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Summary of Marc Levinson's Guide to Financial Markets
Summary of Marc Levinson's Guide to Financial Markets
Summary of Marc Levinson's Guide to Financial Markets
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Summary of Marc Levinson's Guide to Financial Markets

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#1 The Euro is slightly higher against the yen. The Dow Jones Industrial Average is off 18 points in active trading. A Chinese airline loses millions of dollars with derivatives. Following the Bank of England's decision to lower its base rate, monthly mortgage payments are set to fall.

#2 Financial markets have been around since the beginning of mankind. They have evolved over time, and today, they are handled computer to computer with minimal human intervention.

#3 Financial markets serve the same basic functions: price setting, asset valuation, arbitrage, raising capital, commercial transactions, investing, and risk management.

#4 The figure of $4. 5 trillion for 2011, which is the amount of money that was lent in that year, represents only a single year’s activity. If all financial activities were to be included, the total size of the markets would be much larger.

LanguageEnglish
PublisherIRB Media
Release dateMar 28, 2022
ISBN9781669375227
Summary of Marc Levinson's Guide to Financial Markets
Author

IRB Media

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    Summary of Marc Levinson's Guide to Financial Markets - IRB Media

    Insights on Marc Levinson's Guide to Financial Markets

    Contents

    Insights from Chapter 1

    Insights from Chapter 2

    Insights from Chapter 3

    Insights from Chapter 4

    Insights from Chapter 5

    Insights from Chapter 6

    Insights from Chapter 7

    Insights from Chapter 8

    Insights from Chapter 9

    Insights from Chapter 1

    #1

    The Euro is slightly higher against the yen. The Dow Jones Industrial Average is off 18 points in active trading. A Chinese airline loses millions of dollars with derivatives. Following the Bank of England's decision to lower its base rate, monthly mortgage payments are set to fall.

    #2

    Financial markets have been around since the beginning of mankind. They have evolved over time, and today, they are handled computer to computer with minimal human intervention.

    #3

    Financial markets serve the same basic functions: price setting, asset valuation, arbitrage, raising capital, commercial transactions, investing, and risk management.

    #4

    The figure of $4. 5 trillion for 2011, which is the amount of money that was lent in that year, represents only a single year’s activity. If all financial activities were to be included, the total size of the markets would be much larger.

    #5

    The growth of finance can be measured by the value of cross-border financing. Cross-border finance is not new, and has been growing since the 1990s. In 2013, the total stock of cross-border finance was more than $52 trillion.

    #6

    Financial markets grew rapidly during the 1990s. The expansion of financial-market activity was halted in 1998 in response to banking and exchange-rate crises in a number of countries.

    #7

    The 1990s saw a change in pension policies in many countries, as well as an increase in financial assets. Stock and bond market performance was good throughout the 1990s, and risk management became more widespread.

    #8

    The driving force behind financial markets is the desire of investors to earn a return on their assets. Investors can be divided into two categories: individual investors and institutional investors. Individual investors control a small proportion of financial assets, while institutional investors account for most of the trading in financial markets.

    #9

    The fastest-growing institutional investors are investment companies, which combine the investments of a number of individuals to achieve particular financial goals in an efficient way. Mutual funds and unit trusts are investment companies that accept an unlimited number of individual investments.

    #10

    Algorithmic trading, also known as high-frequency trading, has expanded dramatically in recent years as a result of increased computing power and the availability of low-cost, high-speed communications.

    #11

    Financial markets exist in every country. The more investors that are available in a given market, the more liquid it becomes. The more transparent, reliable, and secure the market is, the more people will trade there.

    #12

    The speed of change in the financial markets has been accelerating as market participants struggle to adjust to increased competition and constant innovation. Deregulation and liberalization have led to consolidation, and many investors take a global approach.

    #13

    The following chapters examine the most widely used financial instruments and discuss the way the markets for each type of instrument are organized. Chapter 2 establishes the background by explaining the currency markets, where exchange rates are determined.

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