Securities Market

This project examines recent and ongoing misconduct in the financial sector and implications for corporate governance and accountability. The misconduct ranges from abusive mortgage trades and misreporting on derivatives losses to manipulation of commodity markets. Major corporations, such as JPMorgan Chase and Morgan Stanley, have paid billions of dollars to regulators in penalties. The research project reviews the events from the perspectives of corporate governance, specifically whether shareholders are penalized for wrongdoing of corporate managers, and how far the regulatory practice of making settlements with the companies promotes accountability and corporate governance. The penalties diminish shareholder wealth and the question is whether shareholders end up as “helpless victims.” The research herein has combined theoretical and empirical methods. The theory part of research includes discussion of various regulatory methods and their efficacy, the justification for the settlements concluded by the corporations with governments, grounds for proposed personal liability against executives, and possible class action lawsuits in the future. The empirical element consists of review of investigative reports, disclosures by the companies, and settlement orders made by regulatory agencies. This helps form an opinion on the culpability of executives and the related issue about whether the costs of misconduct in the form of penalties are passed on to shareholders.

Povezujući štednju i investicije finansijski sistem doprinosi ubrzanom privrednom rastu a time i rastu životnog standarda, odnosno blagostanju svih ljudi. To je ujedno i osnovni razlog zašto je ovaj udžbenik prvenstveno posvećen finansijskom sistemu i njegovim pojavnim oblicima sa kojima se svakodnevno susrećemo.

Neste artigo, procuro reunir informações úteis para acadêmicos e profissionais acerca das consequências jurídicas da oferta irregular de criptoativos e os critérios para averiguar quando os direitos por eles conferidos implicam a sua qualificação como valores mobiliários. Desse modo, empreendedores e seus assessores jurídicos poderão avaliar os riscos dos modelos de negócio pretendidos e adotar as precauções necessárias para evitar sua responsabilidade em processos administrativos sancionadores conduzidos pela Comissão de Valores Mobiliários (CVM).

A regulação tem sido apresentada como uma das facetas do enforcement protecção do investidor no mercado de valores mobiliários, por isso neste ensaio vamos de que modo a regulação pode funcionar como um mecanismo concreto de protecção do investidor, para o efeito vamos analisar as questões ligadas ao processo regulatório. Mas antes será necessário mergulhar na história para daí retira as premissas da regulação financeira; caracterizar o conceito de regulação para daí explorar os objectivos da regulação. Feito este caminho peripatético, olharemos para a realidade angolana para discutir sobre o papel do Estado na actual constituição angolana, enquanto ente regulador da economia. Depois nos debruçaremos sobre a construção da regulação no mercado de valores mobiliário e sobre o modelo de regulação adoptado pela Comissão do mercado de capitais.

One of the most viable derivatives in the securities market, Options, saw a revolutionary turn of fate for itself with the help of the apex court’s judgments such as Naresh K. Aggarwala and Bhagwati Developers on expanding the ambit of SCRA to unlisted public limited companies. Further, with SEBI’s investor-friendly approach in every sector of the securities market, the recent October notification by SEBI came as a boon for the investment agreements. It has somewhat freed the restrictive legal regime pertaining to the enforceability of ‘Options’ in securities and acts as a positive and liberal step by SEBI. It has also filled the void created by the decision in MCX Stock Exchange Limited case.

