The importance of the Roles Played by the Stock Market Assignment

The importance of the Roles Played by the Stock Market - Assignment Example The stock market has so many roles that it plays and the various roles are of utmost importance as a primary market  and as a secondary market  in the development of the economy. There are quite a number of the most stable, mature, and well performing stock markets around the world, for instance, London, Hong Kong and New York(Van Antwerp,W,1975)   The roles that the stock markets perform are very central to the development of any economy. By virtue of the primary markets being involved with new securities, this is where an investor interested in initial public offerings of any public company and also government bonds can easily go find them. In such a market, securities are sold to investors directly from the selling company itself. This makes trading at the stock market faster and easier. In the London stock exchange for instance ,one of the most common traded securities are the municipal bonds, this basically entails the direct purchasing of debenture from the concerned auth orities, for instance, the municipality. The London stock exchange put a lot of premium on these primary markets because to them, these markets are very important not just in strengthening the economy but also in as far as capital markets are concerned. The recent world financial crisis had, indeed, a great negative impact to the performance of the stock markets world over. The stock exchanges, for instance, does provide facilities related to issuance or redemption of securities and many other like capital events, income payment and  dividends. Securities that are traded on any given stock exchange may include  shares  that are provided by the unit trusts, companies,  derivatives as well as investment products such as bonds(Giddy,1994) Stock exchange is, in most cases considered to be the most necessary component of any  stock market. The stock market’s demand and supply is normally driven by so many factors which, in virtually all the fee markets, affect stocksâ₠¬â„¢ price. In any country the financial system tends to fund other areas from the haves and their surplus funds to the ones with a shortage in funds, by direct market financing or indirect bank finance. A country’s financial system and markets matters a lot in as far as the economic growth is concerned. The stock market plays a very big role in ensuring that the economy grows steadily. As much as some economists do not believe in the argument that the finance-growth kind of relationship between how well or bad the stock market is doing to the economic development.The economic development that is seen in any place always creates demands for certain types of financial arrangements, and financial system always tend to automatically respond to such demands. The stock market has natural mechanisms that help in addressing the issue of ensuring that a nation or a city has achieved what is considered to be the optimal financial system outlook. Overall, the stock market stabilizes th e financial system, together with other well-developed systems for instance a good legal system, and this is normally done by incorporating elements or aspects of direct market based finance and indirect banking based finance. A stable and well developed stock market ensures that that there is a stable and strong financial system in place

Impacts of MIS on Aramex Assignment Example | Topics and Well Written Essays - 2000 words

Impacts of MIS on Aramex - Assignment Example As the paper discusses  while MIS reduces the occurrence of human error, it does not eliminate error. Managers will have to train and educate the employees on the various impacts MIS has on the entire organization’s operations, especially if they are to achieve competitive advantage. For Aramex, the way MIS is implemented will determine whether IT will drive business or whether MIS will become a function to be absorbed by business lines as managers become more versed with the systems. Because MIS will determine the future strategic direction for Aramex it is important to determine the impact of MIS on Aramex’s decision-making, organizational structure, data security, as well as the impact that future trends are likely to have on Aramex’s strategy.  This study outlines that  Aramex has an abundance of data at their disposal that they can draw on when making decisions. Aramex can use many tools in the analysis of data to improve on their decision-making.  A ramex are able to bring a vast collection of analytical tools to focus efforts and extract data value in adding value to the organization. Aramex uses MIS in decision making as MIS provides a process through which Aramex can transform data, which is dispersed or disorganized into high quality information with added value that allows Aramex to make decisions that are more effective.  MIS also has the ability to increase the employee’s insights on the information.... h which Aramex can transform data, which is dispersed or disorganized into high quality information with added value that allows Aramex to make decisions that are more effective (Edwards et al, 2000, p. 37). MIS also provides for a process that coherently combines skills to analyze and interpret information from numerous organizational sources, as well as the ability to aid non-specialists in deciphering complex technical information. Finally, MIS also has the ability to increase the employee’s insights on the information (Edwards et al, 2000: p38). MIS aids in the process of value extraction from data, such as the development of a hypothesis, data gathering, data analysis, data interpretation, communication of insights, and making decisions that are informed to take action (Fazlollahi & Vahidov, 2001, p. 236). MIS has the ability to move an organization to effective handling of information from simply working with data, turning it into knowledge with added value for competiti ve advantage. At Aramex, their MIS framework compares to the Plan Do Check Act cycle (personal communication, August 1, 2013), which is an almost modern quality control. This was designed by Dr. Edwards Deming, which he also referred to as the Shewhart cycle. In six sigma programs, Dr. Deming further refined this cycle in to; define, measure, analyze, control, and improve cycle (Fazlollahi & Vahidov, 2001, p. 236). Using information to enhance decision-making has to do with data conversion into information, while the information is further converted into knowledge that can help the organization in making decisions (Wiederhold, 2000: p89). According to Mr. Kamal, Aramex uses the PPVC system for data conversion (personal communication, August 1, 2013). PPVC as a prescriptive normative model