Capital Markets and Investment Banking Process Free Essays

The investment environment is vast and can be overwhelming if not entered into correctly. Firm’s issuing new securities to enhance revenues understand the complexities and risks involved when entering the primary market, and will employ investment bankers to mitigate those risks. Described throughout this paper is the investment banking process and portfolio construction, factors for selecting the portfolio asset classes, the capital market instruments used in portfolio construction, and recommendations for the composition of an investment portfolio. We will write a custom essay sample on Capital Markets and Investment Banking Process or any similar topic only for you Order Now Investment Banking Process and Portfolio Construction Investment bankers work with firms issuing new securities as both an advisor and intermediary in setting security prices, interest rates, and marketing the new securities for sale in the primary market (Bodie, Kane, Marcus, 2008). The primary market is where firms are able to sell their new securities and obtain funds that are needed to increase their capital base. Firms issuing new securities are strategically working to raise funds; however, there is a potential risk that all the newly issued securities will not sell and the strategy to raise funds could fail.To mitigate this potential risk firms hire an investment banker as an underwriter. As an underwriter the investment banker assumes the risks by purchasing the firms new securities at a fixed price lower than the offering price to the public, and then sells the securities at the current market price for a profit (Hirt Block, 2008). â€Å"With underwriting, once the security is sold, the investment banker will usually make a market in the security, which means active buying and selling to ensure a continuously liquid market and wider distribution† (Hirt Block, 2008, P. 27).After the investment banker has sold the new securities issued by a firm in the primary market, those securities then become an existing asset that is traded in the secondary market between investors (Hirt Block, 2008). In the secondary market investors buy and sell the different existing assets which allow the market to operate efficiently, competitively, continually, and liquidity. Investors investing in these existing assets create a portfolio to monitor their current investment assets, and make their investment decisions based on their portfolio size (Bodie, Kane, Marcus, 2008).In the construction of a â€Å"top-down† portfolio the first step is asset allocation. â€Å"The process of building an investment portfolio usually begins by deciding how much money to allocate to broad classes of assets, such as safe money-market securities or bank accounts, longer-term bonds, stocks, or even asset classes such as real estate or precious metals† (Bodie, Kane, Marcus, 2008, P. 24). Once the asset class allocation has been determined by the investor the next step in the process is to select which securities to purchase.Once a security in an asset class is decided on an investor may perfor m a valuation through a security analysis. The security analysis will aid the investor’s decision by estimating the securities value and the positive or negative impact on the portfolio (Bodie, Kane, Marcus, 2008). Factors among asset classes in an investment portfolio During the asset allocation process in an investment portfolio there are different factors that must be considered by the investor before an asset class is decided upon.The three factors important to investors when creating an investment portfolio and conducting the asset allocation process is: their investing goals, their investing time horizon, and their level of risk tolerance (Investor Guide, 2010). When considering the factor of investing goals during the asset allocation the investor is determining both long- and short-term goals in terms of income, or return, requirements. When considering this factor an investor is able to factor out any of the asset classes that will not work with their investing goals.The next factor investors should consider once the goals have been established is the expected investing time horizon. This is an important factor to consider when deciding asset classes because asset classes that perform better long-term, such as stocks, could create a portfolio loss if the investor had only required a short-term investment and sold the stocks too soon while they were down (Investor Guide, 2010). If the investor had realized their short-term time horizon they could have