AbstractDo globalization and Europeanization lead to the deterritorialization of European mortgage markets? Neither economic globalization nor EU policies have resulted in one European mortgage market. The various European mortgage markets are still quite different from one another in many respects. In most countries national lenders continue to dominate the market even though regulation itself has been internationalized to some extent. Deterritorialization has been slow for various reasons: tax, law, cultural and structural differences play a part, but the limited market share of mortgage intermediaries and the unequal treatment of foreign mortgage lenders in some countries also form a barrier. Path-dependent trajectories are highly important, but can sometimes be bypassed by global processes or downplayed by the entry of foreign firms. The secondary mortgage market is increasingly becoming globalized, while most primary mortgage markets remain largely national. The financial crisis may temporarily slow down securitization, while simultaneously both decreasing and increasing the globalization of mortgage regulation, firms and markets.Do globalization and Europeanization lead to the deterritorialization of European mortgage markets? Neither economic globalization nor EU policies have resulted in one European mortgage market. The various European mortgage markets are still quite different from one another in many respects. In most countries national lenders continue to dominate the market even though regulation itself has been internationalized to some extent. Deterritorialization has been slow for various reasons: tax, law, cultural and structural differences play a part, but the limited market share of mortgage intermediaries and the unequal treatment of foreign mortgage lenders in some countries also form a barrier. Path-dependent trajectories are highly important, but can sometimes be bypassed by global processes or downplayed by the entry of foreign firms. The secondary mortgage market is increasingly becoming globalized, while most primary mortgage markets remain largely national. The financial crisis may temporarily slow down securitization, while simultaneously both decreasing and increasing the globalization of mortgage regulation, firms and markets.RésuméLa mondialisation et l'européanisation conduisent-elles à la déterritorialisation des marchés hypothécaires européens? Ni la mondialisation économique ni les politiques de l'UE n'ont produit un marché unique européen du crédit hypothécaire. Au sein de l'Europe, les marchés hypothécaires restent très différents à plusieurs titres. Dans la plupart des pays, les établissements de prêt nationaux dominent encore le marché, même si on a relativement internationalisé la réglementation. La déterritorialisation se fait lentement pour plusieurs raisons; fiscalité, législation, différences culturelles et structurelles pèsent, mais la part de marché restreinte qu'occupent les intermédiaires en prêts hypothécaires, ainsi que le traitement inégal réservé aux prêteurs étrangers dans certains pays, constituent également un obstacle. Les chemins de dépendance sont particulièrement importants, bien qu'ils puissent parfois être contournés par des processus mondialisés, ou être minimisés par l'accès de sociétés étrangères. En matière de crédit hypothécaire, le marché secondaire se mondialise de plus en plus, tandis que les marchés primaires demeurent en grande partie nationaux. La crise financière va peut-être ralentir temporairement la titrisation, tout en atténuant et renforçant parallèlement la mondialisation de la réglementation, des sociétés et des marchés du crédit hypothécaire.La mondialisation et l'européanisation conduisent-elles à la déterritorialisation des marchés hypothécaires européens? Ni la mondialisation économique ni les politiques de l'UE n'ont produit un marché unique européen du crédit hypothécaire. Au sein de l'Europe, les marchés hypothécaires restent très différents à plusieurs titres. Dans la plupart des pays, les établissements de prêt nationaux dominent encore le marché, même si on a relativement internationalisé la réglementation. La déterritorialisation se fait lentement pour plusieurs raisons; fiscalité, législation, différences culturelles et structurelles pèsent, mais la part de marché restreinte qu'occupent les intermédiaires en prêts hypothécaires, ainsi que le traitement inégal réservé aux prêteurs étrangers dans certains pays, constituent également un obstacle. Les chemins de dépendance sont particulièrement importants, bien qu'ils puissent parfois être contournés par des processus mondialisés, ou être minimisés par l'accès de sociétés étrangères. En matière de crédit hypothécaire, le marché secondaire se mondialise de plus en plus, tandis que les marchés primaires demeurent en grande partie nationaux. La crise financière va peut-être ralentir temporairement la titrisation, tout en atténuant et renforçant parallèlement la mondialisation de la réglementation, des sociétés et des marchés du crédit hypothécaire.

