scholarly journals Financial instruments of investment

2020 ◽  
pp. 35-39
Author(s):  
Tetiana ZUBKO ◽  
Andrii DIDKIVSKYI ◽  
Artem TERESHCHENKO
Keyword(s):  
Stock Market ◽  
Average Rate ◽  
Capital Gains ◽  
Financial Instruments ◽  
Government Bonds ◽  
Financial Investment ◽  
Advantages And Disadvantages ◽  
The Us

Introduction. One of the conditions of successful functioning, scaling and any enterprise developing is the availability of financial resources in an amount that responds to current and strategic needs. Their rational use, multiplication, and determination of the directions of investing can significantly affect the efficiency of the present activity and the future of the business as a whole. For an enterprise is important to search for ways to raise capital, ensure efficient use and invest in the most economically based and profitable projects in terms of payback position during the invest activities. The purpose of the paper is to analyze ways and compare methods of investing through financial instruments to find the best one. Results. The article systematizes the basic ways and types of investing through financial instruments. The practical aspects of return on invested financial capital and the conditions of its formation are investigated. The return on the invested capital of different ways of investing is compared and the ways of its increase are grounded. Deposits rates, inflation rate, and level of bonds' returns of Ukraine’s domestic government loans over the last twelve years are analyzed. The main US brokerage agencies are compared, and the best one is determined. The US stock market is analyzed. The advantages and disadvantages of financial investment instruments are identified. Conclusion. On the whole, having analyzed the deposit market, the Ukrainian government bonds, and the US stock market, we can conclude on the instruments of investing. The most popular option among Ukrainians is to use deposits. This financial instrument lets us save costs. The timing of the investment may vary depending on the needs. In comparison with deposits, T-bills are a more complex tool that requires additional knowledge and skills. This type of investing is used by investors to obtain short-term benefits and speculation. From 2018 to 2019, the annual average rate of return is 17%. Investment term up to 5 years. The last way to make a profit is to buy shares in the US stock market. With a long-term investment, this method of investing allows us to get 8% per annum with inflation-adjusted. Compared to deposits and T-bills, one can expect significant capital gains. The main disadvantages of this method are the human factor, so the large volume of funds should be accredited by institutional investors. In this article, investing in the US stock market is the best way to earn a return on investment.

scholarly journals International portfolio diversification: United States and south Asian equity markets

2014 ◽  
Vol 61 (2) ◽  
pp. 241-252 ◽  
Author(s):  
Rizwan Mushtaq ◽  
Zulfiqar Shah
Keyword(s):  
Stock Market ◽  
South Asian ◽  
Equity Markets ◽  
Equity Market ◽  
Causality Test ◽  
Market Index ◽  
International Portfolio Diversification ◽  
The Us ◽  
Short And Long Term

This paper explores the dynamic liaison between US and three developing South Asian equity markets in short and long term. To gauge the long-term relationship, we applied Johansen co-integration procedure as all the representative indices are found to be non-stationary at level. The findings illustrate that the US equity market index exhibits a reasonably different movement over time in contrast to the three developing equity markets under consideration. However, the Granger-causality test divulge that the direction of causality scamper from US equity market to the three South Asian markets. It further indicates that within the three developing equity markets the direction of causality emanates from Bombay stock market to Karachi and Colombo. Overall, the results of the study suggest that the American investors can get higher returns through international diversification into developing equity markets, while the US stock market would also be a gainful upshot for South Asian investors.

scholarly journals Cointegration of Stock Market and Exchange Rate in Indonesia

2019 ◽  
Vol 2 (2) ◽  
pp. 125 ◽  
Author(s):  
Pribawa E Pantas ◽  
Muhamad Nafik Hadi Ryandono ◽  
Misbahul Munir ◽  
Rofiul Wahyudi
Keyword(s):  
Exchange Rate ◽  
Stock Market ◽  
Capital Market ◽  
Global Financial Crisis ◽  
The Us ◽  
Us Dollar ◽  
The Exchange Rate ◽  
Johansen Cointegration Test ◽  
The Global Financial Crisis

This study aims to determine the long-term relationship between stock market and exchange rate in Indonesia. The research method used is Johansen cointegration test. The results of this study found no cointegration between the variables tested. Thus the exchange rate, JII, and IHSG have no relationship in the long term. The fluctuation of the rupiah exchange rate in recent years did not generally affect the performance of stock indices especially after the global financial crisis of 2008. This shows the capital market in Indonesia has a good performance so that it is not so sensitive to the sentiment of the decline in the rupiah against the US dollar. This finding is in line with the findings of Syahrer (2010) which states the exchange rate has no effect on the stock market.

scholarly journals Financial guarantee for mine closure

2003 ◽  
Vol 56 (3) ◽  
pp. 181-186 ◽  
Author(s):  
Hernani Mota de Lima ◽  
Flávio Luiz da Costa ◽  
Robson Peixoto ◽  
Valdecy Caldeira
Keyword(s):  
Regulatory Agencies ◽  
Financial Instruments ◽  
Mine Closure ◽  
Advantages And Disadvantages ◽  
Mining Companies