purchased securities in the money market, such as a U.S. Treasury Bill, and avoided the portfolio loss. The last factor to consider in creating an investment portfolio, and during the asset allocation process, is the level of the investors risk tolerance. The risk tolerance factor is very important to consider because depending on the level of risk the investor is willing to take on will determine the asset class with the best suited securities, and the level of diversification needed to maintain that desired level of risk.Creating an investment portfolio can be overwhelming for investors when deciding on the asset classes that work best for their portfolio. However, during the asset allocation process investors should consider three factors in their investment needs to aid in the elimination of the asset classes that least fit those needs. An investor that factors in their goals, investment time horizon, and level of risk tolerance will narrow down the asset classes that will likely meet their investment needs. Capital market instruments in portfolio constructionThere are several capital market instruments that are used in the construction of an investment portfolio but the two main capital market instruments are stocks or equity securities, and bonds or debt instruments. â€Å"While all capital market instruments are designed to provide a return on investment, the risk factors are different for each and the selection of the instrument depends on the choice of the investor† (Maps of World Finance, 2009, para. 6). Investors that use stocks in their portfolio construction are investing in equity securities that represent an ownership share in a publically traded company.Investors that purchase a company’s common stock are seeking to profit through capital gains, which is a profit gained if the stock price at the time of purchase is less than the stock price at the time of sale (Bodie, Kane, Marcus, 2008). Using stocks as a capital market instrument in an investment portfolio is beneficial to investors that desire a long-term investment with moderate risk. Investors still take on the risk that the stock price will fall below the purchase price at the time of sale, or that the company will go bankrupt and the stocks will be worthless.The other major capital market instrument used in portfolio construction is debt instruments, or bonds. The debt instruments in the capital market are, â€Å"Treasury notes and bonds, corporate bonds, municipal bonds, mortgage securities, and federal agency debt† (Bodie, Kane, Marcus, 2008, P. 30). Investors that use bonds in their investment portfolio are investing in long-term debt instruments in an expectation to receive some form of income during the term of the security investment, and the total bond value when the security matures (Bodie, Kane, Marcus, 2008).Recommendation for composition of an investment portfolio Creating an investment portfolio before investing in any securities is an important part in earning the returns expected by an investor. When creating an investment portfolio inve stors should always consider their ultimate goal for the portfolio, the time horizon in which to achieve that goal, and the level of risk tolerance they are willing to take. Once these factors have been realized the investor then allocates the asset classes’ best suited for them.Once the asset classes are allocated, the investor then decides on the securities to invest in and conducts an analysis of the proposed securities value and the potential impact to the portfolio. These first recommended steps in the composition of an investment portfolio are an important aspect to building a profitable and long lasting portfolio. Through the planning and analysis of the portfolio requirements, investors will perform their due diligence, and create an investment portfolio that meets their investment needs and can be easily rebalanced as those needs and market conditions change.ReferencesBodie, Z. , Kane, A. , Marcus, A. J. (2008). Essentials of Investments (7th ed. ). New York, NY: McGraw-Hill/Irwin. Hirt, G. A. , Block, S. B. (2008). Fundamentals of investment management (9th ed. ). New York, NY: McGraw-Hill/Irwin.Investor Guide. (2010). Understanding asset allocation while building a portfolio. Retrieved from http://www. investorguide. com/igu-article-541-asset-allocation-understanding-asset-allocation-while-building-a-portfolio. htmlMaps of World Finance. (2009). Capital market instruments. Retrieved from http://finance. mapsofworld. com/capital-market/instruments. html How to cite Capital Markets and Investment Banking Process, Essays

