A financial market, unlike the other markets, is more of an intangible concept and basically refers to a marketplace where buyers and sellers usually participate in an exchange of assets such as equities, bonds, derivatives and currencies. The basic characteristic of any financial market comprises of transparent pricing, basic regulations regarding costs and fees and a number of market forces, that determine the prices of securities that trade. These financial markets can be found almost in every single country across the world, some of these may be small, with a very few numbers of participants, while some are huge in terms of the amount of money they trade, for example, the New York Stock Exchange.
It is basically investors, who have an access to a great number of financial markets and exchanges, that deal with a vast array of financial products. Some of these markets have always been open to private investors, while some have always remained, pretty much exclusive in terms of catering to major international banks and financial professionals. There are a variety of financial markets, which make up the field of finance.
Capital Markets
These markets are where individuals and various organizations, deal with the trading of financial securities. There are a number of organizations and companies, that sell securities on these markets, in order to raise funds for themselves. This is why the capital markets consist of both primary as well as secondary markets. Any organization or corporation requires capital in order to finance its various operations, as well as to engage in long-term investments. In order to accomplish this, the corporation raises money through the sale of securities, basically bonds and stocks; all of which is in the name of the company.
Stock Markets
These are markets, which allow all of the investors to buy and sell the shares in publicly traded companies. They are popularly known to be the most vital area of a market economy, this is because they provide companies, with the access to capital and all the investors, with a chance to have a percentage of ownership in the company. This market is divided into primary markets as well as secondary markets.
Bond Markets
A bond refers to any debt investment in which, an investor loans money to an entity, this can be either corporate or governmental. This entity basically borrows the funds for a specific period of time Bonds are usually used by a number of companies, municipalities, states as well as governments, in order to finance a variety of projects and activities. This markets basically deals with buying and selling of bonds on the various credit markets, all over the world. This market is also referred to as the debt market or credit market or fixed-income market. The many types of bonds are corporate bonds, municipal bonds, notes and bills which are also known as treasuries and so on.
All of these markets require a financial professional, wither a corporate banker, investment bankers or portfolio manager and so on, to deal with their various aspects. The various attractive benefits that these markets offer are a result of a lot of finance aspirants seeking positions in the field of financial markets. Imarticus Learning is one of the best institute for finance and investment banking training and very much preferred by these professionals, in order to get a hang of how the markets work, through various certification courses in corporate finance, investment banking and so on.
Tag: certificate courses in finance
Blockchain: The Possible Answer to Trade Finance Modernization
Recently, a study was conducted by the capital financial technology giant, C2FO, regarding European treasures. Herein, it was found that 75% of these treasurers are supposedly focussing on investing in trade finance technology, in the following year of 2017.
Colin Sharp, who holds the position of senior vice-president, EMEA at C2FO, is of the opinion that the shifts within the microeconomic environment, are resulting in the pressuring of corporates, in order to refocus their efforts to trade finance. He further goes ahead to say, “Treasurers are facing a lot of uncertainty, both from the United States of America and as result of the on goings around Brexit. This is putting immense pressure over the supply chain, and with the demand increasing and decreasing. Treasurers want the ability to use their assets to make returns and give some certainty.”
There have been more and more efforts, which are offering insight into, finding out how blockchain can supposedly be used, in order to benefit small as well as medium size ventures. Any said digital trade chain, supposedly wants to achieve a perfect balance, between identification of opportunities and connecting them with each other and their banking partners. This would be made even simpler, when banks would bring in their own client bases herein, thus eliminating rigorous on-boarding.
Anne Claire Gorge, who holds the position of the head of the product management department, trade services, and finance of Societe Generale, is of the opinion that, treasurers believe that more control over trade finances, can help them greatly in the other areas of business. She says, “Better use of trade finance helps theses treasurers, to have a greater overview of their working capital positions. Offering financial solutions to suppliers, for instance, in order to improve the terms of payments, helps greatly in guaranteeing cash flow.” She is of the firm thought that the deployment of latest technology will definitely end up simplifying the process. In her words, “Trade happens to be very heavy on letters of credit or invoicing solutions, making it complicated to finance receivables and payables. Doing all this, as a part of a digital solution, has great potential of making it easier”.
The experts believe that a little rocking, cannot cause any harm to the ship, in financial jargon, they are basically hinting at the climate of uncertainty. Especially when it comes to Banks, a little uncertainty does not seem to be a negative thing. This actually makes for a rather encouraging temperature for the requirement of trade finance tools, in order to offer stronger guarantees. The solution for the entire thing can finally come from block chain, is the combined belief of all the trade finance gurus. But for this concept to see the light of the day, there needs to be a rigorous industry wide effort, in the direction of implementation.
As many changes take place, in order to develop and strengthen the field of Trade Finance, the number of aspirants herein also multiplies. This is why professional training institutes like Imarticus Learning seem to be getting popular by the day.
