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#Financial Markets
dayofbanks · 5 months
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Regulatory Environment of Financial Institutions.
Financial regulations are laws and rules that govern financial institutions. Regulations of financial institutions focus on providing stability to the financial system, fair competition, consumer protection, and prevention and reduction of financial crimes. By the mid-1970s, the global financial system witnessed market-oriented reforms that led to liberalization in the financial system, such as the reduction of interest rate controls, removal of investment restrictions on financial institutions and a line of business restrictions, and control on international capital movements. The modern trend observed is that financial sector regulation is moving toward a greater cross-sector integration of financial supervision. In 1998, the adoption of the Basel Accord, which required international banks to attain an 8% capital adequacy ratio was a major significant milestone in banking regulations. The collapse of the global financial system that led to the global crisis can be attributed to the systemic failure of financial regulation. Basel I defined bank capital and bank capital ratio based on two-tier systems. The Basel II framework consisted of Part 1, the scope of application and three pillars, the first one being minimum capital requirements, the second one a supervisory review process, and the third pillar is market discipline. The Basel III framework prepared new capital and liquidity requirements for banks.
Learn more about Regulatory Environment of Financial Institutions related to the publication - Strategies of Banks and Other Financial Institutions: Theories and Cases.
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Holders of $17bn of Credit Suisse bonds wiped out under UBS takeover
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Holders of $17bn of Credit Suisse bonds will have their investment wiped out following the bank’s takeover by UBS, in a surprise move that is expected to cause ructions in European debt markets when they open on Monday.
As part of the historic deal between the banks, Swiss financial regulator Finma ordered that SFr16bn of Credit Suisse’s additional tier one (AT1) bonds, a relatively risky class of bank debt, will be written down to zero.
Credit Suisse said it was informed of the decision by the regulator as it thrashed out the final details of its SFr3bn takeover by UBS, which was announced on Sunday evening after several days of intense negotiations.
“The extraordinary government support will trigger a complete writedown of the nominal value of all AT1 shares of Credit Suisse in the amount of around SFr16bn, and thus an increase in core capital,” Finma said.
But several people involved in negotiating the deal said wiping out AT1 holders — a move that appeared to surprise markets — would have wider repercussions and was likely to lead to a sell-off of other bank debt.
Traders quoting prices on Credit Suisse’s AT1 bonds on Sunday afternoon had marked them up significantly after the Financial Times reported that UBS’s takeover was confirmed, in expectation that the deal would not result in losses for bondholders.
“What Finma has done breaking capital structure will have a long-term consequence for any Swiss financial debt,” said one Credit Suisse AT1 holder.
One banker said the decision could lead to a “nightmare” in European debt markets, particularly given bondholders were having heavier losses forced on them than shareholders in Credit Suisse.
While AT1s are typically owned by professional bond investors and hedge funds, they are also popular among retail and wealth management investors in Asia.
“The market is likely to be shocked by such a blatant inversion of the hierarchy of creditors and by the decision to sweeten an equity deal at the expense of bondholders,” said Jérôme Legras, head of research at Axiom Alternative Investments.
AT1s were introduced as part of the post-global financial crisis regulatory reforms that pushed banks to increase their capital levels. AT1s are a form of contingent convertible security, or coco, which can be converted into equity if the bank runs into trouble.
If a bank’s capital ratio falls below a predefined threshold, AT1 investors can lose their principal or have their investment converted to equity.
As the riskiest form of bank debt in Europe, AT1s typically offer higher yields than safer bonds.
The Credit Suisse deal echoes the takeover of stricken Spanish lender Banco Popular in 2017, where the bank’s AT1 bonds were wiped out in the first example of the value of the hybrid asset class collapsing in the rescue of a European bank.
The takeover by Santander had been orchestrated by the European Central Bank’s oversight unit, the Single Resolution Body, after the ECB deemed the bank was “failing or likely to fail”.
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fin-markets · 1 year
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What are Bollinger Bands?