This paper deals with the determination of the amount of a closure guarantee, the most common financial instruments available to the mining companies to satisfy the regulatory agencies' current and anticipated requirements, characteristics, advantages and disadvantages pertaining to these instruments as well as the problems faced by mining companies and governments to implement such instruments.

scholarly journals An empirical study of the performance of South African conglomerates

1989 ◽  
Vol 20 (1) ◽  
pp. 1-6
Author(s):  
J. F. Affleck-Graves ◽  
G. H. Burt ◽  
J. M. Cleasby
Keyword(s):  
Stock Market ◽  
Empirical Study ◽  
South African ◽  
Market Returns ◽  
Return On Assets ◽  
Return On Equity ◽  
Empirical Question ◽  
Advantages And Disadvantages ◽  
Stock Market Performance

Existant financial theory is unable to explain whether on aggregate conglomeration is beneficial to either individual shareholders or to the economy. Both advantages and disadvantages can be listed for the conglomeration process and it is thus an empirical question as to whether or not shareholders really do benefit from conglomeration. In this paper the long-term profitability of conglomerates is examined in an attempt to determine whether or not such shareholders earn superior returns on aggregate. This is done by contrasting the stock market performance of a sample of South African (SA) conglomerates over a six-year period with the performance of the overall market. In addition, their performance is contrasted with that of a random portfolio of non-conglomerate companies. Finally, a pseudo-conglomerate portfolio was constructed for each conglomerate in such a way that each portfolio had the same asset structure as its matched conglomerate. The performance of the conglomerates was then contrasted with that of the pseudo-conglomerate portfolio using market returns, return on assets, and return on equity. The results indicate that on aggregate, the conglomerates significantly underperform non-conglomerates. This is consistent with the view that conglomeration is in the interest of management rather than that of the shareholders.

scholarly journals FINANCIAL ENGINEERING AS A TOOL FOR THE DEVELOPMENT OF CORPORATE BOND MARKET IN EASTERN EUROPE ON THE EXAMPLE OF UKRAINE

2018 ◽  
Vol 4 (4) ◽  
pp. 120-125
Author(s):  
Maria Iorgachova ◽  
Olena Kovalova ◽  
Ivan Plets
Keyword(s):  
Stock Market ◽  
Financial Engineering ◽  
Bond Market ◽  
The State ◽  
Corporate Bond ◽  
Financial Resources ◽  
General Level ◽  
Financial Instruments ◽  
Corporate Bond Market

In the context of the gap between the financial and real sectors of the Ukrainian economy, there is a problem of the absence of financial instruments able to solve the issue of financing the development of the national economic system on a long-term basis. At the current stage of the stock market development, financial engineering has a significant potential for the effective application since it can become an instrument that meets the current needs of the market. The purpose of this article is to study the current dynamics of development and features of the corporate bond market in Ukraine, as well as to develop the parameters of the new profit-bonds with the help of financial engineering, which takes into account investors’ inquiries in the formation of an investment portfolio and supposed to be a profitable form of attracting financial resources for issuers. Methodology. Materials of periodicals, analytical market reviews, resources of the Internet are the informational and methodological basis of the investigation. The research is based on general scientific and special methods, such as: comparison, systematic approach factor analysis, economic and mathematical methods. A comparative analysis of the parameters of financial instruments has been carried out that allowed determining the investors’ inquiries, investment trends and features of the choice of financial instruments by investors and accordingly to offer competitive debt securities according to the parameters of payment, maturity, security, repayment order, issue of currency. The results of the study indicate that there is the necessity of reformation of the stock market in terms of expanding the range of financial instruments based on financial engineering. The introduction of profit-bonds will allow offering participants of the Ukrainian market competitive conditions for the issue of securities, which are based on the modelled parameters of bonds. A schematic algorithm for the implementation of profit bonds is developed; it joins a complex of interrelated stages of implementation, which are sensitive to internal and external factors of influence. Practical implications. Directions for improving financial instruments on the basis of financial engineering can be applied by the participants of the stock market that will increase the general level of economic activity in the national economy and permit to accumulate financial resources on the profitable terms. Value/originality. The article reveals the development of the domestic market for corporate bonds as an important segment of the stock market through the application of financial engineering and the use of new financial products created to address the issue of attracting the necessary financial resources to the real sector. The introduction of financial engineering as a tool for the development of Ukrainian corporate bond market and its schematic algorithm of the implementation will allow an investor to react in time to the market changes. The creation of the State Fund for the Guaranteeing of Income of the Investors Market Act, which is formed at the state level by analogy with the existing Guarantee Fund for Individual Deposits, will allow the fulfilment of the security parameter that will classify profit bonds as long-term debt instruments with a high credit rating.

scholarly journals Sunspots, GDP, and the Stock Market

2021 ◽  
Author(s):  
THEODORE MODIS
Keyword(s):  
Stock Market ◽  
Term Trend ◽  
Dow Jones Industrial Average ◽  
The Us ◽  
Long Term Trend ◽  
Future Horizon

