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Essay / Financial Markets: The Collapse of a Financial Market stocks, bonds, commodities, currencies and derivatives. They are generally characterized by the existence of straightforward pricing based on market forces, basic rules and regulations restricting participation based on certain defined criteria such as the amount of money held, geographic location and even the profession of the participant. These financial markets are located in almost every country. of the world. The distinguishing factors are the size and complexity of the financial markets located in different countries. The NYSE, for example, could process trillions of dollars per day, while the RSE, in its development phase, could move very low volume transaction values in one day: $70,000 (CSR report of May 12 2014). Information transparency is essential to foster investor confidence in any financial market. This helps build an efficient financial market where security prices are determined by market forces. It also helps curb market manipulation, insider trading and fraudulent trading. Many arguments have been put forward to justify the development of financial markets. Good financial markets provide alternative sources of domestic debt financing. This is because an over-reliance on bank loans for funding exposes the financial system to risks in the event of a banking system collapse. This problem can be solved by having an efficient domestic capital market (bond market), which would provide an alternative if banks cannot offer credit lines. Developed financial markets also help reduce the cost of capital. This is true as individuals would incur higher financing costs through bank loans, as middle of paper......rt also forecasts this figure to rise to just over 30% by 2030, then almost 40%. by 2050. This increase can be attributed to the increase in local and foreign investments to finance large-scale infrastructure projects and the narrowing of the gap between emerging and developed countries (IOSCO-IOSCO, 2011 ). Global stock markets also rose sharply after the crisis. of the storm of the financial crisis. While stock markets in developed countries are still in the recovery phase, the speed of development of stock markets in emerging markets has been unprecedented, leading to changes in the structures of these stock exchanges as well as capital flows from developed countries, with investors no longer limited by national borders. (IMF WP 08/32)STOCK MARKETSBOND MARKETSSTOCK AND BOND MARKETS IN KENYARELATION BETWEEN BONDS AND THE STOCK RESEARCH PROBLEMLet's talk about the average maturity profile of all domestic bonds, which now stands at 5 years in some months
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