Stock Market Essays

Equity Warrant Bonds

Equity warrant bonds are bonds issued with equity warrants attached. Warrants are similar to share options, and give their holder the right but not the obligation to subscribe for a fixed quantity of equity stocks in the company at a future date, and at a fixed subscription price (exercise price). When bonds are issued with warrants, the warrants are detachable and can be sold in the stock market separately from the bonds. Investors might therefore subscribe to an issue of…

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Are Australian Stock Markets Efficient

The Efficient Market Hypothesis (EMH) was developed by Professor Eugene Fama at the University Of Chicago Graduate School Of Business. The basic concept of market efficiency is that a market is efficient when current prices are representative of all the information about a security which is available to the public. He described an efficient market in his famous work, “Efficient Capital Markets: A Review of Theory and Empirical Work” as “a market in which firms can make production-investment decisions, and…

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Causes of the Stock Market Crash of 1929

List and describe the causes of the stock market crash of 1929. Was the crash inevitable? Explain using examples from the presidencies of Harding, Coolidge, and Hoover. It was the time of the Roaring Twenties; where in the wake of the War jazz music was becoming prominent, Art Deco became popular, and cultural dynamism was emphasized. The twenties also led the United States into unprecedented industrial growth, inventions and discoveries of major importance, as well as significant changes in US…

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Nobles Crus – a Case on Wine Valuation

As an investment in future drinking – buying young wines which will improve over time. * As a financial investment – buying wines with the sole intention of reselling them later for a profit. The global demand for fine wine has increased enormously over the last few decades. Wine as a financial asset outperformed benchmarks such as Dow Jones, FTSE 100 etc, and offered spectacular returns. It also offered stability against volatility of the Stock Market. Stake holders The prices…

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Satisfying All Stakeholders Is Difficult When the Business Is Competing in Mature Product Markets

A stakeholder is defined as β€˜an independent party with an interest or concern in something’. Stakeholder groups are not all alike and therefore will want different things from a business. As each stakeholder deals with the business in different ways these needs are likely to conflict. With all of these differing needs it will be difficult for the business to satisfy all stakeholders at the same time as it is likely that acting to satisfy one stakeholder’s needs will end…

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Overreaction Hypothesis in the Uk Stock Market

The Stock market movements are often influenced by the availability of information on the various securities that is being dealt with in the market. Depending on the information flow, the stock’s price moves up and down reflecting the mood of the market. Under an efficient market, since the stock prices already represent the available information, they will move only when new, unexpected information becomes available. The movement of the stock prices is largely determined by the relative merits and demerits…

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