Thursday, December 26, 2019
Study On Some Of The Kse Concepts Finance Essay - Free Essay Example
Sample details Pages: 10 Words: 3144 Downloads: 2 Date added: 2017/06/26 Category Business Essay Type Research paper Did you like this example? Ans. Trading in the future market offers an opportunity to the investor to invest in securities other than stocks. Investing in the futures market has a number of advantages. Don’t waste time! Our writers will create an original "Study On Some Of The Kse Concepts Finance Essay" essay for you Create order Firstly, instruments in the futures market are considered highly leveraged investments. The investor can earn alot from it by only investing a small amount. For instance, the investor will only have to pay 10% of the value of the contract and might earn much higher than it. In order to be profitable in the futures market, the investor must also be aware of the price fluctuations in the market; if he does so then he can earn ten times more than the amount invested by him. Another advantage of trading in the futures market is that it is a paper investment. Although it involves trading of different kinds of commodities because it is a paper investment so it does not face the problem of transferability. Instead of the commodities the contracts keep changing hands. The investor then does not need to worry about the storage of the commodities as well. High liquidity of future contracts is another benefit of trading in the futures market. This means that it is easy to buy and sell or order the contracts as they are being traded on a daily basis. There is a large number of buyers and sellers available for the contracts whatever the commodities may be. Some other advantages of investing in future contracts are that it enjoys fairer trading than stocks and shares. Because it is difficult to make predictions about the futures market it results in price manipulation in the stocks market. The commission charged on future contracts is also low than other markets. Depending on the level of service provided, the broker can earn as low as Rs.50 or as high as Rs.500 per transaction. The investor can money quickly in the futures market as the market is fast-moving than the cash market. But this can also be a disadvantage for the investor if he is not able to make the right prediction he can suffer quick losses as well. 2.     Discuss in detail the characteristics of three mutual funds of a single investment company (for example, AKD is an investment company and more than 4 mutual funds) Ans. AL-MEEZAN INVESTMENT MANGEMENT LIMITED: Joint venture of Meezan Bank and Pak Kuwait Investment Company (PKIC), Al-Meezan investment limited is registered with SECP and provides shariah compliant investment solutions. It majors in investment management i.e. floating and managing mutual funds and shariah based investment advisory. MEEZAN ISLAMIC INCOME FUND: It is the countrys first ever Shariah compliant Bomd fund. It invests in a diversified portfolio of Islamic investment instruments like Sukook bonds, Morabaha and Musharika instruments, certificates of Islamic investments etc and provides provides the investors capital gains as well as regular income. CHARACTERISTICS: Aimed at preserving capital through intelligent fund management Aims at providing, income consistently which is halal and strictly monitored and approved by Shariah Advisors Minimum intial investment of Rs. 5000 and Rs. 1000 subsequent investment amount at regular intervals Readily encas hable units throughout the year Offers tax benefit of Rs. 60,000 for salaried person and of Rs. 75,000 for non-salaried person on investments held for one year Lower risk and competitive return on the investment as a result of diversification of portfolio Till June 30, 2008, the fund size increased by 4889%, net assets stood at Rs. 5737m, and cumulative return was 14.06% MEEZAN CASH FUND: CHARACTERISTICS: Pakistans first ever Shariah compliant money market fund Rated AA(f) by JCR-VIS Provides maximum preservation of capital invested Can be easily cashed within 2 working days Involves no commission neither front-end nor back-end Risk of investing long-term fixed income instruments and stock market Ideal for short-term investments Flexible monthly, quarterly, or semi-annual based payments Healthy tax-free returns Provides a tax benefit of upto Rs. 60,000 in case of salaried person and Rs. 75,000 in case of non-salaried person MEEZAN ISLA MIC FUND: CHARCTERISTICS: Largest equity fund in the private sector as well as the largest Shariah compliant equity fund By investing in a large size of portfolio of securities it not only reduces the risk of price volatility but also the research and execution costs. The task of monitoring and evaluation of investment is handled by the fund mangers, who are trained investment professionals This fund also provides a tax benefit of Rs. 60,000 for salaried person or Rs. 75,000 for self-employed person on investments held for one year Provides an impressive return on the investment It is an affordable investment for small investors with a minimum investment of Rs. 5000 3.     