Global Financial Market
Introduction……………………………………………………………………………………P.2
Importance of stock market…………………………………………………………….P.2
Primary market...………………………………………………………………………….P.2-3
Resource allocation in the primary market….………………..P.3
Risk pricing in the primary market………………………………..P.3
Risk management in the primary market……………………P.3-4
Secondary market…………………………………………………………………………….P.4
Mobilize Savings in the secondary market…………………....P.4
Investment Opportunities in the secondary market………P.4
Stock market and economy (Statistical analysis)……………………………P.4-5
Conclusion……………………………………………………………………………………….P.5
Introduction
The global economy has experienced slow growth since the U.S. financial crisis of 2008-2009 and the European debt crisis, in which has exposed the unsustainable fiscal policies of countries in Europe and around the global market. The European debt crisis and U.S financial crisis are the key incidents affecting the world financial markets in the period of 2010-2012. With the market turmoil of 2008 and 2009 in fairly recent memory, investors were feared to take risk in the stock markets, as instabilities of global stock market accordingly enhanced. Stock market is a key element prior to reflect the performance of economy. It is an important part of the economy of a country. The stock market plays a pivotal role in the growth of the industry and commerce of the country that eventually affects the economy of the country to a great extent. That is reason that the government, industry and even the central banks of the country keep a close watch on the happenings of the stock market. The stock market is important from both the industry’s point of view as well as the investor’s point of view. Through this assignment, with particularly focusing on the performance of Hong Kong stock market, I am going to discuss the roles of the stock market that affect the economy by elaborating the functions of
Importance of stock market…………………………………………………………….P.2
Primary market...………………………………………………………………………….P.2-3
Resource allocation in the primary market….………………..P.3
Risk pricing in the primary market………………………………..P.3
Risk management in the primary market……………………P.3-4
Secondary market…………………………………………………………………………….P.4
Mobilize Savings in the secondary market…………………....P.4
Investment Opportunities in the secondary market………P.4
Stock market and economy (Statistical analysis)……………………………P.4-5
Conclusion……………………………………………………………………………………….P.5
Introduction
The global economy has experienced slow growth since the U.S. financial crisis of 2008-2009 and the European debt crisis, in which has exposed the unsustainable fiscal policies of countries in Europe and around the global market. The European debt crisis and U.S financial crisis are the key incidents affecting the world financial markets in the period of 2010-2012. With the market turmoil of 2008 and 2009 in fairly recent memory, investors were feared to take risk in the stock markets, as instabilities of global stock market accordingly enhanced. Stock market is a key element prior to reflect the performance of economy. It is an important part of the economy of a country. The stock market plays a pivotal role in the growth of the industry and commerce of the country that eventually affects the economy of the country to a great extent. That is reason that the government, industry and even the central banks of the country keep a close watch on the happenings of the stock market. The stock market is important from both the industry’s point of view as well as the investor’s point of view. Through this assignment, with particularly focusing on the performance of Hong Kong stock market, I am going to discuss the roles of the stock market that affect the economy by elaborating the functions of