Question 1: What are the most important stock markets in the world, outside the U.S.? List and describe.
There are multiple stock exchanges in the world, which have significant impact on trading activities worldwide. However, the most important stock exchanges outer than US, that fall under top ten lists include but not limited to Tokyo stock exchange, London stock exchange, Shanghai stock exchange and Hong Kong stock exchange. This stock exchange are considered as most important and included in the top ten lists based on their trading index. Large number of public and privet companies is listed in the exchanges that belong to both national and international trade.
Question 2: What is today is importance of stock markets in general?
Today’s business world is fast, dynamic and challenging. Economic activities are taking place rapidly. In such a fast-paced business environment, importance o stock market is twofold. Stock markets are important for the economy of the country. Stock exchange plays an important role in the development of the country and its economics. Therefore, governments, economy and even central banks keep an eye on the operations of stock markets. They provide reliable place for trading of the stock through different countries. Stock markets provide an option to sell their stock in the market to expand its business operation for the sake of profitability.
Question 3: What is the function they provide?
Stock exchange is engaged in different functionalities. It lists the companies are provides place for trading of securities. Companies list themselves and offer their shares to be traded in the stock exchange. Companies issue shares and sell their stock for fund raising and expanding their business. Moreover, stock markets play a common role of buying and selling of stock for public. Both retail investors as well as institutional investors trade securities. These functionalities play an important role in trading activities for individuals and organizations to sell their securities and stock for trading purpose.
Question 4: What are investment strategies? Compare and contrast Fundamental Analysis vs. Technical Analysis
In finance, investment strategies are set of behaviors, procedures and rules, which are designed to guide investors for selecting investment portfolio. The most optimum investment strategy is chosen for investment portfolio. These strategies are described as risk and return trade off for the investment. Fundamental analysis of the investment reveals overall industry and economic conditions related to financial conditions and management. Technical analysis reveals evaluation of different securities with the employment of statistical procedures. Different form of statistical data is analyzed such as customer and transaction information. This data is analyzed and appropriate results are framed to make appropriate decisions about investment.
History of the DOW and the NASDAQ, and S&P 500:
NASDAQ was affected majorly by Innovation are Internet bubble of 1995, Financial crisis of 2007 and the bulls market of 2010s. S&P 500 was primarily affected in the past by Stock splits, share Issuances, Share Repurchase, Special cash Dividend, Company changing, rights offering, spinoffs and mergers. Dow Jones was affected by the world wars, dot com booms, post era of internet boom and the bull market of 2010s. It is further effected by exchange-traded funds, leveraged and short funds, futures contracts, options contracts and correlation between components
Dow Jones and company is US firm that publishes financial information, which is owned by News Corporation. The company is valued at 17,477.67 with slight decline of -1.42%. This figure is for November 04, 2015. NASDAQ is an US and Canadian stock exchange. The exchange plat form is owned by OMX group. It is valued at 5,037.53 with slight decline of -1.67. This figure is also for November 04, 2015. The chosen stock for comparison is London Stock exchange. The index is 6,275.00 with slight decline of -2.33%. Comparative analysis shows that the index is comparatively less than DOW and the NASDAQ. It is seen that all the indexes move simultaneously. It is seen that JPM experiences an overall rise until 7 October, then it faces a fall until 14 October after that it again faces a rise until 10 November the next fall ends in 24 November. When observing NASDAQ it falls between 4 November and 13 November and 18 to 29 September. S&P falls from 17 September to 28 September and from 29 October to 23 November. In addition, the Dow Jones index is negative from 17 September to 28 September and from 4 November to 19 November.