A series of trendlines serve as the definition of a Bollinger Band®, a technical analysis tool. They are represented as two standard deviations away from a simple moving average (SMA) of a security's price, both favorably and negatively, and can be customized to the user's preferences.
Technical trader John Bollinger created Bollinger Bands®, which are intended to increase the likelihood that investors will recognise when an asset is oversold or overbought.
Computing the security's simple moving average (SMA), often using a 20-day SMA, is the first step in computing Bollinger Bands®. The initial data point for a 20-day SMA is the average of the closing prices for the first 20 days. The following data point subtracts the price from the first data point, adds the price from day 21 and calculates the average, and so on. The security price's standard deviation will then be ascertained. The standard deviation calculates the deviation of a group of numbers from an average value.
Many traders hold the view that the market is more overbought or oversold the closer prices move to the upper band or the lower band, respectively. Since Bollinger Bands® are calibrated to use +/- two standard deviations around a SMA, we may anticipate that the observed price action will largely fall within these bands 95% of the time.
~Lakshya Kapoor
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sgrji · 8 months
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Mastering Intraday Stock Trading: Strategies, Tips, and Risks
Intraday stock trading, also known as day trading, is a high-stakes endeavor where traders buy and sell stocks within the same trading day. It’s a thrilling pursuit that requires skill, discipline, and a deep understanding of the market. In this article, we’ll explore the world of intraday stock trading, covering strategies, tips, and the inherent risks involved.### Understanding Intraday…
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philearning · 9 months
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Exploring Different Investment Vehicles: Stocks, Bonds, Mutual Funds, and More
Navigate the various options available for those looking to invest
In this blog post, we will explore different investment vehicles, including stocks, bonds, mutual funds, and more, to help you gain a clearer understanding of their characteristics, benefits, and considerations.
Stocks
Bonds
Mutual Funds
Exchange-Traded Funds (ETFs)
Real Estate Investment Trusts (REITs)
Read the full blog here https://www.phindia.com/blogs/2023/08/10/exploring-different-investment-vehicles-stocks-bonds-mutual-funds-and-more/
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cebothelover · 2 years
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*capitalists are crying*
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taratarotgreene · 2 years
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Big Venus day, get lucky, Dancing with Mr. D.
Big Venus day, get lucky, Dancing with Mr. D.
March 4  MOON enters earthy practical Virgo.   Its VENUS Trine Jupiter- get lucky Hallelujah get happy  Buy a lottery ticket  Venus conjunct Uranus  that means Love, values, $, creativity, relationships, women, beauty and your arse as they say in the U.K.  or are your values  up your ass? your taste is in your ass? or you love weird or kinky sex or……… you fill in the blanxs. ARIES you can blast…
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prfrostbox · 2 years
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mariameljasmy · 2 years
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Union Coop is the first cooperative to reveal the date of listing its shares in the financial market,This comes within the strategy of the Capital Markets and Exchanges Development Committee in Dubai, which aims to double the value of the emirate's financial markets to 3 trillion dirhams during the next phase,that news always makes me a proud citizen👌🏻🇦🇪
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don-lichterman · 2 years
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Cosmetics giant Revlon files for bankruptcy | Business and Economy News
Cosmetics giant Revlon files for bankruptcy | Business and Economy News
Company lost shelf space in US stores to startups backed by celebrities, and has struggled with inflation and supply chain issues. Cosmetics maker Revlon Inc has filed for Chapter 11 bankruptcy protection after struggling to compete with online-focused upstart brands in recent years. On Wednesday the nail polish and lipstick maker owned by billionaire Ron Perelman listed assets and liabilities…
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“There's a perception that there are two sets of rules,” says Gurbir Grewal, head of the SEC's enforcement division. “We want everyday Americans to have confidence when they invest in the market. They should have confidence knowing that there's a dedicated group of professionals to deal with new threats, traditional frauds, making sure that their retirements are safe.”
Many Wall Street denizens don’t seem to grasp what’s afoot, even as Hwang’s treatment underscores the shift.
