Financial Market Transactions - Literature review Example

EXECUTING AND REPORTING FINANCIAL MARKET TRANSACTIONS NAME AFFILIATION SCHOOL EXECUTING AND REPORTING FINANCIAL MARKET TRANSACTIONS Introduction There are many tools that can be used in the financial market to be able to monitor, evaluate and make decision on the components in the market. Investors and brokers basically embark on two methods which are fundamental and technical analysis of the market. Technical analysis is study of stock over period of time and with the trend be able to predict the future and expected movement of the stock. In this study will involve analyses of the three companies Aldar Properties PJSC, TASWEEK Real Estate Development and Marketing and Medical Property Trust Company profiles The following are companies that are used in analysis Aldar Properties PJSC Aldar Properties founded in the year 2001 is a real estate industry development in the emirate of Abu Dhabi and serves the MENA region. Currently it has 39 projects in the UAE and boasts the development of some of the most prestigious and luxurious projects in the country. I chose Aldar Properties is its remarkable growth over the past years and its continuous competitive advantage. Aldar Properties net savings was 100 million AED in 2014 and increased to 150 million in 2015 making it one of the most cost effective real estate companies. It follows efficient and consolidated style of operations that has led to cost cutting hence saving on cost (Halvorson, 2008) TASWEEK Real Estate Development and Marketing ITASWEEK is a wide range portfolio and being of the oldest property management and investment innovation in the real estate. It is listed in UAE exchange market it has been created in such a way it suits clients need. Unless other real estate companies TASWEEK residential prices have been constant in some period regardless other real estate companies regardless the inflation of the economy. The current company portfolio is 8 million USD and it has many investors due to it in diversity n products it deals in and currently it has 359 employees. For a period three year the company has paid a 0.8 USD dividend which has increased from the more than 20 years it has been operation (Neil, 1993).. Medical Property Trust It is an interesting sort of land Investment Company which represents considerable authority in putting resources into the social insurance segment. Restorative property trust work intimately with the social insurance part and permit the medicinal services administrator to tap the land esteem and raise important assets for development, staff preparing and enlistment, takeover other human services suppliers and so forth. In short it encourages the medicinal services supplier to amplify the profits from what they know the best social insurance. By centering and actualizing this solid and well demonstrated plan of action and conveying the best accessible ability, MPT has possessed the capacity to enroll great development year on year. The aggregate resource esteem has gone to more than $ 1 billion dollars in simply most recent five years and organization focusing to keep on developing at the same rate (Barthel, 2014). Literature review Earnings prediction and analysis This study has increased fundamental analysis past latitudinal and chronological limits and it takes into account detailed financial statement information in the decision making. This involves using the current available data in making future predictions. When analyzing the data involves taking into consideration factors such as historical earnings and the industry trend, in this analysis it involves estimating the expected sales and cost of production. Investors look at the consensus estimate to make decisions. Most of investor and brokers do not rely on the ability to increase earnings but on the consensus estimate (Merkley, 2013). Foundations, computational, statistical inference and empirical implementation of Technical analysis In this paper it aims to examine and evaluate the technical analysis, this because regardless the method being used by the investor and brokers it has not been recommended. This is because it is assumed to be subjective and technical. Also known as charting this method has not received academy acceptance as the interpretation of is dependent on the reader. To address the problem associated with this method; this study focuses on use of systemic and consistent approach. Use of non-parametric regression in of the above companies from 1991 to 2015 has used indicating the effectiveness of the method (Maghyereh, 2012). The formula is used is shown below (Kusuoka, 2001) General deviation measures in the portfolio analysis optimal conditions Optimal risk sharing involves use of finance and economic conditions. Most investors prefer classical theories in responding to unknown profits when selecting the best portfolio, they should that minimize variance. By use of one fund