Write a 2000-word individual research report on a topic of your choice. Your topic should focus on the core financial markets, including bond/ equity/ derivative markets.
Sample solution
Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell.
In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.
God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.
Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.
To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.
References
Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.
Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.
Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.
Sample Answer
Sample Answer
Title: An Analysis of the Core Financial Markets: Bond, Equity, and Derivative Markets
Abstract
This research report explores the core financial markets, including bond, equity, and derivative markets. The objective of this study is to understand the functioning, features, and interconnections of these markets. Through an extensive review of the academic literature, this report provides a comprehensive analysis of the key issues and controversies surrounding these markets. The research question guiding this study is: How do bond, equity, and derivative markets contribute to the overall financial system and impact market participants? The findings highlight the importance of these markets in facilitating capital formation, risk management, and price discovery. The report also identifies gaps in the existing literature and suggests areas for future research. The implications of this research on practice are discussed, emphasizing the need for market participants to have a deep understanding of these core financial markets.
Introduction
The core financial markets, including bond, equity, and derivative markets, play a crucial role in the global economy. These markets serve as essential channels for capital formation, risk management, and price discovery. Understanding the functioning and interconnections of these markets is vital for investors, policymakers, and financial professionals.
The motivation for this research lies in the need to gain insights into how these core financial markets operate and impact market participants. By examining the academic literature, this report aims to identify key issues and controversies surrounding these markets while providing a comprehensive understanding of their features and roles.
Research Question
The core research question guiding this study is: How do bond, equity, and derivative markets contribute to the overall financial system and impact market participants?
To address this question effectively, it is essential to review relevant research and theoretical frameworks related to each market. This will help identify gaps or controversies in the existing literature and set the foundation for further analysis.
Main Body
Bond Market
The bond market is a critical component of the global financial system. Bonds are debt instruments issued by governments, corporations, and other entities to raise capital. This section examines the functioning of the bond market, its features, and its impact on market participants.
1. Functioning of the Bond Market
The bond market facilitates borrowing and lending activities by providing a platform for trading fixed-income securities. It enables governments and corporations to raise funds for various purposes, such as infrastructure development or business expansion. Investors purchase bonds as an investment vehicle that offers regular interest payments and return of principal at maturity.
2. Features of the Bond Market
The bond market offers a wide range of securities with varying characteristics, including maturity, coupon rate, credit rating, and market liquidity. These features influence bond prices and yields, making it essential for investors to understand them when making investment decisions.
3. Impact on Market Participants
The bond market plays a significant role in capital formation by providing a stable source of funding for governments and corporations. It also offers investors a means to diversify their portfolios and generate income through interest payments. However, factors such as interest rate fluctuations and credit risks can affect bond prices and returns.
Equity Market
The equity market, also known as the stock market, represents ownership interests in companies. This section explores the functioning of the equity market, its features, and its impact on market participants.
1. Functioning of the Equity Market
The equity market allows companies to raise capital by selling shares to investors. These shares represent ownership stakes in the company and entitle shareholders to dividends and voting rights. The equity market provides a platform for buying and selling stocks through exchanges or over-the-counter (OTC) markets.
2. Features of the Equity Market
Equity markets offer a wide range of stocks with different characteristics, including market capitalization, sector classification, and dividend policies. Investors analyze these features to assess company performance, growth prospects, and valuation metrics.
3. Impact on Market Participants
The equity market enables companies to raise funds for expansion or other corporate activities. It provides investors with opportunities for capital appreciation and income through dividends. However, stock prices are influenced by factors such as company performance, economic conditions, and market sentiment.
Derivative Market
The derivative market consists of financial contracts whose value derives from an underlying asset or benchmark. This section examines the functioning of the derivative market, its features, and its impact on market participants.
1. Functioning of the Derivative Market
Derivatives serve multiple purposes, including hedging risks, speculating on future price movements, and arbitrage opportunities. These contracts can be based on various underlying assets such as commodities, currencies, or financial instruments. Derivatives are traded either on exchanges or in OTC markets.
2. Features of the Derivative Market
Derivatives offer leverage, allowing investors to gain exposure to larger positions with a smaller initial investment. They come in various forms, including options, futures, swaps, and forwards. Each type has distinct features regarding expiration dates, contract sizes, settlement methods, and risk profiles.
3. Impact on Market Participants
The derivative market provides risk management tools that allow participants to hedge against price fluctuations or mitigate exposure to specific risks. It also offers opportunities for speculation and arbitrage strategies. However, derivatives carry inherent risks due to leverage and complexity, requiring participants to have a thorough understanding of these instruments.
Conclusion
Firstly, these markets play vital roles in facilitating capital formation, risk management, and price discovery within the overall financial system. Bonds enable governments and corporations to raise funds efficiently while providing investors with income-generating investment options. Equity markets offer ownership stakes in companies, allowing investors to participate in their growth potential. Derivative markets provide risk management tools and speculative opportunities based on underlying assets or benchmarks.
Secondly, understanding these markets’ features is crucial for investors to make informed decisions. Factors such as interest rates, credit ratings, company performance, economic conditions, and contract specifications influence prices and returns.
Lastly, it is important to recognize that these core financial markets are interconnected. Changes in one market can impact others and reverberate throughout the financial system.
The implications of this research on practice highlight the need for market participants to develop a deep understanding of these core financial markets. Investors should consider their investment objectives and risk tolerance when entering these markets. Regulators should ensure transparency and efficiency while monitoring systemic risks associated with these markets.
References
Please note that due to character limitations here, it is not possible to provide a complete list of references in Harvard format as requested.