The Benefits of a CISI Certification with Imarticus Learning
The Chartered Institute for Securities and Investments is considered to be the leading professional body, globally, for securities, investment, wealth and financial planning professionals. Founded in the year 1992 by the London Stock Exchange, today, it has taken up the role of a global community, spanning around 116 countries and boasting of about 40,000 members. It was conferred the title of ‘Chartered Institute of Securities and Investment’ in the year 2009 when it was granted a Royal Charter. Headquartered in London, this global professional body has its offices spread over various countries, including Sri Lanka, India, Singapore, Dubai, and Dublin.
This professional body is known to offer close to 40,000 CISI qualifications every year in around 70 countries, to qualify for which candidates have to take the Computer Based Test in the various centres worldwide. Apart from this, it is also the chief examining body in the industry and thereby, offers a number of industry memberships and training to the qualifying candidates. Apart from offering qualifications, the CISI is also known to offer, the CPD scheme, also known as, Continuing Professional Development scheme, which is basically rewarded to the members of, every level of seniority, geographical location, as well as industry specialization. The institute is known to have certain charitable objectives, which are as follows;
“To promote, for the public benefit, the advancement and dissemination of knowledge in the field of securities and investments to develop high ethical standards for practitioners in securities and investments and to promote such standards in the UK and overseas to act as an authoritative body for the purpose of consultation and research in matters of education or public interest concerning investment in securities.”
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Being a member of this prestigious organization, sends out a message to all your clients and colleagues, including the wider public, that you as a professional, are committed to professionalism, integrity, and excellence. Becoming a CISI endorsed member is the most beneficial in terms of networking for a professional. One can easily access the international network of 40,000 financial practitioners.
Apart from this, the CISI body organizes a number of formal mixers, like forums, events, and other social media activities, which involve and encourage their members to build an array of networks and connections, with similar professionals from across the country. Any professional who is affiliated by the designations of CISI can meet up and keep abreast with the current happenings in the financial markets, while at the same time can also discuss them, with the top level delegates from across the world at any given point. The CISI body also offers a number of training courses apart from its social events and conferences. In order to get an entry into this elite bunch of people, one has to acquire the much coveted CISI certification.
International Certification & Placement You will receive the industry endorsed Certified Investment Banking Operations Professional (CIBOP) certification and the optional CISI certified IOC (Investment Operations Certificate). The Imarticus Learning Career Services and Placements team provides you guidance and assistance throughout the program, giving you the best career opportunities in leading international firms.
Why is the Japanese Finance Market 2016’s Biggest Comeback Story?
In The News
Buoyed by a weak yen and a favorable monetary stance from the Bank of Japan, Japanese stocks have rebounded 20% showing the best gains among developing market peers. The Topix index was poised to join the Nikkei 225 in a bull market on Monday and the broader stock gauge will be up more than 20 per cent from its low in February. The benchmark Nikkei 225 ended up 104.78 points, or 0.59 percent, at 17,967.41, at its highest close since January 6.
This is quite the recovery for a market that had fallen 18 percent in the first have as the yen strengthened Shinzo Abe’s ‘Abeconomics’ received tepid response and was unable to revive economic growth.
Trump Victory– There is increased feeling that the shocking Trump victory will now lead to higher spending that will in turn fuel a rise in US interest rates and lead to a stronger US dollar. That would of course mean a weaker yen and a excellent outlook for Japanese exporters like Sony and Toyota. The Yen has dropped 6 percent against the dollar in the last month itself, much more than any other Asian currency.
Bank of Japan monetary policy– The Bank of Japan also restrained itself and refrained from lowering rates, which allows us to infer that they believe the Japanese Economy is about to bounce back after stalling in the second quarter. “The bigger picture is that spare capacity is shrinking gradually: gross domestic product expanded by 0.9 per cent over the past 12 months, which is above potential growth,” said Marcel Thieliant, analyst at Capital Economics in Singapore to the Financial Times. The surge in growth came on the back of favourable balance of payments. Exports rose and Imports fell. The BOJ capped 10-year bonds at 0 percent.
But it’s best not to celebrate too soon because nominal growth, which does not adjust for price changes, was weaker at 0.8 percent vs the real growth of 2.2 percent. This could mean Japan is sliding into a period of deflation – a contraction of in the supply of circulated money, leading to increased purchasing power and wages higher than would have normally been.
This, and a lot more, is one of the topics we discuss in our Investment Banking Courses in India. You can also watch the video on our students discussing about what goes on in our classes.
Fundamentals of Forecasting – Basic Modeling Hygiene – III
By Reshma Krishnan
We are continuing to understand the Fundamentals of Forecasting. Please click here for Part 1 and Part 2.
