FINANCIAL MANAGEMENT The main objectives of financial management are:- 1. Profit maximization : The main objective of financial management is profit maximization. The finance manager tries to earn maximum profits for the company in the short-term and the long-term. He cannot guarantee profits in the long term because of business uncertainties. However‚ a company can earn maximum profits even in the long-term‚ if:- i. The Finance manager takes proper financial decisions. ii. He uses the finance
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value or wealth. Efficient Market – Market where all pertinent information is available to all participants at the same time‚ and where prices respond immediately to available information. Stock markets are considered the best examples of efficient markets Primary Market – Is a market in which new‚ as opposed to previously issued‚ securities are traded. Secondary Market – Financial market where previously issued securities (such bonds‚ notes‚ shares) and financial instruments (such as bills of
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Hidden Liquidity and Market Quality According to Putnins and Comerton-Forde (2012)‚ regulators and stock exchanges around the world have expressed concerns that growth in the share of equities volume executed in venues with little or no pre-trade transparency‚ so called ‘dark pools’‚ may harm market quality. Orders are hidden primarily in an attempt to reduce information leakage as well as price movements and order flows caused by substantial changes in a stock’s supply (market impact). Although
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Financial services have complex and evolving regulations. They trigger major programs of regulatory at national‚ regional and global level. These laws and regulations are essentially publicized by government regulators and international groups for a number of reason. Fundamentally‚ the rules are in place in order to protect customers. After the financial crisis in 2008/2009‚ action has been taken in making sure that the financial sector manages and contains these risks more effectively. If anyone
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including unit of account; exit price; valuation premise; highest and best use; principal market; market participant assumptions and the fair value hierarchy. Fair value is an important measurement on the basis of financial reporting. It provides information about what an entity might realize if it sold an asset or might pay to transfer a liability. In recent years‚ the use of fair value as a measurement basis for financial reporting has been expanded. Determining fair value often requires a variety of assumptions
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The ’financial system’ is a term used in finance to describe the system that allows money to go between savers and borrowers. The main elements of the system are generally said to be: Financial institutions are organizations that offer financial services. There are three main types of financial institution: Banks (including credit unions‚ building societies etc.)‚ insurance/pension companies‚ and investment funding companies/brokers. Financial markets are what they sound like - the system
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watershed year for the Zimbabwean financial sector. One would wonder why‚ but if one is conversant with the tragic events of that year‚ or was employed by one of the sunken banks‚ there would be no doubt in one’s mind that the year 2004 was arguably the most difficult year for Zimbabwe’s financial sector. As the Reserve Bank of Zimbabwe puts it‚ in its third quarter monetary policy statement of September 2004‚ some market analyst likened developments in the country’s financial sector to an “earthquake”.
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An Economic Analysis of Financial Structure FACTS ABOUT FINANCIAL STRUCTURE The financial system is complex and contains institutions like: Banks‚ insurance companies‚ mutual funds‚ stock and bond markets. The most important role of the financial markets is to channel funds from savers to people with productive investment opportunities. For the financial structure their are eight basic facts‚ where the four first emphasize the importance of financial intermediaries and the relative unimportance
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Evolution of Indian Financial System: A Critical Review EXECUTIVE SUMMARY The Economic Development of a country depends‚ inter alia‚ on the financial system. The larger the proportion of the financial assets (money and monetary assets) to real assets (physical goods and services)‚ the greater the scope for economic growth in the long run. For growth to take place‚ investment is necessary which flows from the financial system. Besides‚ as a scarce factor of production in the Less Development Countries
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Eshita Karan A015 Bsc Economics TY NMIMS Subject: Geopolitics Impact of Globalization on the financial market of developed and developing nations Globalization Globalization is a result of human innovation and technological process. It refers to the increasing integration of economies around the world‚ particularly through the movement of goods‚ services‚ and capital across borders. The movement can also be in terms of the movement of people (labour) and knowledge (technology) across
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