1. Tutorial #1 2. Describe the difference between a financial asset and a tangible asset. A financial asset is an intangible asset whose value is derived from a contractual claim, such as bank deposits, bonds, and stocks. Financial assets are usually more liquid than other tangible assets, such as commodities or real estate, and may be traded on financial markets. In contrast, a tangible asset is an asset that has a physical form. Tangible assets include both fixed assets, such as machinery
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Preferences towards various investment avenues in Capital Market with special reference to Derivatives. by Dr. K. RAVICHANDRAN, READER, Bharathidasan Institute of Management, (School of Excellence of Bharathidasan University), Tiruchirapalli. Introduction: In India, generally all capital market investment avenues are perceived to be risky by the investors. But the younger generation investors are willing to invest in capital market instruments and that too very highly in Derivatives segment
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mainly due to the increase in purchase of and advances to associated companies, additions to managed funds and other investments, and purchase of fixed assets. This was in line with the firm’s overall strategy of expanding its core businesses and their market shares in Asia. However, the negative cash flow may be a sign that current financing policy is not sufficient for future growth. As such, HWL now wanted to long-term financing with lower interest rates. In summary, Hutchison Whampoa’s financing strategies
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Description In the midst of the financial crisis, Barclays (the world's 4th largest bank by assets) is forced by UK regulators to raise more capital. Should it take up the UK government's offer to invest, or take funding from investors from the Middle East? Students may price the two deals to determine which is more expensive, and must decide whether avoiding the constraints of government ownership is worth the extra cost. Learning objective: The class begins with a discussion of why, if the bank
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Brazil’s Government Bond Market: A liquidity mechanism or crowding-out effect? It is the country that leads the infamous BRICs, coined by Jim O’Neill, Brazil. The 5th largest country in the world now also boasts an almost corresponding, 6th largest economy in the world, recently overtaking the once economic powerhouse, the UK. As far as Latin America is concerned, Brazil is the flesh and blood proof that success stories can come out of a perpetually hopeless case that is Latin America. As recently
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The Post-Earnings Announcement Drift (PEAD) was discovered by Ball and Brown in 1968 and it is still one of the most robust discoveries in the financial markets. The phenomenon was discovered when testing for market efficiency. Ball and Brown (1968) were estimating how fast a financial market incorporates new earnings information into the stock prices. They found an upward drift much longer than expected in stock prices after a ”good news” earnings announcement and a similar downward drift for a
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Indian Financial Sector Reforms: A Corporate Perspective Jayanth R. Varma Reproduced with the permission of Vikalpa, the journal of the Indian Institute of Management, Ahmedabad, in which the paper was first published (January-March 1998, 23(1), 27-38). Ó Vikalpa (http://www.iimahd.ernet.in/vikalpa). All rights reserved Until the early nineties, corporate financial management in India was a relatively drab and placid activity. There were not many important financial decisions to be made for
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Financial Crisis Introduction In recent decades, financial crises have stopped the momentum of economic development of many countries around the world. In some cases, they have destroyed almost completely different financial systems. The term financial crisis is applied broadly to a variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions
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SPEECH Indian Derivatives Market - A Regulatory and Contextual Perspective Shyamala Gopinath Indian Derivatives Market - A Regulatory and Contextual Perspective* Shyamala Gopinath Let me first thank Euromoney for inviting me for this seminar on Indian derivatives market. The esoteric world of derivatives has come into sharp focus in recent times precisely on account of their complexity and recent events have triggered a debate on their impact on the financial system stability. My discussion
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structural adjustment programme (SAP) in 1986 and de-regulation of the financial sector, new banks proliferated mainly driven by attractive arbitrage opportunities in the foreign exchange market (Heiko 2007), but prior to the de-regulation period, financial intermediation never took off and even declined in the1980’s and 1990’s (Capirio and Kligbiel). The sector was highly oligopolistic with remarkable features of market concentration and leadership. Lemo noted that there are ten banks that
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