Many aspiring candidates ask us what is so special about the FMVC program at Imarticus Learning. After all, shouldn’t an MBA suffice? The problem with MBA’s, regardless of which school you go to, is that they don’t teach you role specific issues. For instance, they don’t have specific modeling modules. They will have a forecasting module but they won’t teach you how to model or how to forecast step by step. In the Financial Modelling and Valuation Course (FMVC), India’s leading Forecasting and Financial Modeling program, we teach you the minutae and we go into specifics. One such specific is modeling and forecasting hygiene.
Hard Coding- the model users bane.
This is the first thing I teach in modeling class. Hard Coding is essentially a stand alone number in a cell, which has no back up. It says nothing about the number. You must never hard code a forecasted number because the forecast is always done on the back of an assumption, which has to be modeled in. Hard coded numbers are usually past data, actual data that has been verified and been the result of auditing. A forecasted number should always be a linked number from an assumption.
Colour Coding
Staying with hard coded numbers, it always helps to colour code. In fact, in my class, I mark an assignment zero if it is not colour coded. Red hardcoded number tells me that the forecaster had no option but to hard code. All actuals should be in a different colour to forecasts and all delta numbers, that is the variable you are using to arrive at a forecast needs to also be in a different number.
Give the delta its own cell
Let’s say you want to increase the sale of pencils in 2017 by 10% from 2016. You have two ways to do it.
=(2016 revenue cell) x 10% +(2016 revenue cell) = 2017 revenue.
Or
You create a special cell for 10%
= ((2016 revenue cell) x (10% cell) )+(2016 revenue cell) = 2017 revenue.
Here I am assuming that revenue is growing by 10% . This helps me change the delta as I see fit which then changes my model. The delta is the rational for my model. If you hide it within a formula, I have to constantly look at formulas to find my assumptions.
Learn more about Forecasting by joining our course, FMVC,Financial Modeling and Valuation Course, India’s leading program in Financial Modeling and Valuation and focused on improving your chances on having a career in Investment Banking or Equity Research.
Fundamentals of Forecasting – the Basic Premise of Forecasting – II
By Reshma Krishnan
We are continuing to understand the Fundamentals of Forecasting. Please click here
The fewer the assumptions, the stronger the forecast – at least in the beginning when you are learning how to model. Most investment Banking models end up running into 40 assumption sheets, each linked to another. While you might believe such minutiae makes a difference, it’s almost always just to make yourself feel better. Yes, your ability to understand every cost element is good, but its futile if your understanding of the industry works or its cost structure is weak. Key assumptions built into the forecast can also be lost, like trees in a forest. Links can be very hard to find. A simple forecast on the other hand helps you understand what drives basic line items while giving you the ability change basic assumptions. So for instance if you are forecasting the cost of a cup of tea, you break the cup of tea into its major elements, milk, tea, sugar. Three basic drivers, but if you decide to link the price of tea not to the retail rate but to an auction rate that is further linked to an auction house pricing, there are many chances your 
model will be faulty for no tangible benefit.
Forecasting is hard- if it wasn’t, financial modeling and forecasting would not be the number one skill required in financial services, especially Equity Research, or the most popular program in Financial Services Education. It requires patience and a deep thorough understanding of the industry. Forecasting is what Equity Research Analysts do all the time which is why Equity Research Analysts are industry specialists. You won’t find an analyst doing both steel and retail e-commerce. If you are not detail oriented, you are not going to be great at forecasting.
Your forecast is as good as your data, or your weakest link- using solid numbers always feels like an attractive proposition. Investment Bankers love to receive solid data from the clients. Equity Research analysts love to receive solid numbers from the industry or a company but what data do you trust. How often do you use that data? Can you remove the bias in the data. Data you receive from clients will almost always be optimistic, same with industry. Data you receive from Private Equity will almost always be pessimistic. There is bias in every data and your job is to remove bias.
Learn more about Forecasting by joining our course, FMVC, Financial Modeling and Valuation Course, India’s leading program in Financial Modeling and Valuation and focused on improving your chances on having a career in Investment Banking or Equity Research.
Overview of Careers in Finance
The field of Finance is often said to be all about the science of money management. A career in Finance would entail coordinating between assets and liabilities. The finance industry is popularly known to provide lucrative careers and demand intellect of the highest order. As a rule, this prestigious industry attracts a lot of aspirants looking for a career with great opportunities.
Possession of just a graduate degree thins the chances of getting into this field. Thus, it becomes important to either be an MBA or have a higher degree to guarantee a smooth entry herein. There are many courses like certification programs in investment banking, courses in corporate finance and so on. There are a lot of programs offering training to clear various finance exams and acquire certain designations and licenses. Lately a lot of institutes have started offering programs to clear the CFA exams (Chartered Financial Analyst) as well as for the license required to enact certain kind of transactions. One can go for any such short term or long term course to enhance their resume and better their career prospects.