M&A là hoạt động kinh tế tăng trưởng mạnh từ lâu nay trên thế giới. Ở Việt Nam, hoạt động này bắt đầu chưa lâu song ngày càng sôi động và hứa hẹn một sự bùng nổ trong thời gian đến tuy rằng những hiểu biết hiện tại về nó còn rất hạn chế. Chính vì vậy, bài viết này nhằm giới thiệu hệ thống các vấn đề cơ bản liên quan quá trình M&A và phân tích thực tế ứng dụng hoạt động M&A ở Việt Nam. Một trong những vấn đề lý thuyết mấu chốt cần nắm vững khi tiến hành hoạt động M&A được đề cập đến là các yếu tố tạo nên giá trị tăng thêm sau M&A. Bài viết cũng phân tích một cách cơ bản những kết quả và hạn chế của hoạt động M&A cho đến nay cũng như những cơ hội và thách thức cho hoạt động M&A thời gian tới.

The existing research on the first merger waves in the United States, Britain, and to a lesser extent in Germany, has produced valuable information on the rise of the modern industrial enterprise. These studies reveal important similarities as well as a few significant differences in the nature of the economic development of these nations. A new merger series for Canadian manufacturing industry was generated to provide a further comparison. In addition, a large pool of information was gathered concerning the workings of promotional syndicates, corporate flotations, and secondary financial markets. This aggregate data, in conjunction with a case study of the most prominent Canadian promoter of the era and the companies he consolidated, is used to determine the relationship between security financing and the evolution of manufacturing industry in Canada. An explanation of the cause of the first Canadian merger wave, 1909-1912, is based on individual case evidence and the results of causality tests using aggregate data. The necessary pre-condition to a merger wave was the emergence of a broad market for Canadian industrial securities. Although high stock prices stimulated merger waves in Britain and the United States at the turn of the century, the first Canadian merger wave had to wait another decade until the expansion of the Canadian market and the tapping of the British market for Canadian "industrials" permitted large-scale flotations. The potential profits which were available through corporate reorganisation, rationalisation of manufacturing and distribution networks, and monopolisation, were reflected in the higher rates of return which British investors sought en masse in the new Canadian securities. This flood of British capital in turn accelerated the industrial transformation taking place in Canada and encouraged further mergers. High stock prices triggered the first merger movement as they had in Britain and the United States. Corporate financiers became merger promoters as they catapulted propositions into consolidations large enough to be listed on public stock exchanges and to be of interest to prospective investors. High-risk financial methods provided the incentive to financial intermediaries to broaden this market as quickly as possible and, therefore, to deliver the maximum amount of cash to the new industrial consolidations.

Durante los últimos años, la teoría financiera y económica se ha interesado en estudiar los factores que influencian la toma de decisiones y por qué, en muchas ocasiones, debido a los incentivos de los individuos no son óptimas. Este trabajo, desde la economía comportamental tiene como objetivo identificar, clasificar y analizar el riesgo conductual en el mercado de valores de Colombia, por medio de la revisión de las actas de terminación anticipada, expedidas a las personas naturales vinculadas durante el período 2010-2015. Los principales resultados indican que aproximadamente el 80% de las conductas se evidencian en exceder el mandato de los clientes, hacer uso indebido de sus recursos, omitir el deber de asesoría y obstruir la revelación de información a los clientes.

The European Commission stated to pursue a Capital Markets Union among its goals. Actually, already on the sixties, it was planned the development of a European capital market trying to identify obstacles to the process of financial integration. Although in a different economic and political context, the Segré Report set out to identify which were the shortcomings of the national capital markets for the effective functioning of the European economy as a whole. After having achieved a monetary and a banking Union, lacking the political one, the goal of a Capital Markets Union could bring with it not only opportunities but also limits to the potential benefits. The idea is to go back over the heritage of the regulation of the capital market in Italy to reflect on the principles and objectives that have identified the developmental ratio as a function of the European process of economic and financial integration. The aim is to foster discussion on the view of a European Capital Markets Union.

In this paper, the researcher would identify the challenges confronted in the intermediaries-driven market regime, especially in preventing intermediaries’ conflicts of interest vis-a-vis investors and issuer companies. In the era of closed markets, intermediaries were not common because buyers and sellers transacted in close proximity to one another and a “middleman” was not required. However, as financial markets expanded and matured, it was no longer possible for buyers and sellers to have direct dealing; thus, contemporary capital markets are substantially dependent on market intermediaries. To understand this dependence, to comprehend how market intermediaries are driving the market today, and to ascertain the regulatory contours of India’s securities market regulator in respect of intermediary governance, it is imperative to do an in-depth study on the subject matter.

