Financial Management. Why do bubbles and bursts occur in financial markets? In discussing this issue, you need to focus on the rationality of investors, the availability of information to different categories of investors, and the use of historical data in financial decision making.
One of the most important contributions that high-finance people talk about is financial innovation, which includes things like securitization, creation of derivatives, risk management and hedging, and finding innovative ways of capital management. Many people claim that no country can prosper without a great financial system. But after the 2008 financial crisis, these claims have been dispute-d by many people. Provide a thoughtful discussion on the following topic: Does financial innovation help economic growth?
It has been found by researchers that P/E and profitability ratios are not necessarily highly correlate-d—positively or negatively. Think carefully about this issue and discuss why that is the case. Specifically, think about the role of earning numbers, how they are generate-d, what their purpose is, how markets view them, other factors that impact the quality of these numbers, and other sources of information that are neede-d to interpret these numbers correctly.
The quotes should be complete sentences (no more, less) and should be incorporate-d in your essay to illustrate your ideas. Please, cite your sources in a clickable reference list at the end. Also, do not copy without providing proper attribution (quotation marks and in-line citations). Also, write an essay format, not in bullet form, numbering, or another list format. It would be best if you use your own words. Lastly, proofread your work and run it through Grammarly for thorough confirmation.