outline
Introduction
Technology
Globalisation
Corporate Scandals
Terrorism
War
Conclusion
From the Paper "In recent years, technology has had a profound impact on markets in two different ways. First, technology itself has made possible improved and different trading mechanism as well as making real-time relevant information available to investors and funds managers in an unprecedented manner. Second, the technology stock 'bubble,' during which technology stocks soared on speculation only to decline suddenly, impacted markets themselves as well as the fortunes and perceptions of investors. Some analysts point out that technology itself is somewhat value neutral, in that it may be used for purposes that either increase or decrease market stability."
This paper discusses the impact of principles-based regulation on U.K. consumers in terms of restoring their confidence in the financialmarkets, which has been shaken by the recent collapse of some firms.
Abstract This dissertation examines the impact of the sweeping reforms that changed regulation of financial services and markets in UK from the rules-based regime to one based on principles and outcomes. The main concern is to measure the effects of this reform strategy on British consumers, whose welfare and benefit were enshrined in the Financial Services and Markets Act 2007 as the greatest motivating force. The whole dissertation is structured as follows: The research question and objectives are set in the succeeding section, followed by a review of the literature. Then the writer discusses the methodology and presents the results, based on which the writer subsequently formulates a set of recommendations on how the implementation of the principles-based regulatory system can enrich the consumer's experience. The final section draws a conclusion that weighs the advantages and disadvantages of the new regulatory policy as it affects the consumers.
From the Paper "On rules as a product of guesswork, the best that the rule maker can do is to anticipate how the rule will be applied in the future. The problem is that new situations may arise that were not expected or known when the rule was written such that the rule is likely to be interpreted and applied in ways that were not intended or anticipated in the drafting of the rule. Moreover, rules are never perfectly congruent with their purpose and may be over-inclusive and under-inclusive. The rules are under-inclusive when they fail to catch things that the rule maker might want to catch, whilst they are over-inclusive when the rules captured things that the rule maker does not need in applying the rules to a particular set of circumstances. The question is how to minimise rather than avoid these problems, and whether it is preferable to fail to include a type of conduct that should be included if the objectives are to be served, or to include certain conduct that should not be included."
This paper examines the financial development of the Italian economy and measures its effects on its economic growth and compares it to the U.S. financialmarket.
Abstract The following paper compares the GDP growth rates of Italy and the U.S. measures the level of financial development made by both the markets. Finally it examines whether the economy making higher growth with respect to financial development has made higher economic growth. The reason for choosing the Italian economy for comparison is that it is a lesser developed financialmarket as compared to the United States.
From the Paper "There has been a lot of research already done on the issue of identifying a relationship between financial development and economic growth. The questions like does financial development spurs economic growth" To what extent does higher growth induce a reduction in the incidence of poverty? What can financial development contribute in reducing poverty? are continuously part of the economists debate. Generally it is believed that Economic growth is simply the result of refraining from current consumption. Within an economy, there are two general types of commodities. One are the consumption goods and the others are the capital goods. The consumption goods are for the purpose of general consumers use while capital goods are used for production of other commodities. When in an economy there is a lesser consumption of consumption goods by the households, a considerable part of the income is not spent and the result is in the form of positive net savings.?
Abstract An examination of the changes facing the financial planner and advisor in his/her profession. The paper looks at changes in the financialmarkets and trends of investments to show how the relatively simple job of previous decades has transformed into a very challenging one. The writer presents four suggested steps that the financial planner should follow for forecasting solid investments.
From the Paper "Financial planning was an easy route to wealth and success during the 1980s and the latter part of the 1990s. The stock market was riding high, the new wave of high tech stocks posted significant and uncharted gains and investment capital flowed through the American economy freely. In today's economy, however, the financial planning profession is much more of a challenge and a grind. It can be equally rewarding and fulfilling, but it requires more preparation and understanding of the complex markets and of planners? ethical and professional responsibilities to their clients."
Abstract A study of the financialmarket. The author examines the aspects of forecasting such as risk and return in financialmarketing. Includes diagrams and explanations.
