...ASSIGNMENT#1 Submitted By: Saadia 1. Accounting and Auditing Organization for Islamic financial institution (AAOIFI) The AAOIFI is a non-profit organization that focuses mainly on the area of accounting and auditing for Islamic financial institutions. While recognizing the need for standards, AAOIFI was established on February 1990 in Algeria and was registered on March 1991 in the kingdom of Bahrain. The organization is supported by 200 institution members from 45 countries across the global. The AAOIFI is one of prominent Islamic agency that attempts to install accounting and auditing standard for Islamic financial industry. The main object is to develop and disseminate accounting and auditing thought relevant to Islamic financial institutions and their applications. Its tasks include holding seminars, publishing periodicals, newsletters, commissioning research and prepare, promulgate, interpret and review, the accounting and auditing standards for Islamic financial institutions. Its notable efforts are to inform and encourage banking supervisors around the world to adopt its standard as the benchmark for Islamic financial institutions in their countries. These attempts to improve the transparency and comparability of the financial reporting of Islamic financial institutions are bearing fruit. The AAOIFI’s standard has been applied in various countries such as Bahrain and Sudan which require Islamic Banks in their countries to follow AAOIFI’s standards. In Qatar and Saudi...
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...with, has shown signs of further weakness. Financial market and sovereign stress in the euro area periphery have ratcheted up, close to end-2011 levels. Growth in a number of major emerging market economies has been lower than forecast. Partly because of a somewhat better-than-expected first quarter, the revised baseline projections in this WEO Update suggest that these developments will only result in a minor setback to the global outlook, with global growth at 3.5 percent in 2012 and 3.9 percent in 2013, marginally lower than in the April 2012 World Economic Outlook. These forecasts, however, are predicated on two important assumptions: that there will be sufficient policy action to allow financial conditions in the euro area periphery to ease gradually and that recent policy easing in emerging market economies will gain traction. Clearly, downside risks continue to loom large, importantly reflecting risks of delayed or insufficient policy action. In Europe, the measures announced at the European Union (EU) leaders’ summit in June are steps in the right direction. The very recent, renewed deterioration of sovereign debt markets underscores that timely implementation of these measures, together with further progress on banking and fiscal union, must be a priority. In the United States, avoiding the fiscal cliff, promptly raising the debt ceiling, and developing a medium-term fiscal plan are of the essence. In emerging market economies, policymakers should be ready...
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...1.0 Introduction Capital Market mainly refers to the Stock and Share market of the country. When banking system cannot totally meet up the need for funds to the market economy, capital market stands up to supplement it. Companies and the government can raise funds for long-term investments via the capital market. The capital market includes the stock market, the bond market, and the primary market. Securities trading on organized capital markets are monitored by the government; new issues are approved by authorities of financial supervision and monitored by participating banks. Thus, organized capital markets are able to guarantee sound investment opportunities. This paper reveals the various aspects of the Capital Market in Bangladesh. 1.1 Objectives Capital market, being an essential element of today’s economy, demands an intensive and special attention. The objective of this study is to look into every aspect of Bangladesh capital market and identify its various pros and cons along with some recommendations to overcome the existing problems. The specific objectives of this study are: _ To give an overall idea about the capital market-its structures, functions, importance, etc. _ To identify the current situations of our capital market of Bangladesh. _ To compare the relative conditions of Bangladesh capital market to other countries of the world. _ To sort out the problems associated with our capital market. _ To suggest some practicable solutions to these...
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...Risk Strategies (1) 212-438-3291 lisa_sanders@standardandpoors.com Although less than two weeks old, the third-quarter earnings season is shaping up to be a repeat of the second quarter, already suggesting that reported earnings will not break the seven-quarter streak of double-digit earnings growth. Although they were likely inspired by market concerns of a double-dip recession in the U.S. and threats of contagion stemming from the eurozone debt crisis, analysts may have underestimated the earnings power of U.S. companies. The Valuation and Risk Strategies (VRS) research team continues to expect slow GDP growth in 2011. As we said in the previous issue of the Lookout Report, if third-quarter earnings exceed analyst expectations--as they have for the past two years--we think the case for growth over recession will solidify. Heading into the third quarter, the Capital IQ mean estimate for S&P 500 companies declined sharply, with growth forecasts dropping from 17% at the beginning of the calendar quarter to 12.8% on Oct. 10, the day before Alcoa Inc.'s earnings unofficially launched the reporting The Lookout Report provides cross-market and cross-asset views based upon the unique combined capabilities of S&P Valuation and Risk Strategies, S&P Index Services, Capital IQ, and S&P Leveraged Commentary and Data. Published by S&P's Valuation and Risk Strategies research group, the Lookout Report is a compendium of current data and forward looking insights from leading...