Discuss how margin financing works at KSE? (the detailed method of where the funds are obtained from and how funds are then lent to investors ) Ans. Margin financing is a system to fund the investors, in which loan is extended to them uptil a certain limit. If the investors are short of money to purchase shares, they can get a loan for it from the stock broker. If the broker has that amount of amount he gives the loan to the investor at a specific interest rate. If not, then he acts as a middleman between the financer and the financee. The financee can be any financially sound company or an individual, who will lend the money at badla rate. In badla transactions the stock broker and the financial institution make an exchange of specific number of shares at a specific rate. But in whatever way the investor is financed, the loan is extended to him uptil a certain limit called margin. Margin specifies the limit upto which the investor can borrow funds. MARGIN = EQUITY / TOTAL PURCHASE PRICE Previously, the leverage product being used in KSE was called CFS MK-II (Continuous Funding System Mark II) which has now been modi fied as named as Margin Funding. The difference between international and locally practiced margin financing is that in the international MF it does not involve any middlemen, instead the banks or lenders bear the whole risk. 4.  What is KMI index, how it is formed and why it was introduced? Ans. KMI-30 (Karachi Meezan Index) is the first Islamic index of Pakistan. It was formed by KSE (Karachi Stock Exchange) and Al-Meezan Investment Management Limited in September 2008 on the 1st of Ramazan. The reason for establishing an Islamic index in the country was to provide a suitable benchmark to the investors on their Shariah compliant investments. The KMI-30 index comprises of 30 shariah compliant companies included on the basis of free-float, which qualify the shariah screening criteria. It is a total return index which is maintained by KSE. While the Meezan company, contributes in the shariah expertise, screening, and guideline skills in the activities. The Shariah Board of Al-Meezan Investment Company is headed by the renowned scholar Justice (R) Mufti M. Taqi Usmani. The KMI index has been very successful and in the previous year, it gained top position in the world indices by delivering 107.4% dollar-based returns.  5.     What is KSE 100 index? Discuss what does increase of decrease in points mean? Ans. KSE-100 is a stock index which acts as a benchmark to compare price at the Karachi Stock Exchange over a period of time. It was established on Nov 1, 1991 and is the most generally accepted measure if the exchange. It comprises of 100 companies with the highest market capitalisation from each sector, in order to ensure maximum market representation. The index moves up or down with the increase or decrease in points. For example, if on one day the total market capitalization at the stock is 1056000 and we consider it equal to 1000 points. Then the base market capitalization would be 1056. The next day the market capitalization moves down to 1047000. It is calculated as, = 1000*MARKET CAPITALIZATION / BASE MARKET CAPITALIZATION So, = 1000*1047000/1056000 = 0.9915 = 991.478 This would mean that the index has fallen from 1000 to 991.478 points i.e. there is a decline of 8.52 points.  6.     Differentiate between KSE 100 index and KSE 30 index? Ans. On the 1st of September, 2006 KSE launched its stock index, the KSE-30 index. This stock index is based on the free-float of shares rather than only market capitalization. The free-float methodology means that it takes into account only the active shares of the stock exchange and not the outstanding shares. Therefore the index at any time reflects the free-float market value of the 30 companies. It provides a benchmark to the shareholders to compare the stock prices over a period of time. Being based on the free-float methodology it is a true representative of the market, unlike the KSE-100 index. The KSE-100 includes the 100 highest market capitalised companies, for this reason even a slightest movement in the price of a company can change the trend of the index. And secondly, the KSE-100 is a total return index which not adjusted for dividends, bonuses or rights but the KSE-30 is adjusted when the company announces to give a dividend.  7.     