...In the financial markets, there are Primary Markets and Secondary Markets. Explain and elaborate on the both markets. What are some differences to an Investor? Which market would an investor want to trade in if they knew there would be a large demand in a market on a later date? There are two types of financial markets available they are Primary Markets and Secondary Markets. A Primary Market is when the company issues stocks available for purchase. The company determines how many stocks they want to offer and what they want the stocks to sell for. In the primary market all money made from stock sales go directly to the company that is selling the stock. In contrast to the primary markets are the Secondary Markets. In Secondary Markets the stocks are already in circulation and have been purchased by investors. The price each share sell for is relative to the amount of shares available and the demand for the stocks. The price that the stock sells for may be higher or lower than the original sale price that the stock holder paid for it. An investor that is looking to make a large profit is most likely going to trade in the secondary market. The investor is hoping to buy stocks when they are at a market low or selling below the original issue price. If they think the market is going to suddenly increase the ideal is to buy when the market is low in the secondary market and hold onto those stocks until they increase to what the investor thinks is the highest point and then...
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...Tutorial lecture 1 --------------------------------------------------------------------------------------------------------- FIN 111-Tutorial Questions (Spring 2012) Lecture 1- Introduction to Financial Management Q 1. 1- The Financial Management Decision Process What are the three types of financial management decisions? For each type of decisions, give an example of a business transaction that would be relevant. Q 1. 2- Sole Proprietorship and Partnership What are the four primary disadvantages to the sole proprietorship and partnership forms of business organization? What are the benefits are there to these types of business organization as opposed to the corporate form? Q 1. 5 - Goal of Financial Management What goal should always motivate the actions of the firm's financial manager? Q 1. 6- Agency Problems Who owns a corporation? Describe the process whereby the owners control the firm's management. What is the main reason that an agency relationship exists in the corporate form of organization? In this context, what kinds of problems can arise? Q 1.9- Not For Profit Firm Goals Suppose you were a manager of a not for profit business (a non-profit hospital), What kinds of goals do you think would be appropriate for this firm? Q1. 14- Executive Compensation Critics have charged that compensation to the top management in Australia is simply too high and should be cut back. For example, focusing on large corporations, Ralph Norris of...
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...Sukuk can be defined as Islamic bond, it has been the most active Islamic debt market instrument. It is also known as the Islamic securities in the market today. Literally, Sukuk means certificates. Sukuk also can be defined as certificates of equal value that represent an undivided interest (proportional to the investor’s interest) in the ownership of an underlying asset (both tangible and intangible), usufruct, services or investments in particular projects or special investment activities. Through this concept, sukuk enjoy the benefit of being backed by assets, thereby affording the sukuk holder or investor a level of protection which may not be available from conventional debt securities. Furthermore, unlike conventional debt securities that mirror debts or loans on which interest is paid, sukuk can be structured based on innovative applications of Islamic principles and concepts. Nonetheless, sukuk share some similarities with conventional debt securities, in that they are similarly structured based on assets that generate revenue. Each sukuk has a face value (based on the value of the underlying asset), and the investor may pay that amount or (as with a conventional bond) buy it at a premium or discount. Modern day Sukuk have sorted out the original concept to create certificates representing undivided shares in the ownership of: • Tangible assets • Usufruct of an asset • Particular projects or special investment activities. Compared with the conventional bond...
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...Contributions of survey questions for primary research for new/revitalized repurchased spa. Product Description: Health and Wellness Spas are everywhere. We are offering a spa that will reconnect your mind, body and soul. It will be a place of refuge and a safe haven to revive your energies, redirect your thoughts and actions in the aim of being whole again. We will offer you exotic services to help you attain this measure of revitalization and peace. Please take a few moments to answer a few questions below. 1) Do you take a few minutes each day to quiet your mind and breathe deeply? a. Yes b. No 2) Are you familiar with: Very Familiar Somewhat Familiar No c. Aromatherapy and its benefits d. Hot stone massage e. Oriental Foot Massage f. Acupuncture g. Thai Yoga Massage h. Yoga exercise i. Spa Parties j. How to change your nutrition habits 3) Which of these services are you most likely to choose? k. Aromatherapy - mixture of natural oils inhaled or rubbed into the body to bring about psychological or physical wellbeing. l. Hot stone massage – heated stones are placed at strategic points on your back and the stones warm and relax the muscles. It is believed to improve circulation and calm the nervous system. m. Oriental Foot Massage – a form of reflexology bringing healing through pressure points on sole and to of feet. n. Acupuncture – ancient Chinese healing through...