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signode-blog · 3 days
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Mastering the Triple Screen Trading Strategy: A Comprehensive Guide for Maximum Profits and Minimal Losses
Introduction Introduction: In the world of trading, where uncertainty reigns supreme, having a robust strategy is crucial for success. One such strategy that has stood the test of time is the Triple Screen Trading System developed by Dr. Alexander Elder. This innovative approach combines the power of multiple screens to filter out the noise of the market and identify high-probability trading…
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fin-markets · 2 years
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Mergers & Acquisitions (M&A)
I've mentioned M&As in my previous blogs and have discussed the role played by investment banks in this business endeavor.
Mergers and acquisitions (M&A) is a general term used to describe the consolidation of companies or assets through various types of financial transactions, including mergers, acquisitions, consolidations, tender offers,  purchase of assets, and management acquisitions.
The terms "mergers" and "acquisitions" are often used interchangeably, but they differ in meaning. In an acquisition, one company purchases another outright. A merger is the combination of two firms, which subsequently form a new legal entity under the banner of one corporate name. A purchase deal will also be called a merger when both CEOs agree that joining together is in the best interest of both of their companies. A company can be objectively valued by studying comparable companies in an industry and/or by using metrics. Unfriendly or hostile takeover deals, in which target companies do not wish to be purchased, are always regarded as acquisitions. A deal can be classified as a merger or an acquisition based on whether the acquisition is friendly or hostile and how it is announced. In other words, the difference lies in how the deal is communicated to the target company's board of directors, employees, and shareholders.
It is important to understand why corporates engage in these kind of endeavours. Here are some of the factors that make M&As attractive-
Larger Market Share- In a horizontal merger the resulting entity will attain a higher market share and will gain the power to influence prices. Vertical mergers also lead to higher market power, as the company will be more in control of its supply chain, thus avoiding external shocks in supply.
Higher Combined Worth- The common rationale for mergers and acquisitions (M&A) is to create synergies in which the combined company is worth more than the two companies individually. Synergies can be due to cost reduction or higher revenues. Cost synergies are created due to economies of scale, while revenue synergies are typically created by cross-selling, increasing market share, or higher prices. Of the two, cost synergies can be easily quantified and calculated.
Higher Growth- A company can gain by acquiring or merging with a company with the latest capabilities without having to take the risk of developing the same internally.
Diversification- Large corporates that function within only one industry often acquire companies that do not operate in their industry in order to diversify their income sources and hedging against any operating losses in their own industry.
~Lakshya Kapoor
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bettreworld · 4 days
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Stake to Shape the Future, Investing and the ESG Mandate (S01E12)
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unifiedinvestment · 6 days
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Business To Invest In Dubai
Economic growth and prosperity are increasingly dependent on infrastructure investment, which contributes to job creation and innovation and ensures that businesses will continue to need growth-related investments in the future. And Dubai is at the forefront at the moment. The 'city of Gold' is expanding and providing foreign investors with numerous business options. Read More:-  Business To Invest In Dubai
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aliishrat · 8 days
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The Mystery: Understanding Oscillators in Technical Analysis    
Subtitle - Insider Tips for Mastering Technical Analysis with Oscillators  
Subtitle - A Comprehensive Guide to Technical Analysis - A Full Details  
So, you have got the itch to turn out to be a pinnacle-notch dealer, huh? Well, you are successful! When it involves navigating the wild international of buying and selling, learning technical evaluation is your golden price tag. And wager what? Oscillators are like your secret guns on this thrilling adventure. In this manual, we are going to dive deep into magical gear like RSI, MACD, and Stochastic, uncovering their hidden gemstones and showing you how to use them like a seasoned pro. Ready to stage up your buying and selling recreation? Let's try this!
Technical evaluation has roots courting again to the 17th-century Dutch markets, however, it received prominence in the twentieth century with the improvement of charting techniques and signs.