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...A Decade of Reforms in Government Securities Market in India and the Road Ahead* RAKESH MOHAN I. INTRODUCTION It gives me great pleasure to deliver this keynote address at the Annual Conference of FIMMDA jointly organised by the Fixed Income Money Market Dealers Association of India (FIMMDA) and Primary Dealers Association of India (PDAI). Many of you would recall that the FIMMDA-PDAI conference held in Bangkok in 2002 was addressed by Governor, Dr. Y. V. Reddy when he was Deputy Governor. My address today is like a footnote to the comprehensive address given by Dr Reddy in Bangkok1 . He had covered a whole range of issues relevant for the development of the debt market including the need and motivation for development of domestic debt markets, the key issues relating to the development of the government securities market and also of the corporate bond market. He had emphasised the importance of the development of institutions and infrastructure such as the development of institutional investors, self-regulatory organisations, credit rating agencies, the relative roles of banks and bond markets, development of primary dealers, efficient clearing and settlement mechanisms and the like. More importantly, he had laid out the road map for the development of Indian debt markets in a very detailed manner for the following two years. I am here to really give you a progress report. First, it is very gratifying to see that most of reforms contemplated by him at that time...
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...Introduction: The capital market is the engine of growth for an economy, and performs a crucial role in acting as an intermediary between savers and companies seeking additional financing for business expansion. Stock market is part & parcel of capital market. Contribution of any stock exchange generally leads to economic growth by increasing the funds to finance industry and other enterprise. Stock Exchange is an autonomous body formed by shareholders/members. It can take various decisions independently. The objective of Stock Exchange is to provide a market place along with facilities for bringing together the buyers and sellers of securities, promote just and equitable principles of trade, protect the interest of the investors. 1.2 Importance of the study Trading system is one of the most important functions of stock market operation. This report tries to find out the trading system of Dhaka stock exchange. Stock market is an essential part of capital market. Trading has now become automated, led by the Dhaka Stock Exchange through the central depository. In the present automated trading environment, bids/offers, depth, and required broker particulars are all recorded and can be retrieved for future reference. 1.3 Objectives of the study: The prime objective of the study is to study and evaluate the trading system of DSE. In this regard the specific relevant objectives of study are as follows: • To examine the trading system of DSE. • To know growth, development, organization...
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...Islamic Banking and Finance To Dr Mohammad Omar Zubair, who is a source of inspiration for all those working in the field of Islamic economics and finance Islamic Banking and Finance New Perspectives on Profit-Sharing and Risk Edited by Munawar Iqbal Islamic Development Bank, Saudi Arabia David T. Llewellyn Loughborough University, UK Edward Elgar Cheltenham, UK • Northampton, MA, USA In association with: International Association of Islamic Economics Islamic Development Bank The Islamic Foundation © Dr Munawar Iqbal and Professor David T. Llewellyn 2002 (on behalf of the Steering Committee for the Fourth International Conference on Islamic Economics and Banking held at Loughborough University, UK, August 13–15, 2000) All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior permission of the publisher. Published by Edward Elgar Publishing Limited Glensanda House Montpellier Parade Cheltenham Glos GL50 1UA UK Edward Elgar Publishing, Inc. 136 West Street Suite 202 Northampton Massachusetts 01060 USA A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data Islamic Banking and Finance: New Perspectives on Profit-Sharing and Risk / edited by Munawar Iqbal, David T. Llewellyn p. cm. “Some of the papers were presented...