and master fund portfolio involve selecting portfolio that is practical in meeting individual functions. In this study focuses on the replacement of deviation measures with standard measures that focusing on the discrete distribution and continuous distributions (Rockafellar, 2002) It is hard to investors to find ideal situations the specialists attempted to locate the principle regions which have the best impact of changing or influencing the profits earned by financial specialists through their portfolio. In its decisions, it expresses that financial specialists will probably be fruitful in the event that they completely comprehend and investigate a nation's general economy and other administrative components before they put resources into the same. On the other hand, a portfolio's danger is additionally impacted by certain macroeconomic elements which should likewise be considered by speculators when they are considering the gainfulness of their ventures (Rockafellar, 2006). Risk management in data environment Incorporation of natural goals into the marketable strategy has gotten to be acknowledged as brilliant business administration. Interior information, for example, human asset measurements, deals numbers, gear inventories, and benefit following have long been viewed as a corporate resource since they aroused as a premise for choice making, return on Investment (ROI) and hazard administration. It bodes well then to view accumulation and investigation of ecological information as more than an administrative commitment yet as a key segment in status assessment and corporate arranging. Discharges inventories and estimations can be pivotal contemplations while arranging creation plans, plant development, fuel sort utilization, and so on. To most successfully understand the advantage of such information, it is basic not to make more work at either the office or corporate level. In this manner astute information administration is vital to utilizing emanations information to convey esteem (Burgert, 2008). Genetic programming approach on technical analysis in foreign market Genetic programming methodology could successfully discover how valuable specialized investigation could be in the remote trade market. As known, outside FOREX markets have high hazard rates and which additionally causes a huge number of financial specialists to lose their cash because of absence of comprehension of the tenets or mechanics and how the framework functions. In this manner, to keep those excessive slip-ups and blunders, a recreation approach has been connected that takes a gander at basically the programming way to deal with foresee its handiness (Emigh, et. al, 1998) Methodology In this study I analyzed the three companies discussed above with the main aim of performing the technical analysis for the three stocks to get the best to invest in that has more returns. The pattern in above diagram it would be effective to buy and sell the stock later. From our study we came up with a guide to assist in decision making for investors. (Taylor, 1992) Conclusion The method can be used to analyze the stock and make investment decisions References Kusuoka, S (2001.: On law invariant coherent risk measures. Advances in Mathematical Economics 3, 83–95) Rockafellar, R.T., Uryasev, S., Zabarankin, M. (2002)Deviation measures in risk analysis and optimization. Report 2002-7, ISE Dept., Univ. of Florida Burgert, C. Ruschendorf, L (2008).: Allocation of risks and equilibrium in markets with finitely many traders. Insurance: Mathematics and Economics, 42(1), 177–188 R. A. Emigh, et. al. “The Illinois Emissions Reduction Market Computer System”, Presented at the 1998 AWMA Emission Conference, New Orleans, Louisiana, December 1998; page 911. Halvorson, R., Viise, J. R., & Fenske, E. C. (2008, January). Abu Dhabi Central Market Redevelopment. In 17 th Congress of IABSE Chicago. Barthel, P. A., & Vignal, L. (2014). Arab Mediterranean Megaprojects after the'Spring': Business as Usual or a New Beginning?. Built Environment, 40(1), 52-71. Neil Myer, F., & Webb, J. (1993). Return properties of equity REITs, common stocks, and commercial real estate: a comparison. Journal of Real Estate Research, 8(1), 87-106. Merkley, K. J., Bamber, L. S., & Christensen, T. E. (2013). Detailed management earnings forecasts: do analysts listen?. Review of Accounting Studies, 18(2), 479-521. Maghyereh, A. I., & Awartani, B. (2012). Modeling and Forecasting Value-at-Risk in the UAE Stock Markets: The Role of Long Memory, Fat Tails and Asymmetries in Return Innovations. Review of Middle East Economics and Finance, 8(1), 1-22. Rockafellar, R. T., Uryasev, S., & Zabarankin, M. (2006). Optimality conditions in portfolio analysis with general deviation measures. Mathematical Programming, 108(2), 515-540. Taylor, M. P., & Allen, H. (1992). The use of technical analysis in the foreign exchange market. Journal of international Money and Finance, 11(3), 304-314. Read More