Capital market

 

post a link to an article from Wall Street Journal regarding a current event (something in the last 60 days before each post) regarding a topic of your choice from related Chapters.

Choose one of the following topics:

1- Investment criteria – net present value, payback, IRR, Pro Forma, sunk costs, opportunity costs, net working capital, depreciation

 

2- Capital market, return, and risk – expected returns, risk, historical record, volatility, portfolio, announcements, systematic risk, diversification, beta, idiosyncratic risk.

Please summarize the article and comment on how it relates to the chapter materials, and how it applies to the real-world and Financial Management issues.

Sample Solution

Savings and investments are directed between suppliers—people or institutions with resources to lend or invest—and those in need through capital markets. Banks and investors are common suppliers, whereas enterprises, governments, and individuals are frequently the recipients of capital. Primary and secondary markets make up capital markets. The stock market and the bond market are the two most frequent financial markets. The goal of capital markets is to increase transactional efficiency. These markets bring suppliers and people seeking money together and provide a venue for them to trade securities. The phrase “capital market” refers to the physical and virtual venues where various entities trade various sorts of financial assets.

(CQUIN) (2018), more commonly known as Commissioning for Quality and Innovation, is a framework which aims to continually improve quality and drive innovation, it is incentive based to encourage service providers to achieve targets in exchange for financial payment. This system drives forward productivity, beneficial in any establishment.

It is also through continued SI that the NHS has been able to respond successfully to the growing population, the sicker population as well as the ageing population. Statistics show that even with such a growing population the percentage of the general public being satisfied with the NHS has doubled. This has been possible due to the successful implementation of the number of innovative SI programmes. There are also arguments that there has been no healthcare system, anywhere in the world, that has been able to manage even a little growth without cutting down on the numbers of staff or services except the NHS (Allcock et al, 2015).

Various measures have been put in place as a strategy for SI, such measures have been linked with improved care systems in terms of the quality of care and satisfaction of both the service users as well as the healthcare providers. For instance, it is through SI that the NHS has been able to improve dramatically for the last 15 years thus enhancing the quality of care (Allcock et al, 2015). Statistics identify that through SI tailored towards improving the NHS it has led to increased cancer survival (England, 2016). In addition, the level of early death rates due to cardiovascular disease has gone down by approximately 40%. The level of the overall avoidable deaths has reduced by at least 20% following the implementation of the innovative SI in health care. There are also arguments that approximately 160,000 doctors, nurses and other medical staff are now able to treat masses of patients that in the past had to wait for long periods of time for their operations. In fact, the waiting times have reduced from 18 months to around 18 weeks, thus ensuring delivery of care when needed the most, therefore saving lives.

Patient safety plays a prominent role in health care, however, medicine’s vu

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