INTRODUCTION Capital Market is a market in which securities are traded. Capital markets include the stock and bond markets. The different types of financial instruments are : Equity instruments Credit market instruments Insurance instruments Foreign exchange instruments Derivative instruments
Financial Innovation in Global Capital Market Sudden spurt in financial innovation seen in recent years. World financial markets are intertwined in their performances. It has led to the development of new financial centers like Singapore, Middle-East (Dubai), Hongkongetc.
Capital Market of USA It is considered as a very strong and developed capital market. It is the largest in the world. The list of stock exchanges in USA in given below: New York Stock Exchanges NASDAQ Philadelphia Boston Stock Exchanges American Stock Exchanges Chicago Stock Exchanges New York Board of Trade
1. Transacting futures and options orders for clients or for other firms within Barings organization. 2. Arbitraging price difference between Nikkei futures traded on the SIMEX and Japan’s Osaka’s exchange 3. Hedging
By end of 1992, A/C 88888 was under water by 2 Millions GBP
By end of 1993, A/C 88888 was 23 Million GBP negative
By 1995, A/C 88888 was 827 Million GBP which made a BIG HOLE in Balance Sheet of Barings Bank
Amaranth Hedge FundWhat happens when your Friendly Banker becomes - PREDATOR