The Role Of Financial Markets And Financial Institutions Finance Essay - Free Essay Example

Sample details Pages: 4 Words: 1212 Downloads: 5 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? What is financial market? In the economics, the financial market is a mechanism that allows the people to sell and buy the financial commodities, securities and other fungible items of value at a low transaction costs and at prices that reflect the efficient-market hypothesis. The financial markets can be divided into different subtypes, there are capital markets, stock markets, bond markets, commodity markets, money markets, derivatives markets, future markets, insurance markets and foreign exchange markets. Next, the capital markets consist of the primary markets and the secondary markets. The primary markets allow to buy or sold the newly formed securities. The secondary markets are allow the investors to sell their securities that they hold or buy the existing securities. In the financial market, the financial institution is an establishment that is focuses on dealing with the financial transactions, such as the loans, deposits and investments. The financial i nstitutions are including the credit unions, banks, building societies, stock brokerages and management firms. The function of the financial institutions, such as the futures, commodity markets, currency, stock exchanges and options exchanges are very important for the economy. Those institutions are involved in the providing and creating ownership for the financial claims. Next, those institutions are also responsible for maintaining the liquidity in the market and also managing the price change risks. Besides that, those institutions are also provide the investment opportunity and help the businesses to generate the funds for various purposes. Third, the most important of the financial service provided by financial institutions are acting as financial intermediaries. The financial intermediation are consists of the channeling fund between surplus and deficit agents. The financial intermediary is a financial institution that connects the deficit and surplus agents. For an exampl e of the financial intermediary is a bank that transform bank deposits into bank loans. There are several main function of the financial intermediaries, such as reduce the transaction cost, liquidity service (saving deposits or online banking to pay bills), risk sharing and asymmetric information (adverse selection, moral hazard) In a well-functioning economy, capital will flow efficiently from those who supply capital to those who demand it. The transfer of capital or fund can take place in the three different ways, there are direct transfers of money and securities, investment banking house and the financial intermediary. First, about the direct transfers of money and securities, this is occur when a business sells their bonds or stocks directly to the savers, in the process they are no have go through any type of the financial institution. For an example, Mr. Yong, the proprietor of a Apple Sdn Bhd and he decides to sell the appliances, he need to buy the initial inventory suc h as washers, TV sets and freezers and that costs about RM 200,000. But he has only RM 100,000 in savings, so he direct to borrow the money from the other individual and without going any bank or the other intermediary. For an another simple example, if your friend lends you the money to help fund a new business after you graduate, this would be a direct transfer of fund. The diagram below is show that the process of the direct transfers of money and securities. Savers Business Securities ( Stocks or Bonds ) Dollars Second, about the investment banking house, that is an organization that underwrites and distributes new investment securities and help the businesses obtain financing. The underwriter serves as a middleman and facilitates the issuance of securities. The process of the transfer in investment banking house is the company sells their bonds or stocks to the investment banking house and then the investment banking house sell to the savers the same securities. The savers money and the businesses securities are just passing through the investment, so it will have a risk because they may not be able to resell all the securities to the savers. The diagram below show that how the businesses sell their securities to the saver by go through the investment banking house. Investment Banking Houses Savers Business Securities Securities Dollars Dollars Third, the most important of the financial service provided by financial institutions are acting as financial intermediaries. The financial intermediation are consists of the channeling fund between surplus and deficit agents. The intermediary obtains funds from savers in exchange for their own securities and they use this money to buy and hold the businesses securities. For an example, a saver might deposit the dollars in a bank, after than the bank might lend the money to a small business as a mortgage loan. There are several main function of the financial intermediaries, such as reduce the transaction cost, liquidity service (saving deposits or online banking to pay bills), risk sharing and asymmetric information (adverse selection, moral hazard) In a well-functioning economy, capital will flow efficiently from those who supply capital to those who demand it. For an example about the transfer the securities between savers and business by go through the financial intermediary, if your family borrows the money to purchase a new car, you will probably raise the funds through a financial intermediary such as the local commercial bank or mortgage banker. The diagram below show that how the process of transfer the securities between savers and business by go through the financial intermediary. Savers Financial Intermediary Business Businesss Securities Businesss Securities Dollars Dollars Besides that, there are several classes of the financial intermediaries, such as Commercial Banks, Saving and Loan Associations (SLs), Mutual Savings Banks, Mutual Fund s, Pension Funds and Life Insurance Companies. Commercial bank are providing many services, such as insurance and the stock brokerage services. The commercial banks are very different if compare to the investment banks. The commercial banks is lend the money and the investment bank is help the company to increase their capital from other party. Second is the Savings and loan associations, they serve the commercial mortgage borrowers and the individual savers and they take fund from the small savers and lend the money to the borrowers, such as home buyer. Besides that, the SLs have more expertise in setting up loans, analyzing credit, and making collections. Third is the mutual savings banks, the mutual savings banks is similar to SLs, they operate primarily in northeastern states, lend mainly on a long-term basis to home buyers and consumers and accept savings primarily from individuals. Next is the credit unions, they are the cooperative associations whose members are supposed to h ave the common bond, such as being the employees in same firm. They are also provide the cheapest source of the funds to the individual borrowers. After that is pension funds, it is a retirement plans that are funded by the government agencies and the corporations for their administered and worked by the trust of the commercial banks or by the life insurance companies. About the life insurance companies, they are take the savings in form of annual premiums and they invest these funds in stocks, bonds, real estate, and the mortgages and finally make payments to the beneficiaries of the insured parties. Last is the mutual funds, they are the corporations that accept money from savers and then use these funds to buy stocks, long-term bonds, or short-term debt instruments issued by businesses or government units. Don’t waste time! Our writers will create an original "The Role Of Financial Markets And Financial Institutions Finance Essay" essay for you Create order

