European financial market Essay Example | Topics and Well Written Essays - 1750 words

European financial market - Essay ExampleIn business parlance, pooling is the grouping credit transactions like bank lends( Brigham, 1985). An example is when loans and another(prenominal) long term liabilities with the same characteristics are pooled successfully into a new stock. Other examples of pooling applying for cash loans(Weston, 1993) with property, plant and equipment are used as collateral loan received is used to invest in several stocks and bonds. The company can also enter into a bond agreement where the bank intermediaries will crock up a $200,000 loan where the house and lot and another factory equipment will be pooled together to be used as collateral to put secure stocks in the stock exchange.Funds includes all available money, including cash and checks deposited in banks and cash on hand. Funds also include mutual funds(Gartner,1997) where money is invested in many stocks and bonds and not lumped on one stock or bond alone.Pension fund is one fund pooling wher e the employees contribute a small join of money to a fund so that when such employee retires, he or she will be able to receive a pension benefit upon his or her retirement. Pension fund could be availed of upon retirement either by lump sum method or monthly method. The factors that affect the success(Thompson, 1999) or failure of a pension fund is based on the tables below. The Life expectancy table shows , in 2002, that in the get together Kingdom women will generally live until the ripe(p) old mount of 80 years old as compared to only 73.7 years old in 1960. The men, meanwhile, will live up to the ripe age of 75.2 which is an increase from the 67.0 years old age in the year 1960. The elderly will increase to 47 percent in the year 2040 in the United Kingdom as compared to only 32 percent in the year 2020. The table below also shows that pension assets divided by Gross house servant Product is 91 which lower than the amount accorded to Switzerland and Sweden. The pension ass ets of United Kingdom pension assets will reach US $1,403,000.000. The real returns divided by endangerment for United kingdom pension fund is 5.9 and its 50-50 bond equity is 4.4 while the pension plans global portfolio 67.5 and lastly, The real average earnings of United Kingdom is 2.8. unitary popular pooling of fund transaction is to exchange cash on and cash in banks and to invest these funds in the stock market. The company then generates income both ways. The first way is to earn dividends that the invested company declares. The second way to gain income is to sell the stocks at a market price that at a more than higher than the price when the company bought the stocks. THREE OTHER FUNCTIONS OF FINANCIAL SYSTEMFinancial System (UK) . This is defined as the information system(Obrien,1992) shows us all currency transactions using applications such as word, excel, quickbooks, MYOB accounting software and many others for the gathering of business related data such as official emolument received from suppliers for purchases paid or officials receipts issued for items sold. Electricity, water and telephone bills are also documents evidencing data to be inputted in the