Since 2012 securities regulators in Canada have been in the process of developing and implementing equity crowdfunding exemptions to the prospectus requirement to allow ordinary people to invest in private issuers. In this race to unlock more startup and growth capital, significant practical issues are beginning to emerge. This paper analyses one of the most significant issues for both equity crowdfunding portals and issuers: how will smaller issuers manage large shareholder volume and the consequences of separating capital and control? This paper analyses various legal mechanisms presently used by equity crowdfunding platforms in Europe to solve these issues in the context of existing and proposed exemptions in Canada. This paper also summarises transaction volumes and growth of equity crowdfunding in established markets such as the United Kingdom.

We show that negative monetary policy rates induce systemic banks to reach-for-yield. For identification, we exploit the introduction of negative deposit rates by the European Central Bank in June 2014 and a novel securities register for the 26 largest euro area banking groups. Banks with more customer deposits are negatively affected by negative rates, as they do not pass negative rates to retail customers, in turn investing more in securities, especially in those yielding higher returns. Effects are stronger for less capitalized banks, private sector (financial and non-financial) securities and dollar-denominated securities. Affected banks also take higher risk in loans.

This is an open access article under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

The CAPM model was developed to explain the differences in the risk premium across assets. According to the theory these differences are due to differences in the riskiness of the returns on the assets. The model states that the correct measure of the riskiness of an asset is its beta and that the risk premium per unit of riskiness is the same across all assets. Given the risk free rate and the beta of an asset, the CAPM predicts the expected risk premium for an asset. In this paper the empirical testing of CAPM has done to test whether or not the theories should be rejected and to provide information that can aid financial decisions

Key Words: CAPM, Securities, Return, Required Return, Beta, performance of IT, Pharmaceutical & Telecom Sector.

As financial markets become more sophisticated and complex, investors need financial intermediaries like banking institutions, insurance companies, mutual funds and housing finance companies etc. which provide professional expertise on various financial services. A mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debt instruments (such as debentures) and other securities. In India mutual funds are a popular investment avenue. In March 2015, Association of Mutual Funds in India (Amfi) data revealed that assets of the Indian mutual fund industry reached Rs 12 lakh crore. There are different types of mutual funds, suitable for investors of varying risk appetite. Therefore it is important for investors to know the pros and cons of the different types of mutual funds.
In this research we use PYTHON 3 to compare the portfolio risk and compare it with the Benchmark indices and also with each other of Large and MidCap Funds in India.
This study investigates the Alpha, Beta, Sharpe’s Ratio and Treynor’s Ratio to do a comparative analysis of the funds.
The study uses daily observation of NAV of the 27 Large & MidCap Funds from AMFI from January 1, 2019 to December 31, 2020.
The study concludes that an investor is required to make wise investment decisions by analysing the return and risk parameters of the mutual funds’ to achieve their investment objectives.

It is no gainsaying that the taking of advantage of information that the other party could not obtain, is as old as human nature;  admittedly, man is naturally structured to think of protecting his interest first. Thus, one may be right to assert that the problem of insiders abusing information that they obtain by virtue of the special relationship that they have with the company is not a new one.  Nonetheless, while some do not see any reason why insiders who deal in the market in the securities of the issuer with which they enjoy this privileged access to its information should not be held responsible, others hold the view that view that acquisition of superior information should not be discouraged, let alone be penalized. 

Consequently, the regulation of insider dealing has and will no doubt continue to throw up a host of issues. For one, the sophistication of the financial environment within which the law and regulatory mechanisms operate, compounds the practical and legal difficulties confronting those seeking to administer and apply the law.  It is against this backdrop that it becomes imperative to critically examine the concept of insider dealing under the Nigerian law; (y) the mischief it seeks to remedy; and (z) relevant lessons from other jurisdictions.