Cloning Humans Essay example - 769 Words

Cloning Humans Cloning is the process of duplicating a genetically identical organism through non-sexual means. Cloning can be done with plants animals including human, but it had been success with only plants and animals not human, since there are some argument going on about is it right or wrong to clone human (which is actually what this essay is all about). The first cloned mammal is a sheep named Dolly in 1997.The scientists had cloned other animals, such as cows and mice. There are some discussions about cloning; some people say cloning is dangerous. In my opinion, I think cloning is ok because it will make the huge leap of biological science knowledge and technology, it also probably†¦show more content†¦(This kind of cloning is called, Therapeutic cloning, and it is legal to do that in UK.) For example, we can clone our Liver or Kidney for transplants. Second reason is that we can improve the human race by cloning people those who are intelligent or athletic in an attempt to produce a super race even if its not the main aiming of the scientific mainstream though. This kind of cloning will actually produces the genetically identical organism from its parent; this kind of cloning is called Reproductive Cloning. I think this is good because we might be able to improve our immunity system in the future, so that our clones are immune to the dangerous diseases and probably all the sickness you can find and we can also avoid defective genes. The idea of why Im actually agreeing with this is because I think in the future we can have our brain transferred to another body which is our clone - exact copy (or close edited version of our clone) so that we can live as long as we want, and we can even have a rest (die) for long time (e.g. 100 years) and put our brain back into a clone and continue living. Or using this idea for someone who is dead with his brain kept safe and 100% perfect and their relative wants that person back for some reason, doctor can clone the body of the dead person using the genes from the corpse, soShow MoreRelatedThe Cloning Of Human Cloning1449 Words   |  6 Pagesto live up to 1,000 years old is alive today. However, many humans have a fear that this power of creation is fashioning an earthy trinity of man, science, and technology. Many of those who believe and fear this idea are apprehensive of various upcoming technological advances. After the first successful cloning experiment of a sheep, D olly, scientists have looked into human cloning and the benefits it would offer humanity. Cloning of humans would give parents who are infertile the possibility to haveRead MoreThe Cloning Of Human Cloning1332 Words   |  6 PagesCloning Science today is developing at warp speed. We have the potential to do many things, which include the cloning of actual humans and animals. The question no longer seems to be if we will clone humans, but when? Somewhere, sometime, a human clone will be born. This fact has exploded the world into a global debate. Will large armies of soldiers be raised to fight our wars? Or perhaps we will create a race of slaves to do our dirty work. Cloning is becoming more credible and concrete idea ratherRead MoreThe Cloning Of Human Cloning1006 Words   |  5 PagesTwins? Or is it clones? It has been known that identical twins are natural clones. The question is, what is cloning? Cloning is the process of making a genetically identical organism through the use of a DNA sample. There are three different types of artificial cloning: gene cloning, reproductive cloning and therapeutic cloning. Dolly, the sheep, was the first mammal to have been successfully cloned from an adult cell. 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But have people ever considered the consequences of human cloning if it becomes permitted? Human cloning might seem like something out of a science-fiction novel, but it may someday be possible with advances in science and technology. This will result in the creation of severalRead MoreThe Human Of Human Cloning2049 Words   |  9 PagesHuman Cloning Nowadays, in the twenty-first century, advances in medical sciences are being more and more common. As people become sicker, scientist try to find the way to solve that prob-lem. There are many series of medicaments, surgeries, and machines that have been develop to satisfy the necessities of modern society. However, all these techniques and options are not enough to cure many diseases or other types of problems such as amputations, transplants, and so on. As a result, scientists tryRead MoreThe Prospect Of Human Cloning1295 Words   |  6 Pages The