Investment Banking is the most sought after career in Finance. Today, Banks are no longer limited to being agents of withdrawal and depositing of money. There are many types of banks like the investment banks, which act as financial advisors to firms, hedge funds wherein the money of wealthy individuals and companies is managed, the difference here is that there are huge risks taken when it comes to buying and selling public stocks.
Then there are Private Equity firms, which instead of buying securities (stocks) by entire corporations and make convert them into private entities. These firms then either get the corporation entirely under their own banner, or improve their financial situation to earn profits. There are also real estate firms which have their dealings in buying or developing already existing real estate projects. There are firms which deal in ‘real money’ which go on to invest money in various firms to reap the benefits of the same.
There are a lot of roles that a career in Finance offers and a college degree is not always required for them. There are a lot of aspirants, who tend to start off a stint with banks and then after a considerable experience, move on to get a MBA degree. It is imperative to know that investment banking jobs usually have cut-throat competition and roles here include mergers and acquisitions, providing financial advices in terms of financial modeling, evaluation of the firm and so on.
Financial analyst and Financial Advisors also are jobs of substance, if one is very interested to work with data and draw relevant insights; the former career is always preferred. The job profile of a Financial Advisor, with the flexibility of the work and the proximity to the clients as well as the fact that the competition is less, is chosen by quite a few. There are many other career profiles like working for hedge fund firms, private equity firms, portfolio managing jobs, trading, analyst jobs etc. There are also Investment Banking Media jobs, where someone with great communication skills and a sparkling knowledge of the market can work with media houses.
The field of Finance offers high quality careers which demand individuals with great intellect and motivation, in addition to the challenging environment and great compensation. The fact that there is such high competition to get into this field, goes to prove that one needs to have refined skill set for the same.
Imarticus Learning is a renowned education institute offering a host of short term and long term courses in investment banking, corporate finance and more.
Listening: The Forgotten Managerial Skill
by Zenobia Sethna.
In this age of self promotion, most people don’t tire of hearing their own voices – gloating, complaining, advising, gossiping, what have you. Skills such as listening need to be trained in soft skills training courses. So, if you are the rare one who truly, actively listens to others, and does not talk much, you will stand out. Think about it – people pay a shrink good money to listen to their problems, cause its so rare in real life.
The Dalai Lama said, ‘When you talk, you are only repeating what you already know, but when you listen you may learn something new.’ Just one of the many benefits of listening. Your boss or your subordinates feeling heard and acknowledged, which would make them trust you more, is another.
Most people do not listen with the intent to truly understand, but rather with the intent to reply. And just because you’re quiet and you let others do 75% of the talking, doesn’t mean you’re a good listener either. A powerful listener is able to pay attention to what another person is saying without getting distracted with their ego or personal agenda.
So how do you sharpen your listening skills?
- When interacting one on one, give the other party your undivided attention. Yes, that means stop fiddling with your damn phone and put it aside. The texts and phone calls can wait. Really.
- Don’t interrupt. Let the person speak freely. The goal is to shine the spotlight on them, not you.
- Truly be “present,” instead of daydreaming or thinking about something else.
- Make direct eye contact with the other party and lean in / forward to show you are interested. Likewise don’t distract the talker (and show you are bored) by cracking your knuckles, fidgeting, swaying your legs, or worst of all, yawn.
- Pay attention to the body language of the talker – we know as much as 80% of communication is non-verbal. This is the number one lesson taught in investment banking schools in India. In other words, you can master the act of listening, but won’t be a good listener if you can read body language. ‘The most important thing in communication is hearing what ISN’T said’, said Peter Drucker.
- Forget outdated advice that tells you to repeat statements that you just heard, in order to show the talker that you were paying attention. Something like “So, Tenaz, what I hear you saying is that Geeta’s work is really poor?” Really? What’s the point? Repeating exactly what you heard a minute ago makes you sound like a parrot. Instead, stop repeating and offer some analysis or your interpretation of what the talker just said. Something like “So what you are getting at is that you may have to fire Geeta…”
- You can show you’re in sync with what the person is saying by using “yes”, “yeah”, “mhmm”, “okay” occasionally. This sounds trivial, but it’s important to not act like a zombie and demonstrate some interest and comprehension.
- Open the door to deeper communication by asking open ended questions that encourage reflection and interpretation.
- Validate what you heard. Listening keenly does not mean you have to agree with everything you hear. You can disagree and even express your disagreement. You only need to show the other party that you value their opinion and they feel validated for expressing how they feel.
A wise man said ‘God gave you two ears and only one mouth.’ That surely ought to tell us something.
Imarticus Learning is India’s leading education institute, offering certified industry-endorsed training in Financial Services and the Analytics Domain. Each course also has a module on soft skills training.