In the world of investing and trading, in order to have a definite advantage and constantly create profit, you need to have a strategic approach. Generally speaking, the two main schools of thought and strategies in financial markets are fundamental and technical analysis. Fundamental and technical analysis differ in several aspects, such as the way of functioning and execution, the time horizon used, the tools used and their objective. These differences lead to certain advantages and disadvantages of each of the analyses. Fundamental and technical analysis are also a subject of critical reviews by the academic and scientific community and many of these reviews concern the methods of their application, i.e. the possibility of combining the two analyses and using them complementarily to fully utilize their strengths and advantages.
The credit ratings awarded by the credit rating agencies enable participants in financial markets to make the most optimal choice in respect of where to invest free money assets. The agencies evaluate the risk of investing in securities offered by issuers by awarding them a specific credit rating, which influences the rate of interest, the value and the yield from the securities they offer. The credit rating agencies have had a crucial influence on events within the financial markets and it is considered that they have firstly caused and then fuelled the financial crash of 2008. Due to their influence on heating up the debt crisis in the Eurozone, the European Union has issued a regulation that limits and redefines their activities with the purpose of recovering trust in financial markets and increasing the protection for investors. In this article, the authors explain the background to this regulation and explore its aims which can be summarised in the context of improving transparency, independence and accountability. Indeed, accepting the latter is key to restoring credibility.
Amongst economists there is a broad consensus that in order to
Interest-free banking system also known as Islamic banking, represents a system, different from the conventional, with instruments and mechanisms which perform the same function as classic credit-saving instruments. An important feature that separates interest-free concept from standard banking is: to preserve the main Islamic principle, which is the exclusion of interest in every possible form. In that direction, Islamic bankers created instruments that fit the interest-free concept. Many of interest-free credit instruments, over the last years, are increasingly used also by commercial banks, especially trade-based instruments, of which the most widespread and most used is Murabaha. The philosophy of its functioning is the exclusion of interest and its replacement with trading-mode of operation so the bank will not approve classic loans that need to be repaid, upgraded with interest, as is the case with commercial loans. In contrast of that, the bank will buy the asset due to which costumers requires a loan, and then sells the same asset to the costumer with higher (mark-up) price. The price is known in advance and does not change until the end of contract. Thus, costumers are protected from the risk of changing interest rates, which otherwise can affect the amount of debt and their ability to repay, but also have greater foresight about total costs for the loan. The use is not limited only to Islamic banks. Murabaha is popular and can be found as a financial instrument also in commercial banks, beyond the borders of Islamic countries. However, the success in implementing such banking practices varies from state to state, due to a number of obstacles in the tax regulations. Especially, VAT (value added tax), which causes double taxation for Murabaha financial instrument. Метин Акити Универзитет ФОН -Скопје, Република Македонија metin.akiti1@fon.mk Резиме: Бескаматниот банкарски систем познат и како исламско банкарство, претставува систем, различен од конвенционалниот, со инструменти и механизми кои ја вршат истата функција како и класичните кредитно-штедни инструменти. Важната карактеристика која го одвојува бескаматниот концепт од стандардното банкарство е: да се запази главниот исламски принцип а тоа е исклучување на каматата во секоја нејзина форма. Во таа насока, исламските банкари создадоа инструменти кои одговараат на концептот. Многу од бескаматните кредитни инструменти, во последните години, сѐ повеќе се користат и од страна на комерцијалните банки, особено инструментите засновани на продажба, од кои најраспространетиот и најмногу користен ѐ Мурабаха. Филозофијата на неговото функционирање ѐ исклучување на каматата и нејзина замена со трговски модел, така што банката нема да одобрува класични заеми, кои треба да бидат вратени оплодени со камата, како што е случај со комерцијалните заеми. Наспроти тоа, банката ќе го откупи средството поради кое клиентот побарува заем и потоа ќе го продаде на клиентот по повисока цена која однапред е позната и која не се менува до крајот на траење на договорот. На тој начи...
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