In task one I have to explain the different markets within the construction industry. I will use national statistics as a source of raw data.
In task two I will describe the four main economic resources needed to enable a construction project to start, looking at the scenario I will be writing as a junior quantity surveyor to the manager and will basically describe the requirements to enable a construction project to start.
In task three I will analyse the different types of finance available for a typical construction project, including the different conditions and terms which have been imposed by the provider. This will entail researching leading banks and finance providers, with regard to their requirements and conditions.
In task four I will resarch leading compnies and provide information on different sources with respect to their terms and conditions.
TASK 1 P2
Capital markets: Capital markets are where buyers and sellers involve with trade of financial securities and they have a pledge, which is called bonds and stocks. Capital markets involve in lending/borrowing money on a longer time basis and involve investors to invest and keep it secured. All the financial transactions are between users of funds and suppliers of funds.
Commodity Markets: Commodity markets are where every supply is controlled by the government and they decide what products and services are needed. They also decide when and how to distribute it. Commodity markets actually help and work to obtain the actual products, such as working in a farm and growing food, also like going out to the sea and pumping oil from the ground, these are all commodity markets unlike the manufactured products where different techniques are used to obtain the ...
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...s that his money might not be repaid back if the business fails.
Shares: preference shares offer their owners preferences over normal shareholders. The difference between the ordinary and the preferred shares is that the preferred shares get the allowed to a fixed payment while ordinary shares don’t. But preference shareholders don’t get to vote in general meetings.
Investments: it’s the purchase of an item that will make more money in the future. An investment will require a good explanation on the business which is being build, as well as the lender is going to take a percentage of that business. For example someone who wanted to build a construction project but he needed £ 100000 he goes to another business man to tell him about his project and if he accepts he gets the money on one condition and that is the lender will take a 30% of the construction project.
Demand plays a huge part on the construction industry before and whilst recovering from the recession. Demand is the willingness and ability of buyers to purchase different quantities of a good at different prices during a specific period of time.
A Market Economy is a government in which the citizens and people decide how the businesses, goods, and services are used and sold. This differs with an economy like a Command Economy, which the government decides everything about the goods sold, including what is produced, sold, and the price at which its sold. This is the main reason why these economies are different, government power and freedom to citizens.
Corporations create two kinds of securities: bonds, representing debt, and stocks, representing ownership or equity interest in their operations. (In Great Britain, the term stock ordinarily refers to a loan, whereas the equity segment is called
Stock investment means you are purchasing a share of the company, therefore the company’s success determines the value of your investment. Buying stocks is not a difficult process; clarification of some important terminology and differentiation helps gives you the foundation to start investing.
In a command economy, what to produce is normally determined by the central economic authority. In a true free market, what to produce is normally determined by personal choices. Conversely, a majority of nations fall somewhere between a true free market and a true command economy with production normally determined by a mixture of central planning and personal choices. As an example, the production of foodstuff 's is normally determined by supply and demand, while others like milk and sugar are normally subsidized by the government. All businesses must make a decision on what to produce when given limited resources. While a society has to decide how much food and shelter to produce in order to satisfy the
The term “commodity” is often considered to be synonymous with a “good,” any produced item, such as refined sugar or textiles (Spickard). Although this seems a decent, basic definition, a commodity actually refers to something useful that can be turned to commercial or other advantage. The key point here is that a good fails to be a commodity when it no longer has a commercial advantage. A pile of gold is only a commodity if someone agrees to buy it.
...es almost zero involvement by the loaner. Equity financing is an exchange of an asset for stock between owner or partner and investor. A repayment is not required but involvement of the investor is which has some benefits and only a few drawbacks. Depending on which option the company chooses to use, the accounting can be different in a few different ways. Equity requires capital contributions and dividends to be distributed while debt financing requires note receivables, note payables, and any accrued interest. Companies have more options than before; the small, medium and big corporations. Businesses usually fiannce when expanding, recovering, or starting up; Debt financing and equity financing both have many advantages and disadvantages along with a variance in accounting methods that should be considered when a business is attempting to make a finance decision.
A single firm or company is a producer, all the producers in the market form and industry, and the people places and consumers that an Industry plans to sell their goods is the market. So supply is simply the amount of goods producers, or an industry is willing to sell at a specific prices in a specific time. Subsequently there is a law of supply that reflects a direct relationship between price and quantity supplied. All else being equal the quantity supplied of an item increases as the price of that item increases. Supply curve represents the relationship between the price of the item and the quantity supplied. The Quantity supplied in a market is just the amount that firms are willing to produce and sell now.
Markets exist for the vast majority of goods and services. Markets can be defined broadly or narrowly. For example there are the consumer goods, capital goods, commodities, financial and labor markets. Each of these broad categories can be broken down into more specific markets. For example within the financial market there are markets for foreign exchange and for long term loans, within the corn modifies market there are the markets for corn and copper and within the consumer goods market there are the markets for clothes and cars. Prices usually play an important role in these markets.
Investment is about choices and risk taking. It has the ability to generate profits or cause losses. The same concept implies in life. The choice that we made is an investment. It influences the goals we aspire to achieve. I aspire to build a successful career in Sales and Trading, and I believe choosing Imperial College Business School to do the Msc degree is a good investment.
This paper explores what it takes to be a construction manager and the responsibilities of being a construction manager and the skills that a construction manager should have. It also explores what good construction managers do to have success on their construction projects and the steps that a construction manager must follow to end a project and meet their deadlines at the same
The stock market is an essential part of a free-market economy, such as America’s. This is because it provides companies the capital they need in exchange for giving away small parts of ownership in their company to investors. The stock market works by letting different companies sell stocks to gain capital, meaning they sell shares of their company through an exchange system in order to make more money. Stocks represent a small amount of ownership in a company. The more stocks a person owns, the more ownership they have of that company. Stocks also represent shares in a company, which are equal parts in which the company’s capital is divided, entitling a shareholder to a portion of the company’s profits. Lastly, all of the buying and selling of stocks happens at an exchange. An exchange is a system or market in which stocks can be bought and sold within or between countries. All of these aspects together create the stock market.
A market economy may therefore also be known as a free market economy. It is a type of economic system in which the trading and exchange of goods, services and information takes place. The phrase is normally applied to countries or management regions that follow this approach. It functions primarily depending upon the forces of the market, namely demand and supply. Every commodity allocates and distributes based on the principle of “price”. Generally, price of a commodity shoots up when its demand exceeds supply and when the reverse occurs.
Ans. Commodity Finance means funding of the commodity trading. It is a type of trade finance where a company in the commodity market is funded by the investors to make maximum output and repay the loans to the investors when the exports of commodity begins. A commodity can include metals and mining (hard commodities), agriculture crops (soft commodities) and even energy.
The consumer market is made up of individuals who buy goods and services for their own personal use or use in their household.