Products and Services BM&FBOVESPA is the main Brazilian institution of intermediation for capital market operations. As the only exchange for stocks, futures and commodities in operation in Brazil, BM&FBOVESPA develops, implements and provides systems for trading involving stocks, stock derivatives, fixed income securities, government securities, financial derivatives, currencies and agricultural commodities. BM&FBOVESPA is also very important in fostering the Brazilian capital market
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Choose any futures exchange and elaborate on its characteristics and give a detailed description of its activities. Introduction Futures belong to the class of securities known as derivatives since its value is derived from the value of some other security. A futures contract is similar to a forward contract. Noting the shortcomings of the forward market, particularly the need and the difficulty in finding a counter party, the futures market came into existence. Futures contract is an agreement
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overdraft, additional partners, share issue, leasing, hire purchase mortgage, trade credit and government grants. For a high-tech company, firstly, long-term sources of finance should be used. For example, owner’s investment should become the first fund of the company. Owner’s investment is money which comes from the owner’s own savings. It is the form of start up capital - used when the business is setting up, it also can be used for business expansion. Owner’s investment is a long-term source of
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count, long-term loyal shareholders Operation goals for MNE(incompatible): maximization of consolidated after-tax income; minimization of the firm’s effective global tax burden; correct positioning of the firm’s income, cash flows, and available funds as to country and currency
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1. Bonds that have an option exercisable by the issuer to retire them at a stated dollar amount prior to maturity are known as: A. Convertible bonds. B. Sinking fund bonds. *C. Callable bonds.* D. Serial bonds. E. Junk bonds. 2. A bond traded at 102½ means that: A. The bond pays 2.5% interest. *B. The bond traded at $1,025 per $1,000 bond.* C. The market rate of interest is 2.5%. D. The bonds were retired at $1,025 each. E. The market rate of interest is 2 ½ % above the contract rate
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8th International Conference on Islamic Economics and Finance Measurement of Financial Development: A Fresh Approach Noureen Adnan 1 Financial development can be defined as the policies, factors, and the institutions that lead to the efficient intermediation and effective financial markets. A strong financial system offers risk diversification and effective capital allocation. The greater the financial development, the higher would be the mobilization of savings and its allocation to high return
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instruments issued in a financial system • The flow of funds between savers / borrowers • Distinguish between various types of financial markets according to function • Appreciate the importance of globalisation • Understand the effects and consequences of a financial crisis on a financial system and economy 1-3 1 Functions of a Financial System • Money – Acts as medium of exchange – Solves the divisibility problem, i.e. where medium of exchange does not represent equal value for the p q parties
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programs, however majority of the sales are executed through investment bankers. An investment banker is serves as a middleman to channel the money from investors to firms and governments that need the funds. Investment bankers, when being the middleman, they are able to help bring together individuals with funds to invest and firms that need financing. They are able to save the company in question time and money by identifying risks associated with a project before the company moves forward. They have a
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1.1. Introduction Mutual Funds in India – History The concept of Mutual Funds in India emerged as success as early as 1990s, when Government allowed public sector banks and institutions to launch mutual funds schemes. Unit Trust of India was the first Mutual Fund in India set-up in the year 1963 Security and exchange Board of India (SEBI) act was passed in the year 1192. The objectives of SEBI are - to regulate security market and protect the interests of investor community. It is regulatory
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Chapter 6 Answers to End of Chapter Questions 1. Exchange Rate Systems. Compare and contrast the fixed, freely floating, and managed float exchange rate systems. What are some advantages and disadvantages of a freely floating exchange rate system versus a fixed exchange rate system? ANSWER: Under a fixed exchange rate system, the governments attempted to maintain exchange rates within 1% of the initially set value (slightly widening the bands in 1971). Under a freely floating system
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