The Concept of Market Integration

Financial markets are said to be integrated if assets of similar maturity give the same the risk– adjusted returns in various segments of the imagesmarkets. Financial markets all over the world have witnessed growing integration, within as well as across boundaries.

Financial market integration can take place horizontally and / or vertically. In the horizontal integration, inter-linkages occur among domestic financial market segments, while vertical integration occurs between domestic markets and international / regional financial markets.

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Market Integration

I wish all my readers a very Happy and Safe Holi !! Keep it dry !!images

Thought of sharing a small basic concept of Market integration .

Financial markets are said to be integrated if assets of similar maturity give the same the risk– adjusted returns in various segments of the markets. Financial markets all over the world have witnessed growing integration, within as well as across boundaries. Continue reading “Market Integration”

IPO’s WHAT TO READ IN AN OFFER DOCUMENT ??

Many of you have Burnt your fingers in the recent IPOs, financial expert came out with their own school of thoughts that the IPO was overpriced, company fundamentals were not sound, the management was weak and so on. Most of us did not take a pain to read a big, fat offer document which can be overwhelming, but we can have a birds eye view by focusing on some essential sections:-

1) RISK FACTORS: – 1st section in the offer document, In this section we must focus on the those risk that are specific to a company such as client concentration, legal disputes, heavy indebtedness, Continue reading “IPO’s WHAT TO READ IN AN OFFER DOCUMENT ??”

Derivatives Statements made and Translations

I am a big fan of Traders Guns and Money the book written by Satyajit Das, the definitions Knowns and Unknowns revealed by him is the classic work.  The reality is always to make sure that you have a sheat when the music in this game of musical chairs for high stakes stops ( referring to the examples for the  crisis happened in the past). As a result of it some interesting statements the management of the firms make but the intensity is something to thought about :-

Statement: As a Leading dealer with a global platform, we are the major player in the market.

  • Translation: We have spent a fortune to build this business and are now prepared to spend millions more subsidizing your requirements.

Statement: We have one of the most talented teams in this space.

  • Translation: Our staff are vastly overpaid and on huge guaranteed bonuses.

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