prospect of human cloning was introduced in February 1997 when an embryologist was able to produce a lamb through the process of cloning. Once the lamb was cloned, the question of whether research for human cloning came into being. Society and researchers have feuded over whether human cloning should be banned or allowed for research and reproduction purposes. Each side has reasonable ideologies to continue their stance towards the oppo sing argument. Pro- cloners believe that the research developedRead MoreThe Ethics Of Human Cloning918 Words   |  4 Pages and human cloning. The idea of human cloning is most interesting because it is most mysterious and very complex. The topic of human cloning inclusively brings up issues also raised in the mentioned technologies. Human cloning is of two types: therapeutic and reproductive. Therapeutic cloning aims to produce tissues or organs from cells of a cloned embryo, whereas reproductive cloning aims to further develop the cloned embryo into a human being (Glannon 89). Motivations for human cloning are therapeuticRead MoreThe Problem Of Human Cloning1034 Words   |  5 PagesThroughout this paper, I will be talking about the topic of human cloning. However, there are many who have concluded to different definitions. To clarify, and use a specific definition, the American Medical Association defines the method of cloning as the production of genetically identical organisms. In summary, the process of cloning is producing a child, with completely identical genes, or parent. It is important to realize that cloning does not necessarily produce an exact replica of the individualRead MoreHuman Cloning Is Justified?1295 Words   |  6 PagesResearch Paper: Human Cloning is Justified Imagine a world where disease was non-existent, long term injuries could be healed in half the time, a world where our life spans could be greatened to an extent never seen before by man. This could be achieved with the cloning of humans, artificial cloning is the next evolutionary step for mankind.Although many would claim human cloning is unethical and dangerous, there are procedures at hand currently that are far from that. The act of human cloning allows for

Lou Gehrigs Disease Essay Research Paper Amyotrophic free essay sample

Lou Gehrigs Disease Essay, Research Paper Amyotrophic Lateral Sclerosis This is most normally known as Lou Gehrig s disease. Loe Gehrig was a celebrated baseball participant, and his instance made it a known disease that received national attending. A survey was done in 1991, and familial ALS was found on chromosome 21. Later finds pinpointed a mutant in the cistron that codes for an enzyme, superoxide dismutase ( SOD ) , as responsible for a per centum of familial instances. These defects do non look to be present in the more common nonfamilial, or sporadic, signifier of the disease. In add-on to familial factors, scientists have studied the buildup of the chemical glutamate that occurs in ALS patients. The organ system that is involved is the Nervous system. It affects it by bit by bit destructing the nervousnesss that controls the musculus. ALS develops when certain nervus cells in the encephalon and spinal cord interrupt down and decease. We will write a custom essay sample on Lou Gehrigs Disease Essay Research Paper Amyotrophic or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Then the motor nuerons makes the musculuss work by seting out urges so muscles halt working and waste off. As the nuero ns decease off they send irregular urges to the musculus. It foremost weakens the weaponries and the legs doing twenty-four hours to twenty-four hours activities more complicated with each passing twenty-four hours. One beginning said that it is inherited in 10 % of all instances. As for racial groups it seems to non be prejudice, it affects all races. Though gender wise it affects approximately twice every bit many males as females. It normally starts after the age of 50. Global distribution is equal throughout the universe though many instances may non be diagnosed in the third-world states. Treatment for this disease is minimum they try to command the symptoms and non bring around them. Baclofen or diazepam can be used to command the spasticity that interferes with day-to-day activities. Trihexyphenidyl or Elavil are used for get downing when it becomes hard. Physical therapy, rehabilitation, and usage of contraptions ( braces and wheelchairs ) to maximise musculus map and general wellness. The forecast of this disease is fatal. Death normally occurs within 2-10 old ages of the first symptoms. Though 20 % unrecorded longer than five old ages.