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...GLOBAL MARKET ASSESSMENT FOR HANDICRAFTS VOLUME I FINAL DRAFT JULY 2006 This publication was produced for review by the United States Agency for International Development. It was prepared by Ted Barber and Marina Krivoshlykova of Development Alternatives, Inc. GLOBAL MARKET ASSESSMENT FOR HANDICRAFTS VOLUME I FINAL DRAFT The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. FOREWORD This paper was written as part of the Accelerated Microenterprise Advancement Project (AMAP) Business Development Services Knowledge and Practice (BDS K&P) research initiative. The AMAP BDS initiative’s major objective is “integrating micro and small enterprises into productive value chains to create wealth in poor communities.” The research draws on experience and insights from: • Interviews with leading handicraft buyers in the United States, the European Union, and the Caribbean, including importers and retailers currently sourcing from Haiti, those who have done so in the past, and those who source handmade products from other destinations; • Interviews with market experts, such as product development consultants, designers, enterprise development consultants, and marketing specialists who work with handicraft producers in developing countries; • Discussions with market experts and USAID at a roundtable conducted in Washington...
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...Business Finance Summary Business Finance, Investors, Firms and Markets • Investments in assets are important because assets generate the cash flows that are needed to meet operating expenses and provide a return to owners of the business. • Financing decisions involved generating funds internally or form external sources to the business. Such as by issuing debt or equity securities. • Financing charges amount to non-operating cash flows • The required rate of return caters for the costs to both shareholders and debt holders for funds committed to the project. Therefore, using the required rate of return involves the financing charges being incorporated into the discount rate NOT the Net Cash Flows. • Fishers Separation Theorem states: Two time points: present and future No uncertainty, outcome of all decisions is known now No imperfections in the capital market All decision makers are rational Companies managers use resources according to shareholders o The theorem assumes that there is certainty and a frictionless capital market in which the interest rates for borrowers equals interest rate for lenders. o Shows a company can make a dividend/investment decision that is in the best interest of all shareholders. o Using ROR it is possible to show that the viability of project will depend on the ROR in respect to interest rate introduced through the capital market o If the interest rate is lower than both projects, then the combination of both projects...
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...Monitoring Financial Market The market where securities are sold and purchase is called financial market. Financial System The system in which the surplus and deficit which meets together for their mutual benefits. e.g. Bank loan. Surplus Unit The units which have excess money. Deficit Unit The units which need money. Financial Intermediaries The bank, person or party, financial institution which act as a middle man between surplus and deficit units are called financial intermediaries. Three types of financial intermediaries (1) Investment Bank (2) Broker (3) Dealer Investment Bank (a) Under Writing or Initial Public Offering (IPO) IPO: The first prize of the security (b) Best Efforts Offering Underwriting In under writing the bank took the security from the company and tries to sell them in the market. The unsold securities should be purchased by bank. Purchased these securities less than “IPO” price. Best Efforts Offering In this service the bank took the securities from the company and tries to sell in the market. The amount of sold securities and unsold securities return back to the company. Broker (Agent) It is a person which act or perform on the behalf of the owner. Dealer It is a person which work independently Types of Financial Market There are five major types 1 Primary Market 2 Secondary Markets 3 Money Market 4 Capital Market 5 Over the Counter Market (1) Primary Market The market where the new...
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...Professional Corporation (PC): Has most of the benefits of incorporation but the participants are not relieved of professional (malpractice) liability; known in some states as professional associations (PA). c. Stockholder wealth maximization: The basic principle where managers and decision makers are working on the behalf of the stockholders to enhance the shareholder value. Management’s primary objective should be stockholder wealth maximization. d. Money market: A financial market for debt securities with maturities of less than 1 year (short-term). The New York money market is the world’s largest. Capital market: Capital markets are the financial markets for long-term debt and corporate stocks. The New York Stock Exchange is an example of a capital market. Primary market: Markets in which newly issued securities are sold for the first time. Secondary market: Markets in which securities are resold after initial issue in the primary market. The New York Stock Exchange is an example. e. Private markets: Markets in which transactions are worked out directly between two parties and structured in any manner that...