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...plant and Analysis of Fill rate, Stock maintenance, Primary movement of iDAS distributors" focused on surfacing out the losses that HCCBPL is bearing and to find the measures for its eradication. The project consisted of 3 objectives: The 1st objective was to surface out the non moving / slow moving stocks that are the potential Best Before Due Date stocks (BBD's) and to automate the process on weekly basis - For that I analyzed the stock movement of a week and created a macro which can be run on weekly basis and will showcase the potential BBD's. The macro is already implemented in Khurda plant and there is no stuck out probability of BBD stocks in Khurda now. The 2nd objective was to create an MIS to provide an accountability of bottlenecks on indirect approach of distribution at distributor point. For that I understood the Improvised Distribution Automated System (iDAS) reports well, found out the reports which are beneficial for RTM Managers to see regularly so that the problems can be accountable. The analysis is done by the data gathered from the iDAS Fill rate report and created an MIS to identify the major stock out Stock Keeping Units (SKU's) and area which has got a greater market issue i.e., area and outlets where the stocks are not delivered as per the order can be easily detected and steps can be taken to solve the issues. The 3rd objective was to analyse the stock maintenance and primary movement of iDAS distributors. I showed a trend...
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...1. Introduction ICMA’s Primary Market Certificate (formerly known as the IPMA Diploma) is a second level qualification intended for persons working in the origination, syndication and transaction management areas of investment banks or securities houses. It is also a valuable qualification for capital markets lawyers looking to expand their understanding of the workings of the primary markets and for those employed in institutions that may be looking to raise funds in the international capital markets. The Programme is most suited to those in the early stages of focussing on primary market activities, but is open to anyone who would benefit from a more complete knowledge of the debt primary markets. This unique certificate programme examines the entire life cycle of bond issuance, from considering the financing choices through to the closing of transactions in the marketplace. While the course examines the theoretical principles underpinning the markets and the instruments and financing techniques that are available, emphasis is placed on interpreting and using that knowledge in practical case studies. In addition, due to the dynamic nature of the primary markets, the programme emphasises current market practice and much use is made of market practitioners to discuss key areas. Candidates who gain this qualification therefore will have all the requisite tools to add value now to their company’s activities in the Primary Markets. As a second-level qualification...
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...Chapter 6: Understanding Financial Markets and Institutions Financial Markets * Manage flow of funds * Two major market dimensions: _________ versus _____________ markets ________ versus __________ markets * Primary Markets * Used by corporations and governments * Used to issue _______ financial instruments * Stocks * Bonds * Primary Market Transfer of Funds * Demanders of funds __________________ * Initial suppliers of funds _____________ * Secondary Markets * Benefit investors and __________ * Securities traded _______ issue * Provide ____________ and diversification benefits for investors * Security _____________ information for issuers * Secondary Market Transfer of Funds involves: * Financial ______________ * Securities ___________ * Other suppliers of ________ * Money Markets vs. Capital Markets * Money markets trade _______ securities or instruments with maturities of one year or _____ * Capital markets trade _________ and long- term _______ with maturities __________ than one year * Other Markets * Foreign Exchange Markets * Trade ____________ for immediate delivery (spot) or for some future delivery * Subject to foreign exchange risk due to currency ______________ * Derivatives * Highly _______________ financial securities linked to underlying...
