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5. From the financial statements of six top IT firms and Six top firms in FMCG sector Find out the level of debt in comparison with the market values of equities of these firms. You would rather find?
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The Role of the Financial Market in Economics ?
The financial market is an environment where people can buy and sell stocks, bonds, commodities, or other fungible items. These items can be sold at low transaction costs also. There are general markets and specialized markets. In a specialized market, there is only one commodity that exist. The general idea of a market is placing buyers and sellers in one place. This arrangement allows these people to find each other more easily; thus, the Financial market is a sort of marketplace for these individuals. A market economy is when the economy is dependent upon the interactions between the buyers and sellers. These individuals have to allocate resources within the financial market. In contrast, a gift economy works totally different. The financial market serves many purposes within the economy. First, the financial market is a meeting place for the buyer and seller. Next, money can be raised for different purposes. The derivatives markets are known for transferring risks. The international market is another type of financial market that is involved in international trade. The borrower will issue a receipt to the lender. This receipt is a promise to pay the lender back with interest. These receipts are also known as securities. The securities can freely be bought and sold in a financial market. The lender will expect that the borrower will pay interest on the money. The interest is compensation to the lender for the use of the money for a certain time period. The whole idea of economics is the notion that buyers and sellers will trade for goods and services. The term market can also refer to organizations that facilitate trade in financial securities. More commonly, these organizations are known as the stock exchange or the commodity exchange. The location can be physical or electronic. NYSE is a physical location of the financial market. The NASDAQ is the electronic location of the financial market. The majority of trading of stocks takes place on the exchange. The corporate merger takes place outside of the exchange in the financial market. Also, any two people can decide to sell or trade stocks without the exchange. The financial market is so diverse, and this market can be divided up into many categories.
Why are policy makers more concerned about the financial market than other markets such as the automobile or computer markets?
A working financial market is essential for all other sectors of the economy to function.
What are the characteristics of foreign exchange market?
The foreign exchange market, also known as the Forex or FX market is the largest and the most liquid financial market in the world. The Forex market average daily turnover is more than 4 trillion US dollars. The Forex market is also the only financial market that operates 24/5. Forex traders can earn even when the market falls.
What does financial liberalization mean?
Financial Liberalization refers to deregulation of domestic financial market and liberalization of the capital account.
What is bhavcopy of bse and nse?
Bhavcopy contains following informationOpen priceClosehighlowprevious closevolumeof all stocks traded in NSE on daily basis.You can get copy of bhavcopy from - nseindia.com >Home > Equities > Market Information > Market Today
Do financial statements show the market value of an asset?
In general, financial statements show the book value of an asset, not the market value. The few instances where the financial statements will show market valuations are as follows: * When derivatives are carried for hedge purposes, they are periodically marked-to-market * When an investment appears to materially have lost value (when comparing to similar instruments in the market or, for illiquid markets, when operating cash flows from an investment go down markedly), conservatism requires the asset value to be moved to the "market" or lower price
What is the difference between financial objectives and strategic objectives?
Any objective that is market based is strategic objective. Any objective that can be derived from financial statements is financial objective.
Where on the balance sheet would you look to determine the market value of an asset?
Company financial statements normally don't show the market value of assets but in "Notes to financial statement" section company may provide the market value of assets.
Why there are so many different types of financial markets?
A financial market is a broad term describing any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives. They include Capital Markets (stock, bond), Money Market, Spot market, Derivatives Markets, Forex and the Interbank Market, OTC market,.... You can search on alpari.com/en/investor. With different types of financial markets, investors can diversify their investing to minimize risks as hedging tools.
what is ratio analysis?
it refers to the assessment of financial statements of a company to make decisions regarding performance and financial position. it covers various areas of a company, like profitability, liquidity, solvency, and market value.
Can people influence the stock market?
People can influence the stock market thru Investor confidence, company financial health and statements, political factors, and the current state of the economy all affect the stock market
What was the first institutional incentive identified by the Treadway Commission?
Institutional incentives include falsely improving financial appearances in financial statements for the purpose of maintaining market stock prices or to meet investor expectations.
Classification of financial market?
classification opf financial market
What is informal financial market?
Any private financial dealings are an example of informal financial market.
What is Book value vs fair value?
Book value is the value of asset shown in financial statements while fair value is the value at which asset can be sold in market
What is spot market?
The spot market is a market place where financial instruments, such as commodities, currencies, and securities, are traded for immediate delivery. Delivery is the exchange of cash for the financial instrument. It may also refer as a physical market of commodities and cash market of equities. The current price of a financial instrument is called the spot price. It is the price at which an instrument can be sold or bought immediately. Buyers and sellers create the spot price by posting their buy and sell orders. In liquid markets, the spot price may change by the second, as orders get filled and new ones enter the marketplace.
Which is best equity market or commodity market?
If you're an investor, the equities market is best. It's way too easy to lose a lot of money investing in the commodities market. If you're a company that uses a commodity, then the commodities market is best.