Summarize the listing rules of KSE which are necessary for a company to get listed on KSE. Ans. A company cannot trade its securities on KSE quotation board or futures counter unless it is listed on KSE. In order to get listed the company shall submit an application to KSE in the prescribed form accompanied with the prescribed fee. The decision about granting permission shall solely be taken by the BOD of KSE within 3 months. If the permission is refused then the company and SECP is informed within 2 weeks. The BOD may relax the regulations if 2/3rd of them are unanimous on it. In case the permission to a company is refused, the application fee shall be refunded within the prescribed time. While considering granting permission the BOD will also take into consideration the publics interest in the company. The company shall be required to provide KSE any additional information, document or declarations as demanded by KSE. If a company does not do so, it shall be refused permission and it can then apply again for permission after 6 months of the refusal. The company permitt ed shall then offer 50% of its capital to public in case its capital is upto Rs.500m and more than 25% or Rs.250m if the capital is beyond Rs.500m. The BOD may relax these requirements depending upon the circumstances. Only those companies shall be eligible for being listed which are: Public companies or enacted companies Have a minimum paid-up capital of Rs.200m Its public offerings has been subscribed by at least 500 applicants The companies shall then submit the prospectus to KSE for clearance before an application for its approval is sent to SECP. After approval KSE shall published the prospectus along with the Performa in newspapers at Lahore, Karachi, Islamabad or at any other any place and the company shall provide KSE with the copies of these documents. After this, the company shall: Accept the application of allotment of shares through the bank Issue the shares of certificates in marketable lots Inform KSE about receiving subscription within 5 working d ays of closure of subscription list Dispatch all shares of certificates within 30 days of closure of subscription list as issued in marketable lots The company shall pay minimum of 1% brokerage fee to KSE members within 30 days of closure of subscription list The signatures of the shareholders shall be verified within 48 hours of request On receiving the shares of transfer the company shall immediately issue receipts and shall not charge transfer fee The company shall keep KSE informed about any corporate decisions or dividends and bonuses and shall hold Annual General Meeting within 4 months of the closing of the financial year.  8.     Discuss theses terms of KSE: Odd-lot, defaulter counter, de-listed companies, provisionally listed companies, future market ODD LOT: In general, odd lot means to trade less than 100 securities in an exchange. At KSE, the investors are provided the facility of an automated market through which the investors can buy or sell securities in bundles less than the number of shares traded on average in the ready market. DEFAULTER COUNTER: Defaulter counter is a mechanism at KSE which shows the names of the companies which were previously listed but for some reason have failed to payout the liabilities and refund the shareholders. No trading takes place in the shares of such companies and in order to punish such companies, KSE throws them out in the defaulter counter, this act puts pressure on the companies to comply with the KSE Listing Regulations. According to these regulations, the money market shall put the company in the defaulter counter if, It has not declared any dividend to the shareholders for 5 consecutive years since the last date of declaration of dividends Has not paid listing fee c ontinuously since 2 years Is about to be liquidated Has not held Annual General Meeting continuously since 3 years Has not joined CDS system after CDC declared its securities to be eligible And has been quoted at a value below 50% of the face value since 3 years The companies that do not comply with these regulations are issued a show cause notice and given time to rectify the error or give reason for the default. DELISTED COMPANIES: Before the defaulter counter mechanism was launched at KSE, the listed companies that did not comply with the KSE Listing Regulations were matched with the regulations and if failed were quietly delisted from the exchange. It had little impact on the companies and the major loss was borne by the shareholders, because of the defaulter counter now the companies try to payout at least some dividend to the shareholders. PROVISIONALLY LISTED COMPANIES: Provisionally listed companies are those, whose shares not already officially li sted at KSE, but they make upto the specified amount of minimum public offering, these shares are traded at the provisionally listed counter. And after the dispatch process of the allotted shares is completed through the CDC, the provisional counter ends and the outstanding transactions are transferred to T+3 counter. On this counter the trading cost of securities is summed and the settlement is made on the third day. FUTURE MARKET: It is a market where future contracts i.e. derivative securities are traded. A contract is made to sell or purchase the securities at a specified price on some future date. The list of companies, to be traded, in the future market are refreshed after every six months under the criteria determined by SECP and the investors are informed in advance. 