The Most Extreme Precursor To The Reform Movement Was A Man By Essays

The most extreme precursor to the Reform movement was a man by the name of Samuel Holdheim. He was born in 1806 in Kempo in the province of Posen. At a young age he studied at a yeshiva and received a Talmudic education. He began to study German and secular subjects after his marriage to a woman with a modern education. After their divorce several years later, he began studying at the University of Prague and Berlin and received a doctorate from the University of Leipzig. Following service in Frankfurt -Am-Oder he became a Landesrabbiner or chief Rabbi of Mecklenberg-Schewerin. In the year 1847 he became the rabbinate of a reform congregation in Berlin . At this point he already disapproved of most liberal Rabbis and came to be known as the most exemplar of reform Rabbis in all of Europe ( 241) The question comes to mind as to what exactly triggered this different belief in Judaism which differed significantly from previous tenents. It started during the time of the French revolution, a time when European Jews were (for the first time) recognized as citizens of the countries in which they lived in. Ghettos were being abolished, special badges were no longer required and Jews could dress the way they wanted, settle were they pleased and work the occupations they desired. Many Jews settled outside of Jewish districts, and began to live like their neighbors and speak the language of the land. They went to public schools and began to neglect Jewish Studies and forget about he Shulchan Aruch. In 1815, after Napoleon's defeat, Jews lost the rights of citizenship in many countries. Many Jews converted to Christianity in order to retain those rights. Many thoughtful Jews were concerned about this. They realized that many of these changes took place not because of a dislike for Judaism, but in order to obtain better treatment. Many rabbis believed that the way to address this was to force Jews to give up public schools and universities. This didn't work. Rabbis suggested that observance might have to be changed in order to appeal to the Jew living the modern world. They realized that every now and then old practices and new ones were introduced, resulting in a different lifestyle then 4000 or even 2000 years previously. They fathomed that these changes often made life easier for the Jew. They concluded that in order to make Judaism attractive to all Jews this change had to continue. A group of Rabbis assembled in Germany, and changes began, thus developed the start of Reform Judaism. Holdheim a reform Rabbi himself felt that the Jews living during his time period should change the laws given to them at Mt. Sinai and the halacha that the Talmud and Mishna state. Holdheim believed that the laws of the Torah and the Talmud that were in effect when the Jews had their own country and government have lost their legitimacy. Judaism now had to be in accord with both the letter and the spirit of laws of the nations they were living among. Even the laws of the Torah whose source was God had to be regarded as valid for certain times and places as he said " with the change of the circumstances and conditions of life for which God once gave those laws , the laws themselves cease to be operative, that they shall be observed no longer because they no longer can be observed". Thus , Holdheim said that the biblical and Talmudic laws concerning marriage, divorce and personal status are no longer relevant and the Jews in these cases should be ruled by the state government (Sasson 835). He concluded that laws between man and man should be left to the rule of the state they lived in but questions of prayer and religious institutions should be left to the Rabbis because prayer was the most important part of religious life. Holdheim denied the authority of the Talmudic dicta, the oral law. He says that it was written by the hand of man but was divinely inspired. His conclusion was that Jewish life should be based on spiritual and ethical guidance of the Torah. Even though he didn't reject the Talmud and Mishna one-hundred percent for him they were no longer used for Jewish law but storehouses of wisdom and ethics (Gay 155). Illustrations of commandments that he rejected during this time period were the celebration of Shabbat on Saturday. The reason for this was there was normal school on Saturdays and the Jews felt school was more important than observing the word of