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...world, and many people remain hesitant to accept that Wal-Mart has fundamentally changed its ways. After having students read this case, instructors may want to ask whether they believe Wal-Mart is inherently unethical, or whether they are convinced the giant has changed its ways. As Wal-Mart has grown, its strategy has changed. Could its new push into sustainability and social responsibility be driven by profits, not by a real desire to clean up its act? In the 1970s, Wal-Mart’s strategy was to go into secondary markets, meaning communities with fewer than 10,000 residents. The company’s logistical strategy was to grow out from Bentonville, Arkansas in order to gain channel economies of scale. By attacking secondary towns, the competition, normally small independents, could not compete on price and closed down. This, combined with the throw-away culture of the times (low quality-low price), helped Wal-Mart grow rapidly which enabled it to enter primary markets (communities over 10,000). During the 1980s outsourcing to lesser developed countries became the norm. In the...
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...Chapter 2 1. ‘A highly developed and efficient financial system is essential to ongoing economic growth and prosperity.’ Discuss the component parts that form a financial system and the relevance of the above statement. Component parts of a financial system: -financial institutions—example: banks, insurance offices, superannuation funds -financial instruments—example: shares, term deposits, loans -financial markets—money and capital markets, stock market, foreign exchange market Discussion: -financial system supports economic transactions -encourages savings which provides funds for investment -provides a range of investment opportunities -provides a range of borrowing alternatives -efficient allocation of resources for economic growth -regulatory regimes provide strength and stability to a financial system 2. (a) Discuss the role of money in a financial system. -money is a financial asset that facilitates financial and economic transactions -a medium of exchange—swapped for goods and services -a store of value—wealth is held or measured in money terms -a standard of deferred payment—used to record indebtedness -a unit of account—transactions are priced in money terms -currency is generally divisible, portable and durable (b) Does money have to be currency? If not, what are some alternatives? -money is anything that is universally acceptable as a medium of exchange -further, money generally has the characteristics of being divisible and...
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...topics include: 1) The capital market, how the primary market differs from the secondary market, and in the student’s opinion are these markets efficient, and why. 2) The three primary roles of the U.S. Securities and Exchange Commission, how the Sarbanes-Oxley Act of 2002 augments the SEC’s role in managing financial governance, and if the writer thinks the passage of this act had the outcome of businesses becoming more ethical. Examples will be used to support this thinking.3) Ratios which measure a corporation’s liquidity, some problems associated with using these ratios, and how the DuPont analysis would overcome these problems. The DQ’s will be stated, and then the Discussion Answers will be explored below. DQ 1 – The Capital Market What is the capital market? How is the primary market different from the secondary market? In your opinion, are these markets efficient? Why? Discussion Answer 1 The capital market is “Any market in which securities are traded. Capital markets include the stock and bond markets.” (Farlex Financial Dictionary 2009) “Traditionally, this has referred to the market for trading long-term debt instruments (those that mature in more than one year). That is, the market where capital is raised. More recently, capital markets is used in a more general context to refer to the market for stocks, bonds, derivatives and other investments.” (Harvey 2011) The primary market differs from the secondary market. Primary Markets are Transactions insecurities...
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...same amount in the | | | |future due to its potential earning capacity. | | |Efficient market |An investment theory that states it is |Www.Investopedia.com | | |impossible to “beat the market” because stock | | | |market efficiency causes existing share prices | | | |to always incorporate and reflect all relevant | | | |information. | | |Primary versus secondary market |The difference between the primary capital |Www.Investopedia.com | | |market and the secondary capital market is that | | | |in the primary market, investors buy securities | | |...
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...It is a market where all important information is available to all people involved at the same time and where the price responds immediately to the available information. | The primary markets deal with the trading of newly issued securities. The corporations, governments and companies issue securities like stocks and bonds when they need to raise capital. The investors can purchase the stocks or bonds issued by the companies. The secondary market is that part of the capital market that deals with the securities that are already issued in the primary market. The investors who purchase the newly issued securities in the primary market sell them in the secondary market. The secondary market needs to be transparent and highly liquid in nature as it deals with the already issued securities. In the secondary market, the value of a particular stock also varies from that of the face value. The resale value of the securities in the secondary market is dependent on the fluctuating interest rates. | Higher risk is associated with greater probability of higher return and lower risk with a greater probability of smaller return. This trade off which an investor faces between risk and return while considering investment decisions is called the risk return trade off. | Conflicts of interest and moral hazard issues that arise when a principal hires an agent to perform specific duties that are in the best interest of the principal but may be costly, or not in the best interests of the...