Description:
Technical evaluation entails studying ancient market records, which include price and extent, to forecast destiny price movements. It specializes in styles, trends, and indicators to inform buying and selling decisions.
Importance:
Technical evaluation is vital for buyers to identify access and go-out factors, manage danger, and maximize earnings. It presents precious insights into market sentiment and allows buyers to make informed selections.
Advantages:
Some blessings of technical analysis include its simplicity, versatility throughout exceptional markets and timeframes, and its ability to complement other sorts of evaluation. It empowers traders with actionable records and complements their ability to navigate the complexities of the market.
2. Understanding Technical Analysis: Deciphering the Language of the Market         JOIN NOW
Before we delve into the nitty-gritty details of oscillators, let's lay down the foundation with a short crash route on technical analysis. Think of it as getting to know the language of the market fluently.
What is Technical Analysis?
At its coronary heart, technical evaluation is all approximately reading the records of market information – suppose price actions and buying and selling volumes – to expect in which prices would possibly head within the future. It's like being a detective, piecing together clues from the beyond to assume what's coming next.
Reading Between the Lines
Imagine the marketplace as a massive puzzle, with each piece representing a chunk of statistics. Technical analysts are the puzzle solvers, interpreting patterns, trends, and alerts hidden within the chaos. It's all about spotting opportunities and making clever decisions based totally on what the data is telling us.
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The Language of Patterns
Patterns are just like the vocabulary of technical analysis. They are available in all sizes and styles – from easy trends to complex formations – and each one tells a completely unique tale approximately the marketplace. By studying to understand these patterns, buyers can advantage of valuable insights into potential price actions.
Trendspotting
Trends are the spine of technical evaluation. They're just like the currents in the ocean, guiding the go with the flow of prices up or down. By identifying tendencies early on, investors can ride the wave and capitalize on profit opportunities.
Signals and Indicators
Think of indicators and signs as the site visitors' lighting fixtures of the marketplace. They provide treasured clues as to when to shop for, sell, or hold onto a function. From transferring averages to oscillators like RSI and MACD, those equipment assist traders navigate the twists and turns of the marketplace with self-belief.
Conclusion
So, there you have got it – a newbie's manual to the fascinating global of technical evaluation. By learning the art of analyzing the language of the marketplace, you'll be nicely geared up to make knowledgeable buying and selling selections and navigate the ever-converting landscape of finance like a pro. Ready to dive in? Let's get started out!
3. What are Oscillators? Unlocking the Secrets of Market Swings
Curious approximately those mysterious equipment called oscillators? Well, get prepared to find their secrets and techniques! Oscillators are like the weather forecasters of the marketplace, supporting us predict when conditions are ripe for an exchange.
Decoding Oscillators
Imagine oscillators as your personal marketplace radar, scanning for signs of trouble or possibility. They're a unique kind of technical indicator designed to identify when fees are stretched too skinny – both overbought or oversold – like a rubber band equipped to snap again into the region.
Boundaries and Ranges
Oscillators want to play within certain barriers, generally bouncing around between zero and 100 on their charts. It's like they may be dancing to the beat of the marketplace, transferring up and down in rhythm with charge adjustments. When they hit the intense ends of the variety, it's a signal that something massive is probably about to manifest.
Finding Balance
Think of oscillators because of the scales of justice for the market. They're continuously weighing the forces of buying and promoting, looking for that sensitive balance between bulls and bears. When one aspect receives too heavy, it's a clue that the tide is probably turning.
Reading the Signs
So, how do we recognize when an oscillator is attempting to tell us something? Look for the excessive stages – excessive or low – wherein the oscillator is pushing against the limits. It's like a warning signal flashing neon lights, alerting us to ability shifts inside the marketplace's mood.
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The Power of Reversals
When an oscillator hits the excessive stages, it's like a pressure valve releasing steam. It shows that the market is probably due for a reversal – an exchange in the path that could suggest large possibilities for savvy investors.