Business Ethic and Sustainability for HRM Policies -myassignmenthelp

Question: Discuss about theBusiness Ethic and Sustainability for HRM Policies. Answer: Organizational Culture and Ethics Each and every business organization emphasizing on ethical behavior has the potential of cutting down on any form of misbehavior in the organization. Several research activities also show that when businesses develop culture emphasizing on performing the right deeds regardless of such deeds being expensive, such organizations leaders consider ethical consequences regarding their own actions. Organizational leaders that have a moral compass are always there to set the tone in relation to ethical dilemmas (Leonard 2017). Basically, the desire to do business with, work for or invest in business organizations that perform good things in the society happens to be strongest with millennials (Blades 2017). Such individuals have gained counterintuitively, a reputation of being behavioral experts as well as social scientists studying trends and demographics. On the contrary, it is evident that the advent of platforms of social media gives consumers a voice they never had. Social media has also ensured that consumers voices are heard more often; particularly in instances where business organizations do the right thing. A study performed by Aflac International established that approximately 51% of millennials link corporate growth to the use of social media. It is also worth noting that social medias impact constitutes access to information that is limitless. Social media ultimately enables consumers to get more informed. Such consumers are considered to be digitally engaged and have no issues with the provis ion of feedback to business organizations that they believe arent responsible in their operations. Such customers are also aware of differences between a communitys authentic concern and marketing ploy (Blades 2017). As much as work flexibility and salary are major factors that determine where an individual will likely work, approximately 77% of Aflacs respondents confirm that they would seek employment at business organizations that are ethically recognized. Companies, therefore, have a number of things to put right. Business organizations should start by adopting business causes that are vital for the communities they operate in as well as being relevant to their operations. The business activities shouldnt just be good; the activities need to be the right things to be done. Taking the case study of an organization such as Aflac which has supported the fight against cancer through time, it is worth noting that the community in which the organization operates has benefited a lot. For almost 20 years since the inception of the same campaign, the organization has donated more than $100 million. This money has been used for treatment and research activities on Cancer at several centers of the organ ization. Doing so is one of the good causes this VoP exercise is advocating (Szolnai 2017). Good deeds are sustained and relevant for every business operation. Such is also the proper thing to do. It is important to note, as mentioned earlier, that consumers favor business organizations that are able to demonstrate their abilities to handle social responsibilities. Corporate social duties are needed by generations of today while the importance of the same is; as well, bound to grow. For those that do not consider incorporating ethics, financial crises have certainly raised alarm for the need of including ethics in major market decision making processes. Failing companies have also learnt; from their mistakes, the extent to which corporate reporting has failed to determine risks that are systemic. Shifting to a model for reporting that supports long?term investors information needs as well as reflects the nature of environmental connectedness, societal factors and governance would be an essential step in the construction of an economy that is sustainable (Szolnai 2017). Business Ethics, Diversity and Discrimination Worldwide, there are laws that cover anti-discrimination and equal employment opportunities in the workplace. Each and every law, with regards to the country theyre formulated in, should ensure that every work environment is free from harassment and discrimination. The employers are also required to be quite conversant with their rights and responsibilities with regards to the anti-discrimination and human rights law. Through the placing of effective anti-harassment and anti-discrimination procedures, business organizations are able to increase efficiency and improve productivity (Szolnai 2017). The maintenance of diversity and ethical practices happens to be vital to many small businesses which would want to gain employees loyalty as well as the trust of customers. In the business world, the ethics training has well become a trend. Training of business ethics has helped align the staff to ensure that the broader vision of the organization gets achieved. The beginning of ethics is the assumptions that each and every employee lives in accordance to the moral guidelines as well as conduct themselves accordingly while in their work environments. Regardless of how large and influential a company is, unethical behavior within the environment of the company can cripple its ability to have customers attracted. Business organizations may be faced with ethical issues as well as setting ethical standards of operation due to the fact that such instances are common professional practices in several fields including psychology. Financial officers, beyond professional practices, need to m aintain responsibility that is fiduciary (Leonard 2017). Sales teams are also required to give information that is reliable and honest during the sales process (Szolnai 2017). Regarding diversity, business organizations need to ensure that their workplaces everyone regardless of their socio-economic backgrounds. Diversity is also one of the ways through which business organization are able to ensure that every employee accesses equal opportunities in activities like getting hired. Micro and small business organizations ensure that they maintain programs of non-discrimination as well as enforce non-compliance penalties. Apart from the issues associated with legal compliance within the diversity of workplaces, business organizations can as well benefit from encouraging tolerance as well as embracing differences. By so doing, business organizations ensure that they open new horizons to access new customer demographics, methods of internal performances and business partners. All kinds of businesses, small or big, are exposed to cultural diversity within the workplace, education levels and even demographics. Handling