Investment Risk, Return, and Analysis Techniques
Sources of Risk
- Interest Rate Risk: Variation in returns due to market interest rate fluctuations, affecting debt securities.
- Market Risk: Systematic risk caused by bull and bear market forces, impacting share prices.
- Purchasing Power Risk: Variation in returns due to inflation.
- Business Risk: Risks associated with a company’s operating environment, both internal and external.
- Financial Risk: Variability of income to equity capital due to debt capital, related to a company’s capital structure.
Return
The
International Organizational Structures for Competitive Advantage
Organizational Structures for Competitive Advantage
An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward achieving organizational aims. Organizations must be efficient, flexible, innovative, and caring to achieve a sustainable competitive advantage.
Simple Structures (U-Form/Functional with Export Department)
Common in small and medium-sized enterprises (SMEs) and firms in early life stages, this structure houses exports within
Read MoreUnderstanding the Global Marketplace
The Global Marketplace
Definition
A market is an institutional structure that permits people and organizations to exchange goods, services, and labor. The United States, for example, is a market. The United States, Canada, and Mexico form a quasi-free market governed by the North American Free Trade Agreement. The European Union is a market. A global market is not limited to specific geographic locations but rather involves the exchange of goods, services, and labor anywhere in the world. For example,
Read MoreEnterprise Portals and E-Commerce: Key Concepts
Enterprise Portals
A portal is software that manages user access to multiple applications, information sources, or an organization’s corporate intranet. Access is tailored based on the user’s role or profile.
Portals are designed to enhance key organizational aspects:
- Provide a single point of access to all corporate data.
- Offer the necessary infrastructure for knowledge management.
- Customize access to applications and information.
- Personalize the portal interface according to end-user preferences.
- Facilitate
Stock Market Trading Modalities: Auctions, Orders, and Takeovers
Stock Market Trading Modalities
Principal recruitment modalities:
General Pattern: The recruitment method used for most liquid securities. It’s applied to the majority of values listed on the SIBE. This type of contract allows for trading operations at any time between 9:00 AM and 5:30 PM.
Fixing: Specific contracts for less liquid securities (those with a low number of operations in the continuous trading session). In this case, values are maintained at auction throughout the session. All purchase
Read MoreUnderstanding the Company as an Economic Unit
The Company as an Economic Unit
Companies are organizations that provide goods and services to meet the needs of the population. However, not all human needs are met by companies (e.g., knowledge, happiness). Companies produce goods and services for those who can afford them, creating a market. Families are the basic consumption unit, using goods and services and providing production factors (labor, capital, and natural resources). Consumption and production factors are key elements in the economic