NBFI The NBFI sector will have to improve their capital market investment, decision making, and risk management capabilities and also they should seek out new clients. Selim R.F. Hussain CEO & Managing Director, IDLC 2012 has been a challenging year for the NBFI sector for a number of reasons. 2012 witnessed severe liquidity challenges for the first three quarters of the year with interest rates sky rocketing while the liquidity in the interbank shrank significantly. Although the liquidity conditions
Words: 1943 - Pages: 8
holdings, 10 of which accounted for 50% of the fund’s assets. No manager had matched Miller’s consistent index beating record. Miller’s results were in contradiction to the conventional theory which suggests that it is extremely difficult to beat the market on a sustained basis as it is characterized by high competition, easy entry and informational efficiency. Problem Statement: The Lag Mason Value Trust has been able to outperform the S&P 500 index for 15 consecutive years till 2005. Will the
Words: 1545 - Pages: 7
Finance – Finance is basically the management of money and revenues. It deals with the value of money as well as wealth. Efficient Market Theory – A theory is an idea. The efficient market theory is the idea that the market will respond efficiently as things change and new information becomes available. The role it plays in finance is that investors and others will make decisions quickly based on the most recent information. This can be beneficial as it is important to stay on top of things; however
Words: 334 - Pages: 2
The Efficient Market versus The Inefficient Market Many professionals have spent an endless time researching about the efficiency of the market. 5 years ago, we experienced one of the worst financial disasters in history and a lot of questions have been asked about the degree of efficiency of the market. Being in a recession has never been more dangerous because of globalization; the whole world can be affected, just like what happened in the crash of 2008. It started in the United States and
Words: 1559 - Pages: 7
can only imagine. Like the insurance companies who collect interest on premiums paid while waiting months to pay health providers for services delivered today they profit on “the float”. Their size allows them to create runs in markets, shoring commodities floods the market and creates downward pressure through supply and demand, and then when the price drops they cover the short. Selling something they do not own and then filling the hole when the price is less. The question is not how do they
Words: 640 - Pages: 3
historical performance, market return, thus we have no benchmark to conclude if there is market efficiency. b) Support. Market reaction to new-hired CEO from another firm is used as accurate measure of events' impact on firm value. The 2.5% increase in stock price reflects market perception of underperformance of the current CEO/expected better performance of new CEO. c) Not clear. Small firms have outperformed the market over 30 years, it can be the case that the market is efficient but the asset
Words: 1272 - Pages: 6
Efficient Capital Markets Topic 4 Davenport University FINC 620 - Financial Management June 3, 2016 Efficient capital markets Market Efficiency An efficient capital market is: “A market where information regarding the value of securities are incorporated into its prices accurately and in real time. Since the value of securities fluctuates depending on the present value of future cash flows, an efficient capital market enables these fluctuations to be
Words: 1085 - Pages: 5
4 THE GLOBAL FINANCIAL CRISIS ................................................................5 Credit and Debt Markets....................................................................................................5 Equity Markets ...................................................................................................................6 THE GFC AND EQUITY CAPITAL RAISING..................................................6 THE NATURE OF THE AUSTRALIAN EQUITY MARKET.............
Words: 10020 - Pages: 41
CHAPTER 4 Securities Markets REVIEW QUESTIONS 4-1. The third market involves OTC transactions in securities listed on the organized exchanges. The fourth market involves direct transactions among large institutions, bypassing intermediaries such as brokers and dealers. Level of Difficulty: Medium Topic: The Third and Fourth Markets 4-2. The primary factors accounting for the rapid changes in securities markets are: • Pressure by institutional
Words: 2541 - Pages: 11
___________________________________________________________________________ 1. A purchase of a new issue of stock takes place A. in the secondary market. B. in the primary market. C. usually with the assistance of an investment banker or dealer. D. a and c. E. b and c. 2. The trading of stock that was previously issued takes place A. in the secondary market. B. in the primary market. C. usually with the assistance of an investment banker. D. a and c. E. b and c. 3. Which of the following statement(s)
Words: 9907 - Pages: 40