such a situation in a manner that is appropr iate has the chance of improve the opportunities of the business in future. Ensuring cultural diversity and ethical operations within a business organization, however, requires management training. Most business organizations have established training programs that would exalt diversity and ethics. For those organizations that are still on the rise, they need to have a small code of ethics written or instead create a diversity standard as well as practices that are non-discriminating. The writings should then be added to the handbooks given to the employees. Apart from just writing out such policies, employers also need to conduct sessions of training for managers as well. Having to provide managers as well as team members with tools for dealing with conflicts in situations that are difficult is one way of reducing issues of diversity and ethics in future (Leonard 2017). Ethics and Employment Relationships Most business organizations try as fast as possible to address cases of workers either being uncertain or uncomfortable to ensure that risks of conflicts are avoided. In other cases, institutions that uphold certainty are employed to ensure that such instances of chaos are avoided between employees (Harman 2013). To ensure that issues regarding employee-management relationship are derailed, the following topics are worth addressing: Power distance This is the aspect of having the society and the employees agreeing that organizational power is either equally or unequally distributed. Greater power distance is whereby; there is unequal distribution of power. However, smaller power distance is whereby power is fairly or equally distributed; and the employees conform to the distribution of such power. Avoiding uncertainty Regarding this factor, as mentioned before, employees uncomfortability level as a result of ambiguity and uncertainty should be addressed. In business organizations, certainty supporting beliefs should be upheld alongside the sustenance of institutions protecting conformity (Kader 2017). Collectivism and Individualism In this case, individualism is regarded as preferring a social model which happens to be loosely knit in a given community. On the contrary, collectivism is termed as a social models choice and of which is tightly knit. Femininity against Masculinity Regarding this context, masculinity refers to the preference of fulfillment, forcefulness and materialistic success. However, femininity is all about the preference for modesty, relationships and upholding care for each and everyone weak or strong (Kader 2017). With regards to the theory of cross-cultural management, there are different levels of culture. As mentioned in this PoV, such dimensions are power distance, masculinity-femininity, long-term against short-term orientation, individual collectivism and uncertainty avoidance (Kader 2017). In another perspective, "The Idea of Responsibility" by Jonas provides evidence that a new form of ethics that is vital for the current technological age is advocated for. Some of the theses that the article is based on include: The nature of human action has been enlarged with the novelty of natures works such that it would impact on the global future (Harman 2013). Power and responsibility correlate and as such, responsibility needs to commensurate with the scope and exercise of power. Ethics need to be underpinned by metaphysics. From that perspective, attempts are made at the duties of man to himself and his posterity. Mans objective imperatives enable the discrimination between illegitimate to legitimate goal-settings with regards to Promethean power. For some time now, human action has naturally changed that a call for changes in ethics needs to be made as. In past ethics, any dealing with the world of the nonhuman happened to be ethically neutral (Hamel 2017). The significance of ethics only came into play when dealings involved humans alone; including aspects of man dealing with himself or herself. The traditional form of ethics was anthropocentric. Actions range also happened to be small and the time for goal-setting, foresight and accountability also happened to be short; circumstances control also limited (Hamel 2017). However, there has been the emergence of new responsibility dimensions since nature turned to a subject of human responsibility. Such can be attached o the fact that mans impacts on living things are cumulative and irreversible. Having knowledge on such circumstances as to which makes man responsible of the living world happens to be a prime duty of everyone. Reference Assignment Centre, U. (2017). The importance of HRM Policies And Practices Business Essay. Uniassignment.com. Available at: https://www.uniassignment.com/essay-samples/business/importance-of-hrm-policies-and-practices-business-essay.php [Accessed 25 May 2017]. Bala, R. (2017). Unit Guide. [online] Unitguides.mq.edu.au. Available at: https://unitguides.mq.edu.au/unit_offerings/72118/unit_guide [Accessed 15 May 2017]. Blades, C (2017). Why Doing Good Means Good Business. [online]. Available at: https://fleishmanhillard.com/2016/05/true/why-doing-good-means-good-business/ [Accessed 26 May 2017] Contingency Planning, (2017). Contingency Planning: Developing a Good 'Plan B'. [online] Mindtools.com. Available at: https://www.mindtools.com/pages/article/newLDR_51.htm [Accessed 25 May 2017]. Drucker, P (2017). Managing for Business Effectiveness. [online] Harvard Business Review. Available at: https://hbr.org/1963/05/managing-for-business-effectiveness [Accessed 25 May 2017]. Hamel, G (2017). Example of a Business Contingency Plan. [online] Smallbusiness.chron.com. Available at: https://smallbusiness.chron.com/example-business-contingency-plan-12292.html [Accessed 26 May 2017]. 2013. Code of Ethics: Principles for ethical leadership. ,10(Winter). https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3544144/ Harold, Kerzner. 2013. "Project Management: A Systems Approach To Planning". Hoboken: Wiley Scheduling And Controlling, no. 11. Kader, M. (2017). Strategic Management (StratMgt). Open2study.com. Available at https://www.open2study.com/courses/strategic-management [Accessed 20 May 2017]. Kendrick, Tom. 2014. "The Project Management Tool Kit : 100 Tips And Techniques For Getting The Job Done Right". American Management Association, no. 3. Leonard, K. (2017). Diversity Ethics in the Workplace . [online]. Available at: https://smallbusiness.chron.com/diversity-ethics-workplace-4928.html [Accessed 20 May 2017] Szolnai, L. (2017). Environmental ethics for business sustainability. [online]. Available at: https://www.researchgate.net/publication/227429417_Environmental_ethics_for_business_sustainability [Accessed 26 May 2017]