9.     Can a broker go bankrupt? How? Ans. Brokers are individuals or institutions who buy or sell the shares for the investors and in return charge a commission for the services provided. The commission charged can be high or low, depending on the level of services given. If an investor wants to purchase shares but does not have that amount of money, he can borrow it from the brokerage house. In case, the broker does not have that amount, he borrows money from other brokerage houses or, local or foreign investors. All this settlement takes place through NCCPL (National Clearing Company Pakistan Limited). The settlement process allows a maximum period of 3 days to the brokerage house. Sometimes it happens that the brokers are unable to, both, pay back the other brokerage house or to the financial institutions, in the settlement process and then they are declared bankrupt. The brokerage house has 3 days to make the payment, if still it is not able to do so, it is penalised first and after that it is declared bankrupt . This is the T+3 approach, which means that there are three more days for the payment of cash. 10.   Differentiate between CDC and NCCPL? Remember to give clear cut points of distinctions between the two companies; only discussing their functions will not serve the purpose.  Ans. There are 3 main players in the capital market of Pakistan i.e. stock exchanges, CDC and NCCPL. All the three participants are trying their best to bring efficiency in the capital market. For this reason they are coming up with innovations, CDC (Central Depository System) is one such system which performs the function of electronic book-entry of shares. It has facilitated, quickened and secured the process of settlement and delivery of shares. This system works under CDC (Central Depository Company), a separate legal entity which is responsible for maintaining and settling the shares of investors. Previously, the settlement and delivery of shares was done manually, it took 2-3 days in settlement after which the shares were mailed to the investor and were faced with the risk of being damaged, faked or duplicated. It was a slow process and was not secure but now it has been replaced by CDS through which the shares are transferred and settled electronically. The settlement proces s involves two steps, the borrower pays the cash and the seller delivers the securities. The first step of settlement of cash is performed by NCCPL (National Clearing Company Pakistan Limited), while the second step is performed by CDC. NCCPL maintains and settles the accounts of brokerage houses. Any exchange of cash between the brokerage houses is done through NCCPL. It has replaced the three individual clearing houses of stock exchanges and now all brokerage houses are registered with NCCPL. It is a separate legal entity which was formed to operate NCSS (National Clearing and Settlement System). It performs the clearing and settlement functions for brokerage houses and charges a commission from them. In the previous years when NCCPL was not formed, the clearing process took a long time and the probability of default of the brokerage houses was high. Whenever an investor of one brokerage house wants to buy or sell shares from an investor of another brokerage house. It takes place through both NCCPL and CDC. First of all the brokerage house makes cash transaction whose accounts are settled through NCCPL. The moment this is done, CDC is electronically informed through KATS (Karachi Automated Trading System) and the shares are settled and transferred in the investors account. Every investor is required to open an account with CDC, when an investor opens an account with the brokerage house; his sub-account is automatically opened with CDC. Through KATS CDC comes to know the origin of the transaction. 11.   Discuss at least 3 internet website from which you can obtain historical share prices data. Also tell the steps in which you can do so? Ans. Historical shares price data can be obtained from the following 3 websites: lahorestock.com/ cnbcpakistan.com globalfinancialdata.com. On the Lahore stock exchange website, scroll on the Market Information tab and click on Market History in the drop-down menu. It will open the webpage for historical share prices On the CNBC website, click on the Market Watch tab and then click on the History tab. On the Global Financial Data website, first of all you will need to log in. After that in the GFD filter search given on the left pane of the main page, enter the relevant information and it will provide you with historic share price information about any company listed in the KSE.