From the Paper " Forecasting financial markets plays an important role in business decision-making process. There are many business decisions that need inputs from forecasting results. This is mainly due to the uncertainty of the future events. The business decision-making process would become much easier if you are able to forecast about what would happen in the future. The information provided by the forecasting results such as interest rate, exchange rate, inflation, market index, would be one of the important input for making business decisions. Nevertheless a good business decision is a balanced combination between the basic knowledge of specific series and the forecasting result of particular of data. Therefore, It is not wise only to rely heavily on forecasting results and ignore all the available general knowledge and qualitative information. The forecasting results that are not supported by related basic knowledge could be misleading."
Tags: economics, finance, predcit, money, investment, gain, win, lose
Abstract This paper contends that the primary goal of every corporation is to maximize shareholder wealth, primarily through cash dividends and share value appreciation. It explains that the role of the financial manager is to act in accord with this premise. It expands that this tenet is not without obstacles, corporations must battle with issues such as the agency problem and the backlash of unpopular decisions. The paper reviews the roles of the financial manager in today's financialmarkets.
From the Paper "The primary goal of every corporation is to maximize shareholder wealth primarily through cash dividends and share value appreciation. To this end the role of the financial manager is to act in accord with this premise. Under his/her auspices the financial manager must determine which factors affect the company's stock price and which choices will add value to the company all the while ensuring that the company doesn't run out of the cash necessary for continued day-to-day operations and planned growth strategies ..."
Abstract This paper examines the impacts of international financialmarkets and the way these have impacted world economies and trade.
From the Paper "As monetary, political, trade and other restrictions are eased in countries all over the world, more investors find themselves able to contemplate maximizing their returns in international financial markets or on foreign companies listed on domestic exchanges ? the capital markets have become global; currently, more than 300 companies from fifty countries trade their shares on the NYSE, and are worth about ten percent of the market value of U.S. equities (International Monetary Fund, 1999)."
Abstract This paper discusses the increased responsibilities of the Treasury in financial risk management even as it illumines the workings of the financialmarket, functions of financialinstitutions, characteristics of financial products, purposes of commoditization, and the past and future trends of financialmarkets.
Table of Contents:
Introduction
Risk Management
FinancialMarkets Institutions and Intermediaries
Commoditization
Mark-to-Market Schemes
From the Paper "Of these financial products, trade in hedge funds is the least popular because of perceptions that these funds are fraught with risks. In fact, China closed its derivatives exchange for hedge funds in 2005 when trade in credit derivatives brought losses to hedge fund holders, after an expected default corrections in the corporate credit markets failed to materialize. As a derivatives instrument, the hedge fund is a financial obligation whose value is derived from an underlying asset, reference and index rates or interest rates, the result of a specific event or the price of an underlying asset such as debt equity or commodities."
Abstract This paper discusses various financial and economic topics. It first discusses financialmarkets and their typologies, vis-a-vis investment categories. It then focuses on financial intermediaries and their role within the overall economy as facilitators of market access. Finally, the paper looks at the monetary system as it relates to payment and the current shift to a cashless system and society.
From the Paper "From a macroeconomic perspective financial intermediaries are not viewed as especially important but they do serve an important function related to financial markets because they facilitate market access. Additionally, financial intermediaries provide an extremely useful and relevant source of market research for economists because they have highly accurate predictive models based on the historical data of their customers' investment patterns as well as investment preferences (Karp, Bernard & Schlessinger, 2002). By utilizing such market data, economists and other economic analysts are able to better gauge the direction and health of the overall economy and government policies directed at it."
A concise overview of the role and function of stock markets and financialmarkets, including definitions of many important terms associated with stock market trading.
1,280 words (approx. 5.1 pages), 1 source, 2000, $ 43.95
From the Paper "The management of money resources is one of the basic work in the financial markets. The professional manipulate with financial resources. The basic principle of management of financial resources in the financial markets is that the sum of the general loss for the period should not exceed in the worse case a total sum of the income received. "
A discussion on what investors today want to see on a global basis, how markets reflect discounts from their highs and stock purchases in highly discounted markets as an overall strategy.
