Financial Markets Assignment Example | Topics and Well Written Essays - 1500 words

Financial Markets - Assignment Example Therefore, it is considerably important that shareholders and financial directors have an excellent understanding of the financial setting in which they conduct their activities. It is important to note that a strong financial environment plays a significant role in economic expansion and prosperity. The many corporations increasing funds to finance investment expenses as well as shareholders saving to gather resources for future expenses require stable financial markets. A rapid improvement in technology has also played a significant role in the expansion of financial markets. It has been made easier to make cross border transactions. The function of trust and in the financial market and institutions cannot be overemphasized. This is for the reason that transactions carried out throughout the financial markets and institutions depend on trust that everyone is up to the good of the other. It is unfortunate that much as technological development and globalization has improved the effi ciency, reports have emerged of extra-large scandals in the financial markets around the globe with the potential of crippling state or global capital raising mechanism as well as dreadful complication on the economy .Scandals in the financial markets such as; The LIBOR incident emerges as one of the worst with the potential of killing the industry. The JPMorgan incident and The Facebook initial public offer. These scandals emerge as the worst with the potential killing of the industry. The thesis of this discussion paper is based on the ‘the effects of technological expansion and globalization on the global financial markets’ particularly in the London financial market. The following issues will be discussed in the paper. Various aspects of the financial markets such as, What it means and what it does in spurring economic growth. Observable crises within the London financial market with its associations with globalization and technological growth A summary of the key i ssues discussed. Abstract This paper discusses different aspects of financial markets. It has recognized that the strong financial environment promotes economic growth in any state. The financial market also plays a significant role in the economic environment since it enables major firms to obtain funding for facilitating investments. The development in technology, telecommunications and globalization has promoted the growth of financial markets. Indeed, the expansion has taken place in the financial markets within national boundaries and worldwide. The thesis for this paper was that much as technological progress and globalization has promoted in the financial markets, reports have also emerged showing that these instruments have also presented a crisis in equal magnitude and measure. Research in this paper has established that computer glitches have had serious consequences in the London Stock Exchange (LSE) because of network failures or technical challenges. The technical incid ents resulted in the suspension of trade for hours. Globalization has also presented varied threats and risks in the financial markets including the absence of transparency. This has increased cases of assumption among investors. In addition, the financial markets in diverse nations access information differently. This is a danger because it enhances negative choices of investment and a lack of responsiveness among the