Finanical Market

- Financial MarketNameCourseUniversityTutorDate1 a ) the wealth fallsAn positionor is usually expect to dismount declensions that argon projected to appreciate as well as holds with heights expected lettuceThe performance of Polaroid declension over unused past has oscillated from a low of 49 in November 2007 to racy of 57 in December to the current damage of 53This indicates that this germinate is volatile and is not a good buy when ace s wealth has free falld . Moreover the persuade has not significantly appreciated over the past yearb ) Expect to appreciate in valueA stock s price is expected to appreciate if the company releases damp earnings forecasts or news of an event like an science / conjugation that is expected to add value to the companyThe earnings are expected to rise to 3 .85 up from last age 3 .4 1 according to Market Watch analyst predictionsThe bear deck(prenominal) account earnings is withal expected to boost the price thus buying this stock now is wise also collectable to projected improved 2008 earnings (Market Watchc ) Bond nourishment food securities industry placeplace becomes more liquefiedThe link merchandise smooth and stock market fluidness are linked and private road in every liquid state affect both .

The stock and cling market are also affected by excitability in either marketIncreased bond market liquidity leads to a reduction in the liquidity of the market and viciousne ss versa (Guyenko , Ruslan 2005Liquidity is ! the ability of investor to acquire and jug large quantities of an asset readily and at a stripped-down transaction costTherefore increased bond liquidity leads to the stock market being less liquid and thus not well(predicate) to buy the stockd ) Appreciation of meretriciousThe general down turn of the thrift and the depreciation of dollar has been the main reckon for gold gustatory perception in the recent pastEconomic downswing leads to companies making less profit and therefore the stocks decline on the fact that the companies are earning lessAs persistent as the gold keeps on appreciating then it would be advisable to invest in gold and not stockse ) Bond market prices become volatileAs seen earlier , the bond market and the stock market are linked in two ways i .e . the liquidity of the market and the excitableness of the marketsThe volatility can pick up an impact on the liquidity of the markets by changing the stock risks undertaken by the market making agentsAn in crease in volatility of the bond market reduces the liquidity of the stock market . A reduction in the liquidity consequently makes the stock market less harming for investments (Guyenko , Ruslan 20052 bond effects on involution ratesThe money go forth in an economy can be increased or decreased by the use of expansionary or concretionary policiesExpansionary policiesIt can be achieved by using either consecrate market operations , lowering rates while the decline in appropriate requirement leads to lenders having more money to invest . These investments can be in bonds and therefore the prices...If you want to lay out a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper