Financial Markets and the Risks They Run :: Financial Markets Institutions Finances Essays

Financial Markets and the Risks They Run Outline the differences between a broker and a dealer (or marketmaker) in financial markets, including discussions of how they are remunerated and what risks they run. A financial market consists of diverse financial assets traded between buyers and sellers. In addition to enabling exchange of previously issued financial assets, financial markets make possible the borrowing and lending by facilitating the sale by newly issued financial assets. Examples of financial markets include the New York Stock Exchange (which is involved in the resale of previously issued stock shares), the U.S. government bond market (which is involved in the resale of previously issued bonds), and the U.S. Treasury bills auction (sales of newly issued T-bills). A financial institution is an organization whose primary source of profits is through financial asset transactions. Examples of such financial institutions include discount brokers, banks, insurance companies, and complex multi-function financial institutions such as Merrill Lynch. Financial institutions participate in financial markets by creating and/or exchange of financial assets. In the financial market there are four institutions that carry out in this type of trade. One of which is a broker which is a commissioned agent of a buyer/seller who facilitates trade by locating a seller/buyer to complete the desired transaction. A broker does not take a position in the assets he or she trades; there is no maintaining of inventories in these assets on behalf of the broker. The commissions they charge to the users of their services determine the profits of brokers. Examples of brokers include real estate brokers and stockbrokers. Dealers, like brokers, facilitate trade by matching buyers with sellers of assets; they do not engage in asset transformation. Unlike brokers, however, a dealer can and does "take positions" (i.e., maintain inventories) in the assets he or she trades that permit the dealer to sell out of inventory rather than always having to locate sellers to match every offer to buy. Also, unlike brokers, dealers do not receive sales commissions.

Conduct a Swot Analysis Essay

These range from one star to Five star deluxe depending upon size and amenities. About 30% of the rooms fall under the 5-star deluxe categories. To find out the present status of this industry a strength, weakness opportunity and threat (SWOT) analysis is mental. This will help us in understanding this industry and also identify the weak spots. S. W. O. T ANALYSIS OF HOTEL INDUSTRY Strengths ? A very wide variety of hotels is present in the country that can fulfill the demand of the tourists. ? There are international players in the market such as Taj and Oberoi & International Chains. Thus, the needs of the international tourists travellers are met while they are on a visit to India. ? Manpower costs in the Indian hotel industry is one of the lowest in the world. This provides better margins for Indian hotel industry. ? India offers a readymade tourist destination with the resources it has. Thus the magnet to pull customers already exists and has potential grow. Weaknesses ? The cost of land in India is high at 50% of total project cost as against 15% abroad. This acts as a major deterrent to the Indian hotel industry. ? The hotel industry in India is heavily staffed. This can be gauged from he facts that while Indian hotel companies have a staff to room ratio of 3:1, this ratio is 1:1 for international hotel companies. ? High tax structure in the industry makes the industry worse off than its international equivalent. In India the expenditure tax, luxury tax and sales tax inflate the hotel bill by over 30%. Effective tax in the South East Asian countries works ou t to only 4-5%. ? Only 97,000 hotel rooms are available in India today, which is less than the Bangkok hotel capacity. ? The services currently offered by the hotels in India are only limited value added services. It is not comparable to the existing world standards. Opportunities ? Demand between the national and the inbound tourists can be easily managed due to difference in the period of holidays. For international tourists the peak season for arrival is between September to March when the climatic conditions are suitable where as the national tourist waits for school holidays, generally the summer months. ? In the long-term the hotel industry in India has latent potential for growth. This is because India is an ideal destination for tourists as it is the only country with the most diverse topography. For India, the inbound tourists are a mere 0. 49% of the global figures. This number is expected to increase at a phenomenal rate thus pushing up the demand for the hotel industry. ? Unique experience in heritage hotels. Threats ? Guest houses replace the hotels. This is a growing trend in the west and is now catching up in India also, thus diverting the hotel traffic. ? Political turbulence in the area reduces tourist traffic and thus the business of the hotels. In India examples of the same are Insurgency in Jammu Kashmir and the Kargil war. ? Changing trends in the west demand imilar changes in India, which here are difficult to implement due to high project costs. ? The economic conditions of a country have a direct impact on the earnings in hotel industry. Lack of training man power in the hotel industry. Transport Facilities A well knit and coordinated system of transport plays an important role in the sustained economic growth of the country. The present transport system of th e country comprises of several modes of transport including rail, road, air transport etc. Tourism industry is also affected by the performance of these services heavy road taxes are the great threat to the tourism industry.

Clausius-Clapeyron Equation Example Problem

The Clausius-Clapeyron equation is a relation named for Rudolf Clausius and Benoit Emile Clapeyron. The equation describes the phase transition between two phases of matter that have the same composition. Thus, the Clausius-Clapeyron equation can be used to estimate vapor pressure as a function of temperature or to find the heat of the phase transition from the vapor pressures at two temperatures. When graphed, the relationship between temperature and pressure of a liquid is a curve rather than a straight line. In the case of water, for example, vapor pressure increases much faster than temperature. The Clausius-Clapeyron equation gives the slope of the tangents to the curve. This example problem demonstrates using the Clausius-Clapeyron equation to predict the vapor pressure of a solution. Problem The vapor pressure of 1-propanol is 10.0 torr at 14.7  °C. Calculate the vapor pressure at 52.8  °C.Given:Heat of vaporization of 1-propanol 47.2 kJ/mol Solution The Clausius-Clapeyron equation relates a solutions vapor pressures at different temperatures to the heat of vaporization. The Clausius-Clapeyron equation is expressed byln[PT1,vap/PT2,vap] (ΔHvap/R)[1/T2 - 1/T1]Where:ΔHvap is the enthalpy of vaporization of the solutionR is the ideal gas constant 0.008314 kJ/K ·molT1 and T2 are the absolute temperatures of the solution in KelvinPT1,vap and PT2,vap is the vapor pressure of the solution at temperature T1 and T2 Step 1: Convert  °C to K TK  °C 273.15T1 14.7  °C 273.15T1 287.85 KT2 52.8  °C 273.15T2 325.95 K Step 2: Find PT2,vap ln[10 torr/PT2,vap] (47.2 kJ/mol/0.008314 kJ/K ·mol)[1/325.95 K - 1/287.85 K]ln[10 torr/PT2,vap] 5677(-4.06 x 10-4)ln[10 torr/PT2,vap] -2.305take the antilog of both sides 10 torr/PT2,vap 0.997PT2,vap/10 torr 10.02PT2,vap 100.2 torr Answer The vapor pressure of 1-propanol at 52.8  °C is 100.2 torr.