Notes On The Global Financial Crisis Essay - 1431 Words

Abstract The recent turmoil in the global financial market has given rise to an argument on what policy measure or controls should be imposed to curb excess stock price volatility. One such restrictions were placed on short selling to reduce speculative trading.The aim of the present paper is to consider the impact of the measures placed on short selling following the 2008 global financial crisis. This report assesses the success of the interim measures in achieving these objectives, and also considers the impact the interim measures had on the market, participants in the market and other stakeholders What is short selling? The short sale of a security that is not owned by the seller of the stock, or the seller has borrowed. Short selling is the belief that the price of a security will decline, at a lower price to make a profit, you can buy it back at a reduced cost in future. There are two general types of short sale transactions: (A) short sales covered: a person sells a financial product they can trust agreement existing loan to have a right exercisable and unconditional to confer the product the buyer at the time of sale; and (B) short sales Uncovered: the seller has no arrangement in place to borrow the financial product at the time of sale and therefore does not have a right exercisable and unconditional to confer the product. 1 These measures included, in summary: (a) the temporary banning, with some exemptions, of the covered shortShow MoreRelatedNotes On The Global Financial Crisis1614 Words   |  7 Pageseither hedge risks or to open speculative positions. 1. Introduction The latest global financial crisis, starting from the United States since 2007, has pushed the financial derivatives to be a hot spot. The publics usually believe that the inappropriate application of derivatives should be to blame for this, which is totally wrong. It is apparent that there is no single financial crisis resulting from only a kind of financial product. Whatever the instrument is, including credit derivatives and basicRead MoreNotes on the Global Financial Crisis829 Words   |  3 Pages1. The global financial crisis did not reduce my income, but I think that if I did see reduced income, I would either cut back on discretionary purchases or I would buy cheaper brands. Certainly with things that I have to buy, like food or toiletries, cheaper brands are usually purchased. This contrasts with products that are completely discretionary, where my consumption might be severely curtailed or cut back entirely. The reason for this is simple. When there is less money to go aro und, and thereRead MoreAccounting Fraud721 Words   |  3 Pagesoutline in NOTE form. Submit this completed outline on Monday WK 4 together with your articles (4 or 5), a reference list notes on your articles that will be used as support for your arguments/points. Remember you MUST highlight the sections on the articles that you are going to use as support in your essay and you MUST write next to these sections, what paragraph in your essay the ideas will be used in. i.e. Definition paragraph, BP1, BP2, BP3. (BP = Body paragraph). Note: StudentsRead MoreBasel III1155 Words   |  5 PagesStudents will receive a Case Note on which to base their case analysis in response to the questions below. You will find it useful, if you do not have exposure to the case method, to review â€Å"How to Write a Case-Based Essay† [by William Ellet - provided]. Assignment questions 1. Discuss the relationship between the capital base of banks and the 2007-2010 global financial crisis. Using your own research, cite at least two examples of real world financial institutions. 2. 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