Financial markets

Friedrich Hayek, a distinguished political philosopher, believes that free market capitalism is the most viable option as an economic system for a free society. He believes this due to the fact that it is possible for the state to be a coercive agent, which inhibits the most basic of human rights: freedom. Because of this, he does not think the state should interfere in economic processes. The sentiment that free market capitalism is the most conducive for freedom, is flawed. It can be argued…

In the global economy, the growth and development of stock market of any country depends on the financial system and economic fundamentals. The well established financial system provides the necessary financial inputs for the production and services. The strong economic policies and economic indicators are support the standard of living of people and influence the growth of an economy. Before, liberalization, privatization and globalization, most of the economy as consider as closed economy, the…

to the onset of the stock market crisis, the Shanghai Stock Exchange Composite Index reached 3234.68 points on the final trading day for 2014 following a steady increase in share market prices. This reflected a 52.87% annual increase in the previous year, (Liu, 2015). Simultaneously, China 's economy began to deteriorate. The share market reached its peak on June 12th 2015 trading at a record 5166.35 points, a 59.75% annual increase the previous year, (Liu, 2015). Financial capital was used to…

the 2008 global financial crisis, we analyze the Granger causality test results in different subperiods separately first. Before the test, we use final prediction error (FPE) criterion to select lag orders. During the pre-crisis period from 2005 to 2007, an optimal lag length of one was selected for all the seven markets. The Granger causality test results for pre-crisis period are shown in table 4. Table 4 Granger causality test results for pre-crisis period from 2005 to 2007 Market Ho F-value…

female. The level of education and financial literacy also contribute to the heterogeneity in household financial decisions. More educated investors are generally more capable of gathering and understanding stock market information, and have therefore a higher probability to own risky assets (Vissing-Jørgensen, 2002; Christiansen et al., 2008). Though observable characteristics can explain a large fraction of the cross-sectional heterogeneity in household financial behavior, the effect of…

be difficult given the number of complex details and caveats that make up the markets. For this reason, some of the most important concepts often go overlooked or misunderstood, one of those being Libor (London inter-bank offered rate). The rate is widely considered the primary benchmark in finance upon which trillions of dollars of contracts are exchanged. Libor is a money market interest rate which banks and financial institutions use as a yardstick for borrowing from one another. It is…

The said “discount” price will likely to be diminished over time, especially if Hwang Capital is successful to explore new potential business with the RM 250 million fund. If Hwang Capital finally decides to exit the Malaysian market or not to remain its listing status, it is likely to carry out capital repayment and to go through liquidation exercise for the remaining assets and to return any cash recoverable to the shareholders. Shareholders can still obtain a high return by…

some, stock market investments make the primary component of an individual retirement portfolio. Enterprises and enterprises become noticeable when they access the stock market with the intention of raising capital for strategic and operational purposes. Stock markets trends have an influence on consumer and corporate willingness to invest thereby controlling United States economy (Arbogast, 2013). By facilitating, trades between companies, consumers and other companies. The stock market…

the research The financial market plays an integral role in the world economy. This market includes foreign exchange markets, stock markets and capital markets. Of these, the stock market, which comprises various stock exchanges, plays a leading role in the function of the financial market (Dziawgo, 2012). Since there is a great number of issues such as financial crisis and recent global economic downturn, Vietnam still has heaps…

What are the major consequences of Wall Street Crash 1929? The last century witnessed a tragedy in global stock markets, initiated by the notorious Wall Street Crash 1929. This caused a big slump in the market values of shares across the world. This triggered off the Great Depression, and many other consequences. According to Frederick Lewis Allen’s Only Yesterday (1931), “The rich man's chauffeur drove with his ears laid back to catch the news of an impending move in Bethlehem Steel; he held…