Wednesday, December 18, 2019
The Plaza ( Jose Marti Memorial ) - 1032 Words
Mostly known for its revolutionary heritage, Cuba is a large island found in the Caribbean and largely remains a mystery to most people who have never ventured into the country. If it has always been in your bucket list, you should know that you are in for a treat with its places that speak of a rich history, beauty, diversity and a range of activities such as fishing, diving and a an entertaining nightlife. Below are some of the places that will offer you the time of your life in the country. 1. Revolucion of the Plaza (Jose Marti Memorial),Havana The Revolucion of the Plaza should be the first stop for lovers or students of history interested in the country. In the middle, features a gray tower, 109 meters in height, a memorial of Jose Marti who was a Cuban national hero. To get a better view , you can ascend to the top of Havana city,which is the capital city of the country. Beneath the monument is the Memorial of Jose Marti that is the home of a museum on the hero. The square claims its place in history as the place where the country’s former president the late Fidel Castro delivered speeches to vast audiences that sometimes attracted large crowds of more than one million people. In 1998, the late pope John Paul II celebrated mass there. 2. Santa Clara Located in the Villa Clara province, Santa Clara boosts cultural interactions that are rich and that will amaze anybody who is there to have a good time. The fact that it is a university town making it vibrant as well.Show MoreRelated10 Best Places Visit Of Cuba1090 Words  | 5 Pagesthe country. 1. Plaza de la Revolucion (Jose Marti Memorial), Havana The Plaza de la Revolucion should be the first stop for lovers or students of history interested in the country. The center of the Plaza de la Revolucion features a gray tower, 109 meters in height, a memorial of Jose Marti who was a Cuban national hero. You can ascend the tower to get better view of the city of Havana, which is the capital city of the country. Beneath the monument is the Jose Marti Memorial that is the home
Monday, December 9, 2019
Total Quality Management Within an Organization Free Sample
Question: Discuss about the Total Qulity Management In Goodyear. Answer: Introduction Total quality management (TQM) ensures that every staff within an organization commits to sustaining high standard work taking into operational considerations of the organization. This report provides a brief of the total quality management in Goodyear Tyre highlighting successful application of TQM within the company. Problems within the organization are also assessed evaluating TQM strategies to mitigate them. Finally, the report provides recommendations to sustain TQM that will help the company to maximize profit. Total quality management in Goodyear Tyre Total quality management in Goodyear Tyre has enabled the organization to improve approximately 12% advancing to reduction in energy rates by 15% in upcoming 5 years. Advanced global data management system has been incorporated alongside TQM to track water and energy usage in real time (Goodyear.com 2017). Figure 1: Global energy use (Source: Goodyear.com 2017) Figure 2: Global water use (Source: Goodyear.com 2017) Figure 3: Global GHG emissions (Source: Goodyear.com 2017) Incorporating energy efficient and eco friendly programs, Goodyear Tyre has successfully increased its revenue to US$ 18.138 billion since 2014. Figure 4: TQM factors (Source: Influenced by the idea of Shah 2013) Continuous improvement Improvement of each area of Goodyear Tyre is highlighted by increased non-tire products, which includes industrial hose, conveyor belts, airsprings, power transmission, medical application synthetic rubbers etc. that helped the company to excel in competitive market. Employees of According to Ross (1999), Goodyear Tyre carry a mission statement of credit-card size that focuses in improvement of services and products for meeting customer needs. Investors and employees through this mission statement enabled the business to sustain prosperity in automotive and commercial products. Customer focus Goodyear designs its tyres according to customer needs. Goodyear Eagle 360 is designed for ensuring safety and enhanced driving experience for cars and its intelliGrip design provides added traction on road to prevent skidding during rainy season. Pricing of these tyres are also economical keeping in mind budget of customers (Oakland, 2014). Prevention Dale (2015) stated that Goodyear focuses on preventing poor quality products rather eliminating defects. Due to enhanced checking and quality control team, Goodyear has