Abstract An examination of the many factors investors in global stock markets will have to consider in the next millennium, including whether the value of their shares is driven by the rational estimation of future corporate earnings or whether mass psychology and speculative mania drive the value of their investments. The writer contends that in either case, factors of risk, globalization, currency, regulation and trade will come into play, either in consideration of their effects on social factors, or in the possible or probable profitability of any stock or stock market in an increasingly international environment.
From the Paper ?As monetary, political, trade and other restrictions are eased in countries all over the world, more investors find themselves able to contemplate maximizing their returns in international financial markets or on foreign companies listed on domestic exchanges ? the capital markets have become global; currently, more than 300 companies from fifty countries trade their shares on the NYSE, and are worth about ten percent of the market value of U.S. equities (International Monetary Fund, 1999).Growth in foreign trade and financial activities has rapidly led to closer integration of financial markets around the world. Deregulation, privatization and liberalization has led to an increasing number of markets, banks and brokerage firms, and increased the volume of asset exchange and ownership on a global scale. Facilitated by technology allowing for real-time trading all over the world, globalization of financial and trade markets has been a source of economic growth and prosperity for investors, countries and corporate entities in even the remotest developing areas.?
This paper analyzes the stock market crash of 1987, by tracing its background, the events of the day in the financialmarkets and the effects of the crash on the U.S. and global economy.
Abstract The writer of this well-researched paper compares the events of 1987 to those which occurred in 1926, which brought about the Great Depression. This paper examines the causes and consequences of the 1987 crash, while also discussing the policy responses to the event and its future implications. This paper analyzes the status of the stock market 5 years prior to the crash. From 1982-1987 the Dow Industrial Average had risen from 776 points in August 1982 to a record high of 2,722 points in August 1987. This paper delves into the warning signs that were evident, prior to the crash, yet were largely ignored, including a weakening U.S. dollar, a rising trade deficit, inflation and the first short term interest raise in 3 years by the Federal Reserve. The writer discusses how the crash not only affected the U.S. stock market, but markets around the world as well. This paper looks at the U.S. trade and budget deficits that rose steadily during the 1980s, which have also been blamed for the crash. This paper delves into how the Federal Reserve responded to the crash, while also examining the reform measures taken to prevent a similar disaster in the future.
Table of Contents:
Introduction
Background
An In-depth Look at the Crash
Causes of the Crash
Federal Reserve's Response
Reform Measures
Conclusion
Works Cited
From the Paper "In the wake of the crash of 87 many analysts, including a presidential task force, laid the blame for the decline squarely on portfolio insurance. As evidence, they quoted the fact that portfolio insurance alone accounted for 12% of the selling in stock and index futures markets on October 19, 1987. According to the "blame portfolio insurance" theory, portfolio insurers came to the Monday's opening armed with an overhang of unexecuted sell orders from the accelerating decline of the previous week and placed large sell orders to initiate the decline in the market. From then onwards, as the market declined further during the day, the sell orders by the portfolio insurers kept on increasing to cater for their back log. To make matters worse, other investors who were not familiar with portfolio insurance, saw the declining prices and assumed that the selling was based on fundamentals and joined the queue of sellers; thus perpetuating the vicious circle."
Abstract American financial system consists of numerous commercial banks, Mutual savings Banks, Credit Unions and of course the most powerful institution, the Federal Reserve Board. These institutions are responsible for controlling the operations of the financialmarkets but the capitalist system of economy has rendered the task difficult. This is because while the financial system is supposedly under the control of these institutions, the financialmarkets they have created are wild and volatile and rarely cooperate with these institution or their policies. Therefore some regulatory tools have to be applied in order to bring some stability to the financialmarkets but events of recent pasty indicate that tools are now less effective and some sound changes are required in the restructure of the financial system of United States.
