Accounting assignment on: Capital Market:

A capital market refers to a market which solely takes into consideration securities such as equity, debt, etc. It refers to a market where all the business houses, companies as well as the government can lift funds which are long term in nature i.e. more than a year.There are various financial regulating bodies, such as the UK’s FSA (Financial Services Authority) or the U.S.’s SEC (Securities and Exchange Commission), which helps to guarantee the investors that they are confined against scams, scandals, fraud, etc.

Capital markets plays a vital role in the global market. The capital market can be further divided into primary & secondary markets. All the business houses who want to issue new bonds are sold to buyers in the primary market. Whereas, on the other hand, the secondary markets takes into consideration the existing stocks, bonds, and are bought by the buyers or traders, typically over-the-counter or through any Securities Exchange.

The role of the capital markets can be seen through the efficient & effective mobilization of the finances of the firms, and grant a successful medium for outlay in the markets they supply.It plays a vital role in the acquisition of the investments with a aim to increase the nations elongated growth projections, & therefore, can operate as an important medium in changing the nation & act as a more well-organized, competitive, innovative souk surrounded all over the globe.

With increasing globalization, the role of capital market has also changed over the times. The major purpose of the capital market in a global environment can be listed as under Maximizing investment return, Deregulation of the market, Capital in the global market is increasing at an increasing speed.

The role of capital market can be seen under the following heads such as it helps the investors in the mobilization of the resources/funds, it also helps in the capital formation as more number of people or investors is pooling their resources in the global market, speed up growth & development, provision of investment Avenue & continuous advancements of funds.

Asset & Portfolio Management:

Asset & portfolio management refers to a term which deals into the financial markets. Both the terms mentioned above can be defined as procurement of funds & dividing it into various alternatives to play safe in the stock exchange. It refers to the fact that when an investor invests in a particular stock or a security, it would be good for him to acquire more & invests in varied security rather than relying on one single security.The Asset & Portfolio Management is made on a standard belief. According to () “Don’t put all your eggs in one basket.”. The same way the shareholders should be smart enough in recognizing as to where to invest & in how much quantity.

The major role or purpose of Asset & Portfolio Management id to optimize the asset portfolio returns of the investor.

There are various kinds of risk associated with asset allocation & portfolio management. One of the major risks involved is to manage the assets of each & every investor by separating definite proportion of their savings portfolio amongst the various souk & the main classes of the assets.

The role of asset & portfolio management can be seen by the kinds of risks that are being handled by the portfolio managers. Up gradation of the various groups of securities available to raise the income is accomplished by introducing a high proportion on the return on investments in the varied collection of securities available. Diversifying of the securities would also help the investors as well as allow a portfolio supervisor to put the securities under various heads thereby, safeguarding the interest of the investors which would lead to an increase its commission too.

Though, high amount of risk would be involved but, “Higher the Risk, Higher is the Return”.

International Corporate Finance:

International corporate finance deals with the various financial activities of international corporations or multinational companies. These activities include working capital management, inventory management, cash management, short term financing, and debtor’s management.

The activities of international corporate finance are discussed as follows:S

Inventory Management: Inventory management is implemented by the company for managing the inventory in order to continue the production without any interruption. For maximizing the cash flow, the company tries to minimize additional expenditures in reordering costs and raw materials.

Cash Management: Important corporate organizations receive cash management services from banks. The cash management services can be categorized into the following types:

• Account reconciliation services: For keeping a track of the cheques which have been cleared and which have not, the banks try to maintain a list of cleared cheques and uncleared cheques. This method is termed as positive pay.
• Advanced web services: International corporate finance companies receive a variety of online information services from a large number of banks.
• Armored car services: On behalf of big retail companies, the banks take the responsibility of collecting big amounts of cash.
• Automated clearing house: Companies make payments to its employees with the help of this electronic system.
• Balance reporting services: Various websites of the banks provide regular information to the company regarding the cash and account balance positions.
• Sweep accounts: With the help of sweep accounts, the extra amount in the company’s bank account is transferred to the money market mutual fund for a short time and again transferred back to the bank account the next day.
• Zero balance accounting: With the help of this accounting system, every department of a company is allotted a separate account and money collected by all the departments are channelized to the principal bank account.

Short term financing: Short term financing purposes are served by bank loans.

Debtors management: For attracting the customers, formulation of a suitable credit policy is necessary. The plan should be to keep the cash conversion cycle intact and increase the revenue and cash flow.

Financial risk management: Corporate risk management is a distinct feature of financial risk management. The devices implemented by financial risk management include the following:

• Futures: The futures are traded on a futures exchange and the futures contract is a form of standardized contract. It has been planned for buying or selling an underlying commodity on a particular date and time. The seller or buyer participating in the futures contract has to satisfy the contract terms.
• Options: The options contract is quite similar to the futures contract, but in case of options, the contract bearer carries the option for exercising the contract. Options can be categorized into two types of contracts- the call option and the put option. The trading of options is done through clearinghouses. The option buyer is supposed to take the long position, and on the other hand, the option seller is supposed to take the short position.Hedge funds: Hedge fund is a basic form of investment funds. A performance fee is charged by hedge funds. Hedge funds are not similar to pension funds, mutual funds, or insurance companies. Hedge funds operate in the field of the swaps, futures, and derivative markets.

Investment banking: Another form of international corporate finance is investment banking. On behalf of the large financial institutions, the investment bank issues and sells securities in the primary market. The capital raising is done by them with the help of equity and debt instruments.

Private equity: Any type of equity investment the trading of which cannot be done in the public markets is known as private equity. The private equity investment can be categorized into the following types:

• Leveraged buyout: When a financial sponsor holds the majority of a company’s equity with the help of debt, it is known as leveraged buyout.
• Growth capital: Growth capital funds are borrowed for a wide variety of corporate needs.
• Angel investing: This investment method is sometimes used in place of ownership equity.
• Mezzanine capital: This term is broadly used for covering subordinated, unsecured, high yield, and preferred stock.
• Venture capital: The venture capital is implemented in case of new and emerging businesses, and it is a form of private equity capital

Compliance & regulation:

Normally, the term compliance refers to abiding to a law or a regulation. For example, conforming to certain specified laws, regulation, policy. Thus, compliance & regulation can be discussed as the objective which the business houses, organizations, enterprises or the agencies have in their firm to make sure that the people in the organization are well versed with the rules & regulations laid down by the top officials & are to be followed by each and every individual working for the organization.

There are various types of rules & regulations laid down by each department. The ISO i.e. International Organization of Standardization has laid down various rules & regulations with respect to International Electrotechnical Commission. All the firms operating in the commercial or the industrial sector abroad are to abide by the rules.

The major role of these rules & regulations are to increase transparency, a set format of the rules would help all the individuals to have a consolidated format wherein the people would be required to work. These regulations are used in order to avoid unnecessary duplication of effort and activity from resources.Compliance demands in the superannuation industry continue to increase due to the new licensing regime implemented by APRA. The new licensing regime requires trustees of superannuation funds to demonstrate to APRA that they have adequate resources (human, technology and financial), risk management systems and appropriate skills and expertise to manage the superannuation fund. The licensing regime has lifted the bar for superannuation trustees with a significant number of small to medium size superannuation funds exiting the Industry due to the increasing risk and compliance demands.

If you want Accounting management Assignment Help study samples to help you write professional custom essay’s and essay writing help.

Receive assured help from our talented and expert writers! Did you buy assignment and assignment writing services from our experts in a very affordable price.

To get more information, please contact us or visit www.myassignmenthelp.Com