The market of capital in Bosnia and Herzegovina represents an insufficiently developed market where the supply and demand for financial instruments of long maturity date and securities are confronted. Having in mind the state organisation of Bosnia and Herzegovina, the competences in terms of control and supervision have been divided between the entities and Brčko District. Although the competences of institutions that perform the control and supervision rest on generally similar principles, irrational division of the market continues to exist. It is precisely this division of the market that has consequently produced its lack of integration. By way of legal analysis of the normative framework of one segment of the market of capital, which refers to performing control and supervision over the market of securities, the paper will indicate the pointlessness of the current method of regulating the control and supervision over the market of securities in Bosnia and Herzegovina.

The stock markets. Whether you invest or not, the workings of the stock market almost certainly touch your life. Either through your retirement fund, your mutual fund or just because you work for a place that invests (or is invested in)—the reach of the securities markets is expanding, like an ever growing tidal wave.

This book discusses what happens when that wave hits the shore. Specifically, this book argues that, given the mounting deluge from misplaced regulation, fast-paced technology, and dominant financial players, the current US regulatory structure is woefully inadequate to hold back the tide.

Using vivid imagery and plain language, Karen Kunz and Jena Martin take the problems involved in regulating the complex world of securities head on. Examining everything from the rise of technology and the role of hedge funds to our bloated agency system, Kunz and Martin argue that the current structure is doomed to fail and, when it does, the consequences will be disastrous.

Sending out a call to action, the authors also offer a bold vision for how to fix the mess we’ve made—not by tinkering around the edges—but instead by building a whole new structure, one that can withstand the next storm that is sure to come.

The purpose of this paper is to compare US and Italian financial crowdfunding regulation. Emphasis is given on the protection of crowdfunders. As a starting point, the paper outlines the theoretical framework underlying the classic retail investor protection argument. It then analyzes the recent doctrinal debate regarding the possible behavior of “crowds” in the context of financial crowdfunding, along with its regulatory implications. A comparison between US and Italian regulation of financial crowdfunding is then provived, showing how the theoretical dispute affected the policy choices carried out by regulators. In its last part, the paper challenges the simplistic policy assumptions underlying the regulations now in force, accordingly advising a different istitutional approach to financial crowdfunding.

Formation and future development of securities market in Republic of Armenia is one of the main components of market economy. For now securities market in Armenia is in a stage of development and the most important issue became attraction of available money resources /cash assets/. One of the basic characteristics resulted in legislation of RA is that the securities testifies to presence of property attitudes and, that the owner has the certain rights fixed in them. When securities is in circulation, the owner of the rights concedes to their new owner, and transferring the securities, the rights fixed in it and are transferred all to a duty. The securities market is the major component of the financial market of any country. The pace and extent of development indicate the degree of economic development of the country, as well as the whole society. This is also evidenced by published market indexes more or less developed countries, which in its content are characteristic of the economic development.

Abstract: This research study analyzes the basic concepts of behavior finance and its implied model of the economic agent which differs from the ‘homo economicus’ of traditional finance theory. Systematized are the more realistic assumptions regarding human decision making which stem from research in cognitive psychology and increasingly experimental economics. Defined consequences on capital markets and are presented policies for their mitigation.

Key words: behavioral finance, prospect theory, efficient market hypothesis, rationality, stock exchange.

Publication Name (in Bulgarian): Апостолов А. 2015, "КЛЮЧОВИ КОНЦЕПЦИИ В ТЕОРИЯТА НА ПОВЕДЕНЧЕСКИТЕ ФИНАНСИ", “Инвестиции в бъдещето - 2015”, с.: [148 -153], ISSN: 1314-3719

ORCID: https://orcid.org/0009-0006-8726-6291

This article includes personal commentary on the opportunities and challenges pertaining to Bitcoin and other cryptocurrencies (via email interview) after observing several Senate of Canada hearings on digital currencies in Winter 2015 in Ottawa, Ontario, Canada.