Conclusion
Oscillators can also appear like mysterious creatures before everything, but after you understand their language, they become effective allies in your buying and selling adventure. By keeping an eye on these handy signs, you will be ready to navigate the United States and downs of the market with confidence. Ready to dive in and start deciphering those market swings? Let's try this!
4 - Relative Strength Index (RSI): Your Secret Weapon for Spotting Market Extremes
Ready to free up the power of the Relative Strength Index, or RSI? Buckle up, due to the fact this little gem is one of the freshest tools inside the buying and selling international, and it is about to become your new first-rate friend.
The RSI Demystified
Think of the RSI as your non-public market speedometer, constantly measuring the speed of rate actions. It's like having a radar gun for the stock marketplace, telling you whether matters are moving too rapidly or too slowly.
Spotting Extremes
Ever heard the saying "What goes up must come down"? Well, the RSI is your manual to knowing while that's about to manifest. When the RSI shoots above 70, it is like a pink flag waving inside the wind – a sign that prices might be getting a piece too warm. On the flip aspect, when the RSI dips underneath 30, it's like a flashing neon sign pronouncing "opportunity ahead" – a signal that fees can be due for a leap.
Reading the Signals
So, how do you recognize whilst paying attention to the RSI? Look for those magic numbers – 70 and 30 – in which the RSI crosses the road into overbought or oversold territory. It's like having an integrated alarm device for your trades, supporting you to stay in advance of the game.
Speed and Change
The RSI isn't just about where charges are – it's also about how fast they're transferring. By measuring each speed and trade, the RSI offers you an entire picture of market momentum, helping you are making smarter, extra-informed buying and selling decisions.
Your Trading Sidekick
With the RSI by your facet, you will never be caught off defend through market extremes again. Whether you are a seasoned seasoned or simply starting out, this accessible tool will help you navigate the American and downs of the market with self-assurance. So, what are you expecting? Begin bridling the power of the RSI and take your trading game to a higher level!
5.  Mastering the Moving Average Convergence Divergence (MACD): Your Key to Riding Market Trends
Prepared to plunge into the field of the Moving Average Convergence Divergence or MACD? Prepare to be shocked, because this incredible asset is going to alter how you change.
Unveiling the MACD
Think of the MACD as your trusty compass within the tumultuous sea of the stock marketplace. It's like having a GPS for market tendencies, guiding you through the U.S.A.And downs readily.
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Two Lines, One Mission
The MACD is made from two strains – the MACD line and the signal line. Together, they shape a dynamic duo, constantly reading market actions and signaling capacity changes in direction.
Bullish vs. Bearish Signals
When the MACD line crosses above the sign line, it's like an inexperienced light signaling an uptrend beforehand. Bulls have a good time as prices climb better, developing opportunities for earnings. On the flip feature, while the MACD line crosses underneath the sign line, it resembles a mindfulness signal blazing red - a sign that a downtrend can be not too far off. Bears sharpen their claws as costs dip decrease, ready to pounce on capacity opportunities.
Riding the Trend Waves
With the MACD as your guide, you will be using the waves of marketplace traits like a pro. Whether it's a bullish flood or a negative retreat, you will be equipped to gain by potential outcomes and explore the exciting bends in the road of the market with confidence.
Your Trading Navigator/Your Exchanging Pilot
All in all, what are you looking for? Now is the ideal time to saddle the strength of the MACD and take your trading game to a higher level. With its potential to become aware of trends and sign capability modifications en route, this versatile tool turns into your mystery weapon for fulfillment inside the international of buying and selling. Let's embark on this journey collectively and liberate the total capability of the MACD!
6. Uncovering the Stochastic Oscillator: Your Vital aspect for Riding Business sector Energy           JOIN NOW
Is it safe to say that you are prepared to jump into the intriguing worldwide of the Stochastic Oscillator? Lock in, because of the reality this viable marker is going to arise as your new pleasant buddy inside the worldwide of exchanging.
