Shadow Banking Failure of Regulation During the Sub-Prime Crisis
This paper examines the shadow banking system, its role in the subprime mortgage crisis, and failures of regulation within the shadow banking system. The term "shadow banking system" was coined by PIMCO's Paul McCulley in 2007 and refers to a banking system that includes financial intermediaries that are involved in creating credit across the global financial system, whose functions are not subject to regulatory oversight. The question has been debated as to whether shadow banking meets the definition of true banking. Given that the two systems perform similar functions, including credit intermediation and maturity transformation, the two should be considered parallel systems.
Stock Price Trading Value and Stock Price
In their 2005 article, Gunduz and Hatemi-J have explored the relationship between stock price and volume by using information from the major stock markets of Central and Eastern Europe. They have made use of the Toda-Yamamoto (1995) procedure to determine Granger causality among the variables. The findings of their study provide insight into the different ways stock price and volume influence, and are influenced by, one another. In fact, in some cases, as in the Czech stock market, it was found that no causal relationship between stock price and volume exists. A unidirectional relationship was observed in some markets while in other markets a bidirectional relationship was observed. Therefore, a conclusive statement about the causal relationship between trading volume and price cannot be made.