Blog 4

This weeks lecture consisted of international stock exchanges and stock market efficiency. New york,Tokyo and Japan are the three main players in the stock exchange because of the time difference, We get a 24 hour stock exchange. London is a world player and if theres mergers this can create MSW. In the news at the minute, There is speculation that there will be a German takeover of the New York stock exchange and if that happened there would be a massive ripple in the financial market.

The problem with the mergers is that it could lead to different rules and regulations, But the positive side is that more competition leads to stock trading being less profitable, So the answer is to get bigger and get rid of the competition to become a monopoly. More mergers may be on the way so they become more successful if they have the same idea to create MSW, 2 heads are better than one so to speak, It will create a group that will dominate european trading. Because of advances in global financial markets i.e, changes in technology it is easier to trade because more can take place now because of the speed of technology.

This has to be accessed and managed properly because of the risk factor, as this is the seed of destruction. So the question is- Is mergers of the stock market the way forward? = Yes if the risk is managed correctly and it increases MSW.

Blog 3

On the first lecture, We looked at an Empirical survey this indicated mission statements within countries. The outcome showed that their corporate social responsibility to MSW was a low percentage in valueing its importance. This is quite suprising, As MSW is the core value depending on what you do with the market share in the short term it can affect it in the long term. Welfare of employees is quite a good strategy to have as this creates productivity. People who love the company and who love working for them helps to create a good impression to outsiders and that can drive MSW. You can also link rewards to shareholder wealth improvements. If you have a goal,(goal congruence) which requires you to bring your different ideas together to please people, But Jenson 2010 quoted "Multiple objectives is no objective" i:e Trying to please everybody-Managers,employees and stakeholders. You have to concentrate on the most important one as you cannot please everybody and that is the shareholder to MSW. The problem is they all should want the same aim.

2nd blog

Another factor that the module is about is risk, I havent blogged for a few weeks to try and evaluate the lectures and do some reading. I now know that debt is cheaper than equity because of the risk factor, If you are working internationally you have to be sure of rules and regulations eg: how much tax you pay because it may increase the risk. When looking at ventures you need to ask yourself does it maximise shareholder wealth?, not just does it make a profit. If it maximises shareholder wealth and it gives you a positive MPV you should persue it no matter what the hurdle rate is as long as it is a positive. People will buy a riskier share because of a greater return. The stock market needs huge suppliers and a huge demand. To get the correct price the market has to be close to perfection, if imperfections are large the whole system is brought into question that the shares arent fair.By looking at graphs of reaction and efficiency in lecture,it shows to me that the market isnt fair but not by alot.

my first blog

This is first blog, been doing this module now for two weeks,im a bit concerned about the finance factor because all my class mates are AAT students, Whereas i only have done HND.I hope by the end of the module i fully understand what it is all about. The summary of the module is maximising shareholder wealth which i have grasped the idea of, all the questions accumilate to this answer. In the news yesterday it discussed that banks will try to increase loans to small businesses. I hope this will help new industrys grow and maximise new stakeholders wealth and not just be reliant on the banking industry in this country we need more industrys to help achieve more economics in this country.