Traditional Irish Music vs. Other Musical Styles Essay Example For Students

Traditional Irish Music vs. Other Musical Styles Essay He has released over 10 albums and live recordings. On each album his playing and composing styles have evolved and changed. In 1987 his music was internationally recognized with his album The Dolphins Way it became clear from these albums that Michel was interested in bringing orchestral elements into his music. Since then his recordings and concerts range from solo traditional Irish piano playing to piano with a string orchestra sometimes he also includes Jazz soprano saxophone. Describe the music or a composer who has combined traditional Irish music with another musical style. Michel (5 Slabeling is an Irish pianist, composer, recording artist and academic. He is an example of a composer who has combined traditional Irish music with another musical style. He is the professor of Music at the Irish World Music Academy of Music and Dance which he founded at the Michel Slabeling is a pianist with an Irish piano playing style. He has with a string orchestra sometimes he also includes Jazz soprano saxophone.

Anna Karenina essays

Anna Karenina essays Anna Karenina by Leo Tolstoy is a novel about love and marriage among the Russian aristocracy in the 1870s. Anna is young, beautiful woman married to a powerful government minister, Karenin. She falls in love with the elegant Count Vronsky and after becoming pregnant by him, leaves her husband Karenin and her son Seryozha to live with her lover. Despite the intervention of friends such as her brother Oblonsky, an adulterer himself, she is unable to obtain a divorce, and lives isolated from the society that once glorified her. As a man, Vronsky enjoys relative social freedom, which causes Anna to have increasingly intense fits of jealousy. Because of her constant suspicion, she thinks that Vronskys love for her is dwindling. Their story is ended by an exciting finale that moves the reader. Interwoven with the story of Anna, is the tale of Levin, a thoughtful, passionate young man who seeks to marry the Princess Catherine Shcherbatskaya, known as Kitty. Kitty rejects his first proposal because she believes that Vronsky, who flirted with her before he met Anna, intends to marry her. Levin is devastated and withdraws to his country estate and works on a book about agriculture. But the couple reunites through another appearance of Oblonsky, Kittys brother in law, and they discover that they are deeply in love. Kitty joyfully accepts Levins second proposal. Once married, they live happily in the country, host their families and guests during the summers, and have a son. Levin's philosophical doubt and religious skepticism trouble him despite his domestic happiness, but, after a spiritual enlightenment, he finally recognizes that the capacity for goodness is innate. He devotes himself to living for his loved ones, and to giving his life meaning by advancing the will of God . Anna Karenina is a timeless classic and has been acclaimed by many literary critics as the best or one of the best novels of all time. One critic te...

Alcotts Luminous Crystals essays

Alcotts Luminous Crystals essays Robert Alcotts Luminous Crystals were truly beautiful, amazing works of art. It was my first time to an art show and I was able to attend the opening so that made it an even more memorable experience. I was very impressed by his work found it truly beautiful. It was unreal to me that they were all so different but all taken of crystals. It is almost unbelievable that such astonishing colors and variety among the pictures could all be produced from these laboratory grown crystals. The images vary in just about every aspect possible, but all contain the principles of design along with numerous visual elements. Some of his photographs were filled with every color on the spectrum. For example, # 10 and # 18 contained a variation of every color on the color wheel. They are filled with every vibrant color, and each is easily distinguished from the rest. Then there were others such as # 78 and # 100 that were more of an analogous color scheme using blues, browns, and white. #78 also a very spherical, symmetrical feeling to it. # 27 showcases colors from the cool side of the color wheel. All of Alcotts pictures are beautiful displays of color. Color is the most obvious visual element present in all the photographs but there are others that can be seen as well. Implied texture was another element that was seen in many of Alcotts works. Some of the paintings appeared to be very smooth and looked like flower petals. # 10 and #27 both had this appearance of petals. # 100 also resembled a flower but it looked more like a dried plant. The texture appeared to be that of straw if you were to touch it. #18 also had texture that you would believe you could touch. # 2 appeared to be representative of a landscape featuring snowy mountains and trees. All of Alcotts photographs are purely abstract but it is still possible that different images would appear to different people. ...