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...CHAPTER 4 Securities Markets REVIEW QUESTIONS 4-1. The third market involves OTC transactions in securities listed on the organized exchanges. The fourth market involves direct transactions among large institutions, bypassing intermediaries such as brokers and dealers. Level of Difficulty: Medium Topic: The Third and Fourth Markets 4-2. The primary factors accounting for the rapid changes in securities markets are: • Pressure by institutional investors who have emerged as the dominant force in the market • Computerized trading of securities Level of Difficulty: Medium Topic: The Changing Securities Markets 4-3. The S&P/TSX Composite Index measures changes in market values of a portfolio of Canadian stocks due to changes in the total market capitalization of these stocks. Level of Difficulty: Medium Topic: Canadian Market Indexes 4-4. The Dow-Jones Industrial Average is a price-weighted average of 30 large (blue-chip) stocks trading on the NYSE. The S&P 500 Composite Index is a market value index consisting of 500 stocks, with a base period set to 10 (1941-1943). These measures are the two most often-used indicators of U.S. stocks’ performance. The Dow-Jones Averages are carried by The Wall Street Journal, while the S&P 500 Index is the indicator most often used by institutional investors. Level of Difficulty: Medium ...
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...Happel et al. (1995) in the article “Herd them together and scalp them” highlighted the presence of ticket scalpers at the sporting and fun events. Scalpers sold the tickets double to the amount to which they were originally sold out but what actually they do is that they tap a market of buyers whose time is in short supply but their money isn’t and the buyers also care less about the money to get those tickets. Tickets are bought from licensed sellers and are then sold for a price determined by the individual or company in possession of the tickets. Tickets sold through secondary sources may be sold for less or more than their face value depending on demand, which itself tends to vary as the event date approaches. In response to this act of scalpers, the City Council passed an Ordinance allowing the scalpers to sell the tickets within the specified limits and beyond that it would be considered illegal. The reason for this is that, with the scalpers gathered into a one-stop shopping forum, buyers could easily get information from all sellers. Secondly, local citizens were in favor of free market that they think was the best way to ensure that everybody got a chance to buy tickets and get good seats. We can infer from this article that ticket scalping is somewhat illegal with respective to the ticket selling company but if we see from the point of buyer’s perspective it is not such illegal because everybody who wants to get good seats for an event deserve to buy the tickets and...
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...TABLES OF CONTENT 1 INTRODUCTION 1.1 INRODUCTION OF ORGANISATIONAL BEHAVIOUR 1.2 INTRODUCTION OF COMPANY 2 SERVICE OFFERD BY ORGANISATION 3 TYPES OF RESEARCH 3.1 PRIMARY AND SECONDARY RESEARCH 3.2 DIFFERENCE BETWEEN PRIMARY AND SECONDARY RESEARCH 3.3 TYPES OF RESEARCH USED IN OUR PROJECT 4 QUESTIONARE ANAYLISES 5 FINDING AND CONCLUSION 6 REFRENCED 1 INTRODUCTION PROJECT of organizational behavior contains the research in organization i.e PVR world wide cenimas best quality screen this project deals with the behavior of the working management in the PVR and how maneger controls the working of the other class people related to food service till the demand and rates of the seats. Now let us know first what is basically O.B and company is all about. What kinds of research are there and what we used in are project. 1.1 INTRODUCTION ABOUT ORGANISATIONAL BEHAVIOUR DEFINITIONS “Organizational behavior is a field of study that investigates the impact that individuals, groups and organizational structure have on behavior within the organization, for the purpose of applying such knowledge towards improving an organizational effectiveness” The study of the way people interact within groups. Normally this study is applied in an attempt to create more efficient business organizations. The central idea of the study of organizational behavior is that a scientific approach can be applied to the management...
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