Verified Document

Intl Finance Term Paper

International Finance The performance of stock market indices is subject to a wide number of variables. In the past six months, one of the more interesting international markets to watch has been India. In late May, Narendra Modi ascended to the Prime Minister office in India, the highest position. His election campaign was controversial, being viewed by many as overtly nationalist, something that threatened to destabilize multicultural India. This, combined with India's status as a major emerging economy, has made India's stock market an interesting study. The BSE Sens, referring to the Bombay Stock Market, today sits at 26459. Six months ago, it was at below 23,000. The gain has been around 17% in the past six months, versus around 6% in the S&P 500.

It would appear that the Indian stock market has specifically gained a boost from the political environment. The Modi government was feared by many observers as a potential cause of civil strife in the country, but since his election that civil strife has failed to materialize. This has allowed the markets a moment...

Observers have argued that reforms to government from the Modi regime will be positive for economic performance and therefore the markets. This, combined with the lack of problems associated with the new regime, is credited with spurring growth in Indian stocks (Anand, 2014).
2. There are a number of types of bond instruments that are available for financing via debt. These include zero coupon bonds, floating rate notes, callable bonds, vanilla bonds and debentures (Stanlib.com, 2014). These represent a number of choices. A vanilla bond is just a basic bond, paying interest semi-annually, and issued at par. A zero coupon bond is not sold at par, because the lack of a coupon means that the issuer needs to offer it at a discount in order to move it. A call feature on a bond is valuable to the issuer, so again such a bond would need to be issued at a discount, albeit not as large a discount as a zero bond would have. Debentures on very long-term bonds.

There is also the question of currency. The issuer in this example is European,…

Sources used in this document:
References

Anand, K. (2014). 100 days of Narendra Modi government: Sensex rallies nearly 9%, top bets. The Economic Times. Retrieved October 8, 2014 from http://articles.economictimes.indiatimes.com/2014-09-02/news/53479975_1_saugata-bhattacharya-gdp-growth-narendra-modi

Stanlib.com (2014). Bond markets and bond market instruments. Stanlib.com. Retrieved October 8, 2014 from http://www.stanlib.com/Individuals/knowledgecentre/Pages/Bondmarketsandbondmarketinstruments.aspx
Cite this Document:
Copy Bibliography Citation

Related Documents

Apple 10K Accounting and Finance
Words: 654 Length: 2 Document Type: Essay

ACCOUNTING AND FINANCE Accounting and Finance: Apple 10KAs the mission of the US Securities and Exchange Commission (SEC) is to safeguard its investors, which it does through offering mutual funds, retirement plans, and various other types of investments (SEC. gov, 2021). They believe in treating everyone equally and fairly, for which orderly market maintenance is believed to be mandatory. It is done by being responsive to the market needs that

Risks to the Global Capital Market "Beware
Words: 1536 Length: 5 Document Type: Essay

Risks to the Global Capital Market "Beware the next financial blind spot." Summary Gillian Tett's article exemplifies various issues and risks involving financing in and out of the bank. The world marketing systems and non-bank entities are taking shape because it happened during the managerial times of Mr. Paul Tucker. Tucker expresses the point of need for many financiers to understand and consider the effects brought by shadowy banks, most of which

International Management the BRIC Countries
Words: 2810 Length: 10 Document Type: Essay

This is attractive because Russia has long been industrialized, so its managers and workers are capable of functioning in that environment. There are many natural resources that firms can take advantage of as well. Additionally, Russia is a gateway to other markets with which it has close trade ties, throughout the former Soviet Union. India India is the second most-populous country in the world with 1.2 billion and may eventually overtake

Financial Corporates COVID 19 Pandemic
Words: 2337 Length: 8 Document Type: Term Paper

COVID-19 Pandemic on Financial CorporatesA dividend can be defined as the dispersion of some of the company�s incomes to a group of eligible shareholders as the firm�s board of directors determines it. Familiar stakeholders of dividend-paying companies are typically qualified if they possess the merchandiser before the date of ex-dividend. The bonus may be reimbursed out as coinage or as an arrangement of added merchandise. Additionally, fringe benefits are expenditures

Jack in the Box I
Words: 2956 Length: 11 Document Type: Term Paper

" Health experts declared that if Jack in the Box Inc. restaurants had obeyed Washington State's set of laws, the outbreak of an epidemic would have been prevented. Jack in the Box, on January 22, 1993, guaranteed "to do everything that is morally right for those individuals who had experienced illness after eating at Jack in the Box restaurants as well as their families." Due to the negative publicity the company

Microsoft Purchased Skype for 8.5 Billion Primack,
Words: 2096 Length: 7 Document Type: Essay

Microsoft purchased Skype for $8.5 billion (Primack, 2010). This marked the third time in five years that Skype had been sold, first to eBay and then to a private investment group. The company filed for an IPO, but that never came to pass as Microsoft entered the bidding and took over. There have been significant questions from industry observers about the value of Skype to Microsoft, and whether Microsoft

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now