Are International institutions effective in solving collective Research Paper

Are International institutions effective in solving collective Problems Case study of Treaty on the Non-Proliferation of Nuclear Weapons and North Korea's Nuclear crisis - Research Paper Example A plan offered by the United States in 1946 also proposed that all nuclear arms and technology come under international control and ownership. However, the post World War efforts did not seem to work out too well and it was later on that countries started to pledge allegiance to the NPT (Non Proliferation Treaty) which kicked off in 1968 and became effective in 1970. A list of around 190 countries are signatory to the treaty. The NPT rests on the premise that the non-nuclear nations would agree to never pursue any sort of acquisition of nuclear arsenal whereas the nuclear weapon state would share the benefits of it with the non-nuclear states. The treaty is reviewed for changes every 5 years and as of now, stands as being extended till an indefinite period. North Korea had the USSR as its strongest communist ally at the time of the cold war. When the cold war came to a close, Soviet Russia had weakened substantially. North Korea, that looked upon it as a security guarantee began to think that now it should itself do something to curb the situation. Therefore, in 1989 the United States, through its intelligence network, found that North Korea which had signed the NPT is in the early stages of building an atomic bomb. In 1992 North Korea allowed a team from the IAEA (International Atomic Energy Commission) to undertake visitors to its nuclear facilities. The inspections seemed to not go as expected and North Korea had blocked the commission from visiting some of its facilities. In 1994 an â€Å"Agreed Framework† was reached between America and North Korea that stated that N. Korea would abandon its nuclear program and the U.S. would provide oil for electricity and better economic ties would be maintained .Also, the atomic plants w ould be replaced with light water nuclear power plants .However, the routine inspections would continue by the IAEA, However in late 2002, George Bush

Overt Police Patrol Essay Example | Topics and Well Written Essays - 2000 words

Overt Police Patrol - Essay Example The most important task that a policeman does is Patrolling his specific sector. The purpose of patrolling is to observe, inspect and provide security to those people who are living under that jurisdiction. The patrol officer is responsible for his district and is held accountable for the actions taking place in his district. Patrolling is the most visible aspect of policing. It can be both overt and covert in nature. The overt patrolling involves visible cops in uniforms with all the basic items a "cop" carries. They have marked vehicles and are easily differentiable from the civilians because of their get-ups. The covert police patrol force use unmarked vehicles and inconspicuous garments which help them monitor and observe the people in a secretive manner. Patrol officers are the bridge which join the police agency with the common people as these officers are on the front ranks and know the people as they interact with them on their rounds. The officers are however the lowest paid and often receive less respect than their posts and important function deserve. Today, the four basic functions of patrolling are: Crime prevention (proactive deterrence), order maintenance (security), social services (community welfare) and of course law enforcement (reactive deterrence). 2 The effectiveness of patrolling has long been under dispute. Whether patrol officers have been able to reduce crimes in their locality and been able to apprehend criminals before the crime actually took place is a study which many police stations and law enforcement agencies wish to determine. The overall cost of patrolling is high as the fuel consumption and mental spare-time of the policemen are both wasted. A patrolling officer must fight boredom and must be fully aware of what is happening around him or else his purpose is useless. But this problem plagues many police officers and they have difficulty in applying their full 100% concentration on their duty. The effectiveness of overt patrolling can be observed comparing various studies conducted by the various legal departments over the world. The assignment will highlight various studies which took place to observe the effectiveness of overt patrolling and covert patrolling. A study was conducted in the state of Victoria. In the rural regions the occurrence of crashes of vehicles going over 100 km/hr was observed and a study was conducted by K. Diamantopoulou & M. Cameron 3 to observe the effect of overt and covert traffic patrolling and whether any specific style of patrolling would help in reducing the number of accidents in the region. Their study showed results that the best solution to the problem was to use covert style of patrolli