increased its logistics, research and development along with procurement process aligning with objectives to provide defect free products. Universal responsibility Goodyear Tyre faced a serious issue in revenue and suffered loss during 2010s. However, TQM enabled the firm to adopt a policy that resulted to maximize profit. Oakland (2014) commented that the manufacturing units of tyre were based in USA with high labor cost. Goodyear relocated its manufacturing units overseas to countries having low labor and manufacturing cost. Thus, it saved cost of manufacturing and invested the money in development of business. Goodyear Tyre transferred approximately 50% of its global capacity to countries having low cost by 2012 (Goodyear.com 2017). Conclusion TQM enabled Goodyear Tyre to overcome challenges of globalization and develop its progress through continuous growth that enabled the organization to provide customer satisfaction. Preventing poor quality products through thorough inspection besides the strategy to outsource its manufacturing units highlights the TQM competency of Goodyear Tyre. Recommendations Figure 5: Recommendations (Source: Created by the author) Track TQM records It is recommended to Goodyear Tyre to track TQM records of responsiveness to environment applied by TQM to ease its implementation. Management audits should be carried out precisely and accurately to create a database from where important information can be pooled during need. Employee motivation Employees should be motivated by HR and relevant managers on a regular basis to enhance innovation within the organization. References Dale, B., 2015.Total quality management. John Wiley Sons, Ltd. Goodyear.com, 2017, Goodyear Tyre [online], Available at: https://www.goodyear.com/en-US/international?expand=in [Accessed 26 Mar 2017] Oakland, J.S., 2014.Total quality management and operational excellence: text with cases. Routledge. Ross, J.E. and Perry, S., 1999.Total quality management: Text, cases, and readings. CRC Press. Shah, M.J., 2013. Globalisation impact of total quality management (TQM) staretgy in the Indian banking sector, International Journal of Transformations in Business Management, 3(4), pp. 1-5
Monday, December 2, 2019
Mean Ladies Transgendered Villains in Disney Films Essay Example
Mean Ladies: Transgendered Villains in Disney Films Essay The roles of men and women differentiate in societies. Men are often known for their masculinity and strength, women for their fragile character and beauty. Likewise, in Disney movies, the image of men and females characters shows an enormous impact on audiences. In her â€Å" Mean Ladies†article, Amanda Putnam emphasizes how Disney movies affect viewers with an expression of gender roles in characters. As a matter of fact, Putnam brings an example of her daughters claimsaying: â€Å" I want to watch one without a mean lady.†Fairly, Disney movies are all highly captured, where takes the person to the world of dreams and imaginations, yet most scenarios are filled with evil women against other good.According to Putnam, Disney films are firmly hyper-heterosexual, where characters fall in love, get married and often live happily dancing and singing. Hence, there are many characters in Disney movies that portrayed with the distinct pattern of appearance and behavior. Furt hermore, Putnam makes an explicit claim that behind that happy heterosexism, lies more of a villains displaying transgendered attributes. The transgendered attributes in Disney show women with either high masculine qualities or with strange physical buildups. Conforming to Putnam’s article, many audiences who watch Disney movies are children, and that can set back them of how they capture gender roles or the appearance appreciation of one better than the other. Moreover, Putnam admits â€Å"the bounder-crossing of sexroles occurs in many Disney films, most notably in the Princess series.†Her claim is right to the point when we look closely at Disney movies with princesses. As an example of princesses who show great internal and external beauty Cinderella, Belle, Tiana, Snow White, etc. are always ahead in mind of each audience. Hence, as Putnam asserts the stepmother and stepsisters in Cinderella series, Ursula in The Little Mermaid, have a very abnormal internal We will write a custom essay sample on Mean Ladies: Transgendered Villains in Disney Films specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Mean Ladies: Transgendered Villains in Disney Films specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Mean Ladies: Transgendered Villains in Disney Films specifically for you FOR ONLY $16.38 $13.9/page Hire Writer
Subscribe to:
Posts (Atom)