monetary investments take place. 4. Secondary Market – This is a securities market in which investors buy securities from other investors instead of purchasing them from the issuing companies. Again , this is an investment tool which gives it importance to Financial management. 5. Risk – the potential to either gain or lose value. This term relates to Financial management because it is very important to understand risk against reward when considering a investment. 6. Security
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globalization. This new age has brought about shrinking of theof the globe and tighter global communication. The emergence of this new revolution has changed and elevated the roles that financial institutions play in global functions and their importance. It has also increased their significance in managing risks. This paper intends to first define the roles of financial institutions and describe how they are applied to global financial operations. Then it will elucidate the significance of these
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sector and its role of intermediation between savers and borrowers is the target of regulators in every country to enhance stability, soundness and economic growth. The banking sector is one component of the financial system and its importance stems from the importance of the financial system as a whole. 1.2. 1.2 Financial Systems The financial system is defined by Gurusamy (2008) as a system that aims at establishing and providing a regular, smooth, efficient and cost effective linkage between depositors
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PERSONAL INVESTMENT Personal investment is defined as an individual invest and manage their own financial instrument, such as, stocks, bonds, property and others. This personal investment is in aims of improve the liquidity and efficiency of the equity and capital of the individual. Basically, the individual investors have to develop their own investment plan and framework based on different characteristics of the individual investors. This is because the personal investment is very subjective,
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competitive advantage. He says: ‘As information technology’s power and ubiquity have grown, its strategic importance has diminished. The way you approach information technology investment and management will need to change dramatically.’ Scarcity gives the capacity to be the basis for a sustained competitive advantage. Because information technology is easily accessible now, the strategic importance of information technology has been reduced. The main focus of this article is that organizations should
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wealth through, concentration, or the creation of wealth. Capital is money or a financial asset invested for the purpose of making more money (whealth in the form of profit, rent, interest, royalties, capital may also be seen as a form of capital, investment in one’s personal abilities, such as through education, to improve their function and therefore increase their income potential in a market economy. Poverty is the inability of getting choices and opportunities of human dignity. It means lack of
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potential for losses in an investment and then takes the appropriate action given their investment objectives and risk tolerance. * Inadequate risk management can result in severe consequences for companies as well as individuals. * Simply put, risk management is a two-step process - determining what risks exist in an investment and then handling those risks in a way best-suited to your investment objectives. Description When an entity makes an investment decision, it exposes itself
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economic force that is quickly becoming the free trade hub of Asia. It has concluded free trade agreements with China, India, Japan, Korea, and Australia/New Zealand, has completed a Trade and Investment Framework Arrangement with the United States, and is in the process of pursuing several other trade and investment agreements. The ASEANChina FTA, which came into force in 2010, represents one of the largest free-trade zones in the world, with an estimated 2.0 billion consumers. ASEAN is also pursuing
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includes management of an enterprise's holdings, with the ultimate goal of maximizing the firm's liquidity and mitigating its operational, financial and reputational risk. Treasury Management includes a firm's collections, disbursements, concentration, investment and funding activities. In larger firms,
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Gap Analysis: Intersect Investments Rosa L. Butler University of Phoenix MBCC0107/MBA 520 Transformational Leadership July 01, 2008 Dr. Alvin H. Steward III Gap Analysis: Intersect Investments Introduction In late 2001, the financial services industry began to experience problems due to external forces which were out of control from company managers who could not control the social and political pressures the market was receiving from their customers and Wall Street. Leaders needed to
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