Understanding the Stochastic Oscillator/Figuring out the Stochastic Oscillator
Consider the Stochastic Oscillator your energy finder, ceaselessly checking the market for signs and side effects of solidarity or point of concern. It's like having an integrated radar system, supporting you navigate the highs and lows of marketplace momentum without problems.
The %K and %D Lines
The Stochastic Oscillator is produced using two strains - the %K line and the %D line. Together, they shape a unique pair, providing prized bits of knowledge into commercial center elements and capacity shifts in force.
Spotting Overbought and Oversold Conditions
Like the RSI, the Stochastic Oscillator permits overbought and oversold conditions in the commercial center. When readings climb above eighty, it's like a caution sign flashing red – a signal that charges can be overheated and due for a pullback. Conversely, when readings drop under 20, it is like a green light signaling capacity buying opportunities beforehand.
Riding the Momentum Waves/Riding the Force Waves
With the Stochastic Oscillator by your feature, you'll ride the rushes of market forces like an ace. Whether it is a flood in purchasing pressure or a plunge in selling pressure, you'll be equipped to gain conceivable outcomes and settle on informed exchanging decisions.
Your Momentum Navigator/Your Energy Pilot
Anyway, what are you expecting? Now is the right time to tackle the strength of the Stochastic Oscillator and take your trading game to the ensuing level. With its capacity to recognize energy moves and see overbought or oversold circumstances, this adaptable gadget transforms into your unmistakable advantage for satisfaction inside the quick-paced universe of trading. How about we leave this experience altogether and deliver the general limit of the Stochastic Oscillator?
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7. Mastering Oscillators: Tips for Trading Success
So, you have got your fingers on some effective oscillators – now what? It's time to discover ways to wield this equipment like a seasoned and grow to be a master trader. Here are a few basic yet powerful clues to assist you with freeing the general capacity of oscillators and taking your exchanging game higher than ever.
1.  Practice Makes Perfect/Careful discipline brings about promising results
Just like learning any skill, becoming gifted in technical analysis and oscillators calls for practice – and lots of it! Set aside time every day to research charts, tweak settings, and have a look at how oscillators behave in one-of-a-kind marketplace situations. The more you practice, the more intuitive your buying and selling decisions become.
2. Combine and Conquer
Oscillators are effective on their own, but they are even stronger whilst mixed with different technical indicators. Experiment with pairing oscillators with shifting averages, trendlines, and extent evaluation to create a comprehensive trading strategy. Look for confluence among signs to grow the reliability of your buying and selling alerts and enhance your success fee.
3. Discipline is Key
One of the most important pitfalls for investors is letting feelings dictate their selections. Stay disciplined and persist with your buying and selling plan, following your indicators religiously. Avoid the temptation to deviate out of your approach primarily based on fear or greed. Remember, the indicators are there to guide your decisions – consider them and live the course.
4. Never Stop Learning
The economic markets are continuously evolving, so it is important to stay up to date with the brand new traits and trends in technical analysis. Make it an addiction to attend seminars, study books, and follow official trading blogs to increase your understanding and stay in advance of the curve. The extra you analyze, the higher prepared you'll be to navigate the ever-changing panorama of the market.
With those simple but effective recommendations, you will be well for your manner of getting to know oscillators and becoming a successful trader. So, what are you waiting for? Start imposing those techniques nowadays and watch your trading prowess leap!
Conclusion
In the end, the journey to becoming a remarkable trader is simply no walk in the park. It calls for willpower, perseverance, and deep information on technical evaluation and oscillators. But worry no longer, for with this gear in your arsenal, you can tip the scales of achievement for your preference.
Always do not forget that buying and selling isn't always just about crunching numbers; it is also approximately gaining knowledge of the psychological thing of the sport. Stay disciplined in your approach, keep your attention sharp, and in no way underestimate the energy of non-stop gaining knowledge.
So, as you embark on your trading journey, may additionally your charts be clean, your signals be sturdy, and your profits be abundant. Here's to glad trading and to the exciting adventures that lie ahead in the international of finance!
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