The marketers made use of a variety of strategies
The marketers made use of a variety of strategies meant to augment assets and increase market allocation. This attempt was supplemented by the continuous notion that it is easy to gain revenue from the stock market. The knowledge now easily accessible regarding resources has amplified considerably . The equipment and data readily available makes it simple to continuously operate among finances, relatives and even private collaterals.
While this data is easily accessible and hypothetically exact, it covers-up as understanding to a lot of shareholders. But it must be considered that unproven and raw statistics alone, for the mainstream of investors, can only take them so much into making an learned financial decision. Market Liquidity. Liquidity is significant in calculation since it is concerned with the amount at which assets are exchanged and it plays a very important role in financial exchange markets.
When the liquidity of the market becomes deprived the price will diverge from the true value (Robert 1995). Literature that talks about liquidity and transaction costs as reputably hard to measure abound. Studies conducted by O’Hara and Stoll (2000), also by Amihud and Mendelson (1986) and Chordia, Roll and Anshuman (2001) all made an effort to list the various functions
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Datar, Naik & Radcliffe (1998), and Chordia, Roll and Subrahmanyam (2002) also did the same. Kyle (1985) disputes that market liquidity include three contractual features: the rate of liquidating a location over a small period, the capability to vend or buy a large number of assets with the least disturbance effects to the market price, and the susceptibility of prices to recuperate from an arbitrary uninformed surprise to the market.
In this case the liquidity lean to vary across time; the liquidity is optimistically correlated with the asset market cycle. Jones (2002) hit upon that the liquidity and operation expenditure varieties have more prognostic influence than the payment capitulate for United States. Furthermore, the world deprived liquidity was pointed out as one of the key motivation that prevents alien investors from investing in emerging markets.
Liquidity measure considerably predicts future proceeds. Conventionally liquidity is calculated by capturing the quantity of the dealings, furthermore, the proposed enquire swell is a familiar liquidity pointer and upon calculation of liquidity as an occupation of price transformation for dissimilar charges this is named as the liquidity supply schedule (LSS). THE ECONOMY Washington Times (2006) reports that Dubai’s economy grew by 16 percent in 2005.
The country’s Economic Development Department estimated that the economy of Dubai is estimated to be worth $37 billion. This emirate beat the growth rate of China which is pegged at 8. 5 percent, Mohammed Ali Alabbar reported to Washington Times. The emirate’s primary industry is Petroleum, and it will be evident that the wealth gained from the primary industry is devoted to resource development and social services for the seven emirates. Abu Dhabi and Dubai primarily deals with the Production of Petroleum.
Petroleum gains and manufacturing expansion is correlated with each other and is restricted to qualified labour force and raw materials the country currently possesses. The UAE Gross Domestic Product (GDP) increased in 2004 by 5. 7 percent which was valued at $63. 67 Billion. A total of 38 percent growth was noted in comparison to the 34 percent growth in 2002. Dubai aside from their petroleum industry also focuses on the development of the country’s tourism and real estate industries.