Tag: Finance

Finance 

A Guide to Global Financial Market Interconnectedness

Denny Mack, , , 0 comment

Global markets have never been more interconnected due to globalization of commerce, cross-border access and financial trading. This interdependence makes small disruptions have greater repercussions across borders and can trigger risk events that lead to major financial crises. Understanding these links is integral to global management, and there are effective techniques available such as the D-Y methodology that allow managers to gauge interconnectivity. 1. Stock Markets Global stock markets have never been more interlinked due to globalization, cross-border commerce and easy trading access. Minor disruptions can quickly snowball into larger…

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Finance 

Market Volatility and Instability

Denny Mack, , , 0 comment

Market volatility refers to the speed and magnitude of price swings among stocks or indexes in response to economic activity both positive and negative, including globalization and any subsequent trade wars. Market volatility doesn’t automatically equate to risk for investors; rather, it can signal greater uncertainty among them. There are various strategies available to you that will allow you to manage market volatility and still achieve your financial goals. Economic Uncertainty Economic uncertainty refers to the range of potential outcomes for a country’s economy, which encompasses both known unknowns –…

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Finance 

The Impact of High-Frequency Trading on Financial Markets

Denny Mack, , 0 comment

High-frequency traders use complex algorithms and computerized trading to quickly react to market trends that emerge and dissipate within seconds, often employing fiber-optic cables as innovative technology to reduce latency. HFT provides many advantages to market liquidity. Studies have revealed that when fees are added to HFT trades, bid-ask spreads significantly reduce. Impact on Market Efficiency and Liquidity Market efficiency and liquidity are fundamental concepts in financial markets. Market efficiency refers to how closely prices reflect all available information while market inefficiency refers to errors that lead to mispricing. High-frequency…

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Finance 

Sustainable Investing – Balancing Profit and Impact

Denny Mack, , 0 comment

Sustainable investing refers to investments that balance financial returns with consideration of positive social and environmental impacts. Sustainable investments may utilize negative screening techniques or incorporate ESG factors into traditional financial analyses as well as shareholder engagement or thematic investing to achieve this end. Start by identifying your values and goals as well as your risk tolerance, then choose sustainable investments that meet those criteria. Identifying Your Values and Goals Consider your financial goals and the issues most important to you when developing a sustainable investment strategy. Evaluate your investment…

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