This study analyzes the effects of the global financial crisis of 2008 upon public and private deposit banks' securities portfolio in Turkey for the quarterly period between 2005 (Q1) and 2015 (Q4). Difference-inDifferences (DiD) method is employed to solve the research question of this paper, which is whether or not there exist a significant change in differences between Turkish public and private banks' ratio of securities (financial assets) to total assets during and after the crisis. This study concludes by suggesting that after the global financial crisis, securities to assets ratio of publicly owned deposit banks significantly differed from that of privately owned ones in Turkey. Compared to the private deposit banks, there has been a significant decrease in the specified ratio of public deposit banks. This can be explained by taking into account the very nature of public banks. The results of the econometric analyses indicate that after the crisis, unlike the private ...

Developed money market allows to its participants better chances for short-term investment, helps to development of competition in the market but it also serves as a mechanism for the implementation of monetary policy. Most importantly, a developed money market helps less expensive borrowing of money to its issuers because it increases the liquidity of the primary market for these securities. In this paper, we focused on the characteristics of the secondary market of treasury bills. We have tried, using experiences from developed markets, to offer solutions for developing secondary market of treasury bills in the Republika Srpska. In relation to that, we have analyzed trade with T-bills at the Banja Luka Stock Exchange. We have also presented that market makers can significantly contribute to the development of the secondary market of treasury bills.

Емпіричне значення механізму цивільно­правового регулювання випуску й обігу коносамента полягає в тому, що в процесі перевезення вантажу, його власник може розпоряджатися цим майном, шляхом відчуження коносамента іншій особі. Саме в такому разі розкривається правова сутність коносамента – як цінного паперу.
Особливість коносаменту як цінного паперу полягає в тому, що він, будучи об’єктом речового права, сам по собі не становить будь­якої цінності. Таку цінність мають саме ті майнові права, які засвідчені в ньому і які можуть бути реалізовані його володільцем шляхом пред’явлення коносамента.
Так, розглядаючи зміст коносамента, треба розрізняти поняття “право на коносамент ”, яке має речовий характер і об’єктом якого є, власне цей документ, і “право з коносамент а”, якому притаманний зобов’язальний характер і об’єктом якого є майно, зазначене в цьому цінному папері. Інакше кажучи, структуру правовідносин за коносаментом, з одного боку, складають відносини між вантажоперевізником і відправником вантажу. Це правовідносини мають зобов’язально­правовий характер, відповідно до яких пред’явлення коносамента тягне за собою обов’язок з зобов’язальної за коносаментом особи здійснити передачу майна, вказаного в ньому. З іншого боку, коносамент підтверджує правовідносини власності на певне майно. Ці відносини мають речовий характер.

Market efficiency of Indian stock market based on the daily return of NSE Nifty and BSE Sensex form 1 January 1994 to 31 December 2015 is tested by applying Unit root, Autocorrelation, Run test and Variance ratio methodologies for seven sub-periods based on the trends and patterns in the movements of Indian market. The unit root tests like ADF and PP proved that the Indian stock market is non-stationary and contains a unit root. The auto correlation results are also revealed high degree of dependence on previous prices, which means that previous prices are related with current prices. The strong autocorrelation behaviour of the variable leads to non stationarity situation in data series, which means that the stock market movements are not in predictable manner. The run test results also proved that there is no randomness in Indian stock market. The results from the sub periods for each test are also giving the results which support the whole study period results. It clearly proved real behaviour of Indian stock market. From the results, it is clear that the Indian stock market does not follow random walk and it is in inefficient in its weak form. KEY WORDS :-Market efficiency, Weak form, Dependency behaviour of Market, Independent Movements, Random Movements.

This paper will be examining significant macroeconomic developments that took place in the calendar year 2019. Such topics will include interest rates, inflation, the Federal Reserve's balance sheet, the brief repo market shock, and asset classes such as equities, bonds, cash, etc.