Global Advisers Company (GAC) is a registered investment counseling firm solelyinvolved in


Global Advisers Company (GAC) is a registered investment counseling firm solelyinvolved in

Don't use plagiarized sources. Get Your Custom Essay on
Global Advisers Company (GAC) is a registered investment counseling firm solelyinvolved in
Just from $13/Page
Order Essay


international securities portfolios. After much research on the

developing economy and capital markets of the country of South Korea, GAC has

decided to include an investment of South Korea stock market in its Emerging Market

Commingled Fund. However, GAC has not yet decided whether to invest actively or

by indexing. Your opinion on the active versus indexing decision has been solicited.

A summary of the research findings follows.

South Korea’s economy is fairly well diversified across agricultural and natural

resources, manufacturing (both consumer and durable goods), and a growing finance

sector. Transaction costs in securities markets are relatively large in South Korea

because of high commissions and government “stamp taxes” on securites trades.

Accounting standards and disclosure regulations are quite detailed, resulting in wide

public availability of reliable information about companies’ financial performance.

Capital flows into and out of South Korea and foreign ownership of South Korea

securities are strictly regulated by an agency of the national government. The

settlement procedures under these ownership rules often cause long delays in settling

trades made by nonresidents. Senior finance officials in the government are working

to deregulate capital flows and foreign ownership, but GAC’s political consultant

believes that isolation sentiment may prevent much real progress in the short term run.

i) Briefly discuss four aspects of the South Korea’s environment that favour investing

actively and four aspects that favour indexing.

(ii) Recommend whether GAC should invest in South Korea actively or by indexing

and justify your recommendation based on the factors identified in part i).

2) “Because corporations do not actually raise any funds in secondary markets, they

(secondary markets) are less important to the economy than primary markets.” Discuss


Source link

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 15% with the discount code BANANA