A correlation has been observed between the US GDP and the number of sunspots as well as between the Dow Jones Industrial Average and the number of sunspots. The data cover 80 years of history. The observed correlations permit forecasts for the GDP and for the stock market in America with a future horizon of 10 years. Both being above their long-term trend they are forecasted to go over a peak around Jun-2008.

scholarly journals US Stock Market And Macroeconomic Factors

2015 ◽  
Vol 32 (1) ◽  
pp. 325 ◽  
Author(s):  
Francisco Jareño ◽  
Loredana Negrut
Keyword(s):  
Stock Market ◽  
Interest Rates ◽  
Price Index ◽  
Consumer Price Index ◽  
Macroeconomic Factors ◽  
Significant Relationships ◽  
The Us ◽  
The Relationship ◽  
Relevant Factors

<p>This paper analyzes the relationship between the US stock market and some relevant US macroeconomic factors, such as gross domestic product, the consumer price index, the industrial production index, the unemployment rate and long-term interest rates. All the relevant factors show statistically significant relationships with the stock market except for the consumer price index, and the signs are consistent with the findings of previous literature.</p>

scholarly journals The performance of Libyan stock market

2012 ◽  
Vol 60 (7) ◽  
pp. 27-38
Author(s):  
Atiya Aljbiri
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Comparative Method ◽  
Market Size ◽  
Financial Indicators ◽  
Financial Instruments ◽  
Short Time ◽  
Limited Choice ◽  
Made In

The objective of this paper is to answer the following question:. To what extent Libyan stock market developed to contribute to economic growth in Libya? This can be evaluated by using many financial indicators, these include stock market size, activity and efficiency, as well as the study including the regulatory framework, and information technology (IT) set in place by the market authorities. However, descriptive and comparative method was used. The results indicated that, despite the modest progress made in a very short time regarding all indicators which the paper calculated, however, it can be said that Libyan stock market remain largely underdeveloped, small and relatively inefficient. Its market capitalization to GDP is very low and investors have no access to long-term capital. In addition, the market still have very low liquidity and investors still have a limited choice of financial instruments and face liquidity problems. In the end of this paper was its conclusion a set of recommendations that can be used in developing a program that aims to speed the development of Libyan stock market and increase its efficiency.

scholarly journals Application of the Value Averaging Investment Method on the US Stock Market

2015 ◽  
Vol 63 (6) ◽  
pp. 2151-2160
Author(s):  
Martin Širůček ◽  
Ivana Škatuĺárová
Keyword(s):  
Stock Market ◽  
Real Data ◽  
Investment Horizon ◽  
Medium Term ◽  
Short Term ◽  
Specific Investment ◽  
The Us ◽  
Expansion Period ◽  
Annual Risk

The paper focuses on empirical testing and the use of the regular investment, particularly on the value averaging investment method on real data from the US stock market in the years 1990–2013. The 23-year period was chosen because of a consistently interesting situation in the market and so this regular investment method could be tested to see how it works in a bull (expansion) period and a bear (recession) period. The analysis is focused on results obtained by using this investment method from the viewpoint of return and risk on selected investment horizons (short-term 1 year, medium-term 5 years and long-term 10 years). The selected aim is reached by using the ratio between profit and risk. The revenue-risk profile is the ratio of the average annual profit rate measured for each investment by the internal rate of return and average annual risk expressed by selective standard deviation. The obtained results show that regular investment is suitable for a long investment horizon or the longer the investment horizon, the better the revenue-risk ratio (Sharpe ratio). According to the results obtained, specific investment recommendations are presented in the conclusion, e.g. if this investment method is suitable for a long investment period, if it is better to use value averaging for a growing, sinking or sluggish market, etc.

scholarly journals ANALYSIS OF PRIVATE INVESTORS PARTICIPATION IN THE STOCK MARKET OF THE COUNTRY

2020 ◽  
pp. 22-29
Author(s):  
Наталья Борисовна Глушкова ◽  
Ирина Александровна Медведева
Keyword(s):  
Comparative Analysis ◽  
Stock Market ◽  
Private Investment ◽  
Financial Investment ◽  
Advantages And Disadvantages ◽  
Private Investors

Цель исследования - разработать рекомендации по расширению привлечения средств частных инвесторов на фондовый рынок страны. Описаны основные финансовые инструменты инвестирования, их преимущества и недостатки для частных инвесторов. Научная новизна заключается в проведении сравнительного анализа размещения частными инвесторами средств в облигации, акции и на индивидуальные инвестиционные счета. Дана оценка вовлеченности частных инвесторов на фондовый рынок страны. Определены основные проблемы, сдерживающие участие физических лиц в фондировании экономики. Авторами сформулировано ряд мер по развитию института частного инвестирования на фондовом рынке страны. The purpose of the study is to develop recommendations for expanding the attraction of funds from private investors in the country's stock market. The main financial investment instruments, their advantages and disadvantages for private investors are described. The scientific novelty lies in carrying out the comparative analysis of the placement of funds by private investors in bonds, stocks and individual investment accounts. The authors present the assessment of the involvement of private investors in the country's stock market. The main problems constraining the participation of individuals in funding the economy have been identified. The authors have formulated a number of measures to develop the institution of private investment in the country's stock market.

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