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...Critique of the CRP concept 7 3.1 The theoretical foundation of Damodaran’s equations – built on sand 7 3.2 Damodoran’s empirical basis – a hotchpotch of ad hoc ideas . . . . . 12 4 Conclusion 19 ∗ Freie Universität Berlin, Germany, Chair of Finance and Banking, E-Mail LK@wacc.de. † Universität Paderborn, Germany, Chair of Finance and Investment, E-Mail AL@wacc.de. ‡ Universität Graz, Austria, Chair of Accounting and Auditing, E-Mail Gerwald.Mandl@uni-graz.at. 1 Electronic copy available at: http://ssrn.com/abstract=1651466 1 Introduction For several years, when setting discount rates Damodaran has advocated more consideration of country risk premiums (CRP ) when it comes to assessing companies with activities in emerging markets. We have to acknowledge that his approach is enjoying growing support among investment banks and auditing firms. At the same time, it is to be noted that Damodaran’s concept has failed to resonate sufficiently with the academic community. This is reason enough to perform a systematic analysis and critical discussion of his country risk premium concept. Damodaran’s initial considerations concerning a country risk premium can be found in Damodaran (1999a) and Damodaran (2003), with further essentially unchanged mentions in his more recent publications. In our contribution we will concentrate on the two aforementioned sources. 2 CRP concept In the following, we intend to give a neutral, that is, non-judgmental description of Damodaran’s country...
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...INTRODUCTION No business functions without finance. For there to be business concern therefore, there must be money. Development has however, changed the business operations in the capital globalize markets. People invest in business to make returns. It is therefore imperative for an individual to invest as well as institutional investors. Prior to development in capital markets, individual investors used to make their own investment decisions. But all these are changed now as individual investors have been replaced by institutional investors. This is also known as shareholding. Institutional investors play a very enviable role in corporate governance since the primary responsibility lies in side the board room, with the top management not with people and system imposed from outside. Looking at Board of Directors and investors, investors are seen as “sources of finance” or “partners in the enterprise”. This means that shareholders are seen as faceless, financial resource whose trust may be limited and need for checks and balances real? Or are they part of the business? Companies do take advice and guidance from their institutional shareholder in domestic and foreign business growth decisions (Stuffman 2008). This takes us to Hermes Fund Management, an institutional investment Corporation, which plays a strategic role in the activities of Total and Premier Oil. Total and Premier Oil has sought assistance from Hermes in managing business concern in Burma. This case study...
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...filing Maximizing value * Limited liability- the lower the risk the higher the value, all else equal * Growth opportunities: corporations can raise capital easier to take advantage of these opportunities. * Liquidity: an asset value also depends on how easy it is to sell it. Management’s primary goal Our focus: profit, publicity held companies Management’s goal: maximize shareholder wealth, which translates into maximizing the stock price. Maximizing shareholder value: A company’s shareholder wealth is equal to the number of shrares outstanding times market value per share. * We need to know what factors affect the stock price. * The value of a share of stock is the present value of the cash flows an “average investor” expects to receive in the future id he or she bought the stock. * Long-term view important. Market price VS intrinsic value Stock’s market price: actual market price of the share of stock. Value based on perceived returns and risk. (could be wrong) Intrinsic value: what a fully informed analyst would estimate as the “true” value of a stock...
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...is Ralph Nelson Elliott's discovery that social, or crowd, behavior trends and reverses in recognizable patterns. Using stock market data as his main research tool, Elliott discovered that the ever-changing path of stock market prices reveals a structural design that in turn reflects a basic harmony found in nature. From this discovery, he developed a rational system of market analysis. Elliott isolated thirteen patterns of movement, or "waves," that recur in market price data and are repetitive in form, but are not necessarily repetitive in time or amplitude. He named, defined and illustrated the patterns. He then described how these structures link together to form larger versions of those same patterns, how they in turn link to form identical patterns of the next larger size, and so on. In a nutshell, then, the Wave Principle is a catalog of price patterns and an explanation of where these forms are likely to occur in the overall path of market development. Elliott's descriptions constitute a set of empirically derived rules and guidelines for interpreting market action. Elliott claimed predictive value for The Wave Principle, which now bears the name, "The Elliott Wave Principle." Although it is the best forecasting tool in existence, the Wave Principle is not primarily a forecasting tool; it is a detailed description of how markets behave. Nevertheless, that description...
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