Finance

A corporate business enterprise is established under a specific legal framework where laws governing the operations and functioning of the enterprise are outlined. The activities of the enterprise are monitored and therefore such an enterprise is recognized by law. This is important due to the fact that legal suits can be filed by the enterprise within the provisions of the law.

c. Smaller payments mean more time in debt. d. Your lower interest loans also get rolled into the deal so you end up with minimal savings.

1. Describe a real or made up but realistic situation that could cause you or someone you know to have to use money from a financial reserve. (3-6 sentences. 2.0 points)

My parents receive an earned income, meaning they work for it, unlike unearned income like child support and disability. My mom works as a Human Resources Director; she over sees all investigations in her facility and hires and fires people. My dad works as an Operations Sales Manager, so he over sees all of the different sales. They both have salary wages, so their income isn’t based on hours.

There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).

Second City Options (SCO) is a small firm that specializes in option trading. Employing 35 people, SCO is located on LaSalle Street in the Chicago financial district. It is a member firm of the Chicago Board Options Exchange (CBOE), where it trades options on stocks and stock indices. It is also a member firm of the Chicago Mercantile Exchange Group (CME Group), where it trades options on futures and the underlying futures contracts.

Table of Contents ................................................................................................................................................ 1 Assignment Background .................................................................................................................................. 2 Bigg-Glowbell Overview ...................................................................................................................................... 3 The Company History ...................................................................................................................................... 3

1(a) Financial System is a complex yet connected system that consist of financial intermediaries, financial institutions and financial assets.

Financial regulation is necessary and without an efficient set of regulations a country could see rises in unemployment, interest rates, and the deterioration of financial intermediaries. With the globalization of the financial industry, it becomes more and more common for businesses to seek financing outside of their county 's boarders. These innovations in the financial industry stress why it is so important for regulations to be created and changed to reduce risk and asymmetric information in financial systems.

History shows that financialization has not only touched the United States, but has been a part of the cycle of economies throughout time. It affected Spain in the 1300s as well as England in the 1800s and 1900s. The definitions of financialization are many. One definition says that with regard to the operation of the economy, it has to do with the increasing importance of financial markets, motives, institutions, and elites (Assa 2012). Adam Smith defined it as the “growing scale and profitability of the finance sector at the expense of the rest of the economy and the shrinking regulation of its rules and returns" (Collins 2015). It has also been said that in addition to its influence over the economy, its reach extends to other societal institutions such as government (Gautam 2014). The literature on financialization written in the last few decades highlights negative impacts on “both the real and financial sides of the economy” (Assa 2012).

A financial system is a conglomerate of institutions, markets, instruments and operators that interact to provide such financial services as resource mobilization and allocation, financial intermediation and facilitation of foreign exchange transactions. The Nigerian financial system can be categorized into 2 AAU JMS Vol. 1, No. 1, December 2010.

“It is a safe bet that change in financial market and financial institution will mark the discipline of finance over the foreseeable future and will produce new kind of institutions, markets and securities. (Fabozzi, 2002) Financial market and financial institution are playing more and more important roles in modern financial system. In general, a financial market is a mechanism for trading financial assets and securities in financial system. Financial assets are exchanged in financial markets. Financial intermediaries are institutions that channel funds from savers and depositors with cash surplus to people or organisations with cash shortage. The function of financial market and its classification, the effect of financial institutions, the role of financial intermediary and its category and government supervision in financial market and institutions are the four major parts in this essay.

1. An international bank loaned money to an emerging country a few years ago. Because of the nonpayment of interest due on this loan, the bank is now negotiating with the borrower to exchange the loan for Brady bonds. The Brady bonds that would be issued would be either par bonds or discount bonds with the same time to maturity.

Financial systems and financial regulators are entities setup by the government of a country to ensure the availability and flow of financial resources in a fair and lawful manner without exploitation or monopolization of the resource by individuals or organizations. The task of ensuring the availability of finance and its transference is taken up by the financial systems of a country while the task of monitoring and regulating is taken up by the financial regulator.

6. Deficiencies on the part of banks like delay in release of funds and delay in release of subsidiesby government.