Finance

STATEMENT OF OBJECTIVES As a 30 year old I realize that time is really moving fast and I have to plan not only for my future but also for my retirement plan. My life expectancy is 95 years and this is not bad given that the life expectancy is approximately 78 years (Julie, 2009). However that is not the maximum age I can attain since I have all it takes to make me live even more. Therefore I need money to spend after retiring. This will be made possible to current investments and savings. This means...

Securitization has remained one of the most important contrivances in the financial toolkit of banks. It allows banks to allocate their capital requirements more efficiently, access to funding sources that are cost effective, and better means of risk management. As Greenbuam and Thakor (1987, 1995) observe, securitization permits banks to deviate from the traditional lending operations, allowing them to explore more basic activities bringing them corporate advantages. Does the rationale for the...

I have had the privilege of working with Mr. Kaikai Zhang in China Citic Bank, Tianjin Binhai Branch. As the Recruiting Manager and Deputy General Manager of the said banking institution, I have interviewed hundreds of excellent college students from top universities in China who are applying for work. Being one of Chinas leading banks, China Citic has been a haven for students who undergo internship, with an aim to acquire valuable work experience and seek challenging positions in the banking sector....

HSBC is expected to have cut back on their dividend pay-out since their banking sector is one of the most heavily hit by the recent economic crisis. The kind of effect on them is a little different with Vodafone and Glaxo however. Vodafone is more or less not as badly hit by the crisis since they are in the telecoms industry as well as GlaxoSmithKline company which belongs to the pharmaceutical industry. It can be noted that HSBC has been very aggressive in the dividend that it doles out to its...

Introduction Portfolio theory and Capital asset pricing model are financial tools which helps the investors and analyst. It helps analyst and investors to decide the type of shares they would like to have in their portfolio and the expected return from that stock. Though it is based on historical data still it helps analyst and investor to decide the future action. This tool also helps the investor identify the risk he is taking on his investments. Since, every investor has a risk appetite so he...

Euro- area financial markets have seen an advancement both qualitatively and quantitatively since the introduction of the Euro and in particular the London financial market whose role remains as relevant if not more important than ever before. An integrated and competitive money market in the Euro zone has been as a result of the introduction of the Euro and its attendant policy framework. Influence The London financial market has been witness to the effects of enhanced competition since the advent...

Adverse selection and moral hazard problems are well known to cause financial crises. Adverse selection specifically hampers the running of financial markets as bad credit risks motivate loan borrowing. Moral hazard is a principal-agent problem whereby managers as the agents get less profit maximizing incentives compared to the stockholders who are the principals.  As such, borrowers indulge in economic activities that are less desirable as far as the lender is concerned. An increase in adverse...

Define the following terms and identify their role in finance a. Finance Allocation of resources and funds of the organization in order to maximize the wealth. Firm obtained funds both from external and internal sources at a lower possible cost via sale of stock, bonds, bank loans, etc. Allocation of resources is another aspect of finance as per the needs and the requirement of the business.     b. Efficient Market in an efficient market the securities are fairly priced and reflect all...

With unemployment levels at 10 - 12 and the number of graduates set to increase this year, the odds of me finding a job are only 5.  The odds of me finding a job that I actually like are at 2.  These are not very good odds for me considering my educational attainment and my background.  However, if I take up my degree in finance at this academic institution, the numbers are different.  The time that I spend pursuing my education coincides with the downtime in the economy. ...

1. What is personal finance Explain with example.Personal finance encompasses the application of finance principles and techniques to individuals rather than business organizations and non-profit making entities. Variations in the finance methods used exist between the two.  However, the salient principles of finance remain the same.  For example, in personal finance one can find budgeting techniques like cash budgets that are used in order to plan in advance cash disbursements in comparison...

OutlineExplanation of the Balance of paymentEvolution of the monetary approach to the balance of payments theoryKey assumptions of the monetary approach to the balance of paymentsCharacteristics of the monetary approach to the balance of paymentsImplications of the monetary approach to the balance of payments IntroductionBalance of payments is a breakdown of transactions made by a country with other countries duringspecific period of time. It is used as a mechanism to indicate the level of political...

Q. Do you feel the Helms 9500 liquid balance is adequate Explain.In the current downward trend in the economy the losing of job is not very unlikely. 5,000 is the Helms combined monthly income. In general, a family should have ample liquidity equivalent to the 4 to 5 months monthly income. Helm required less liquidity because of no family obligation. In case of any urgency or job lost, they should need a liquidity of at least 3 months time. If both lose their job at a time then they will be in a...

14-1. What are financial markets What function do they perform How would an economy be worse off without them Financial market is a place where buyer and seller easily interact with each other by trading different stocks, bonds and securities. The role of financial market is very pivotal in building the economy of any country and it is the barometer of the economy. The functions of financial markets are stated below It provides a hub where investors buy and sell their securities. Financial market...

Q.1    hat is the capital market How is the primary market different from the secondary market In your opinion, are these markets efficient Why or why not The term Capital Market refers to those markets where only broad and long term range of financial products and services like Mortgages, Treasury Notes and government Bonds and Corporate Bonds etc. are traded. This is the place where companies and government raise their funds by issuing long term bonds where any potential investor...

The acquisition of YouTube by Google came as a no surprise to many analysts in the technology industry. Google has developed a habit of buying companies that are based on a great idea and have a potential of becoming cash cows in the future once their development costs are recovered. Or in Googles case once the acquisition costs are covered these companies stand to benefit Google immensely. On a strategic level Google has been successful because they know that re-inventing the wheel is a far more...