Financial Markets & Investment Strategies
1. Introduction to Financial Markets Definition: Financial markets are systems that allow people to buy and sell financial instruments such as stocks, bonds, and derivatives. They are essential for mobilizing savings, facilitating investment, and promoting economic growth. Importance for Business Students: Helps understand how businesses raise capital. Improves decision-making in investment and financial planning. Essential for careers in finance, banking, and entrepreneurship. 2. Stock Markets, Bond Markets & Alternative Investments A. Stock Markets A stock market enables investors to buy ownership in companies through shares. Formulae: Market Cap = Share Price × No. of Shares Dividend Yield = (Annual Dividend ÷ Share Price) × 100 P/E Ratio = Price per Share ÷ EPS Benefits for Business Students: Understanding equity financing. Learning how market valuation affects business reputation. Solved Question 1: A ...