The impact of financial informations over per index

Company performances evaluation rated on capital market starts from the assumption that the company value is decisive determined by its financial variables and its growth potential, business risk, profitability, financial liquidity and flexibility as well as its capability to finance on its own its development projects. In the present study we wish to demonstrate the way of using the informations to take a decision for investing in stocks of the listed companies, considering the ratio between current price of one stock rated at the stock-market and the net benefit per stock (PER), as well as the way that this ratio is influenced by the company financial indexes, underlining some.performance, PER ratio, levier effect, profitability

THE CONSUMPTION AND THE CONSUMER IN THE ECONOMIC THEORY

The special complexity of the consumption imposes the mention that, in what follows, considering the criterion of the final destination of goods and services, the problem of the non-productive consumption of the population is being approached. Within the mechanism of the economic life, consumption has a central position, fulfilling various functions, determined by the mutual relationships with the different phases and processes of this mechanism, as well as by its own laws of development. Consumption gives finality to production, the usefulness of goods being recognized not only for having a specific material shape, but also because it satisfies a certain necessitythe income effect; the substitution effect; the anticipation effect; the irreversibility of consumption; the demonstration and imitation consumption;

The management of portfolio risk on the Romanian capital market

In a society strongly dependent and intensively industrialized such like the one we live in, risk cannot be an isolated event, but the consequence of some facts that determine its transfer from one point of the planet to another. As a result to the general tendency of increasing the volatility of the financial markets but also to the increasing complexity of the global financial system there was registered a continuous interest in the domain of risk management. Within the article there are being presented methods of reducing risk for financial titles portfolio, coming to support the investors that want a greater security when making the portfolio. We will further present the way in which diversity can reduce risk, but at the same time in order to better understand the complete effect of diversity we will show the way in which a portfolio risk depends on an individual risk of each component title, exemplifying some titles quoted at Bucharest Stock Exchange.peer-reviewe

Market Disequilibrium and Ways to Correct Them by the Macroeconomic Policies

In the general economic language any rise in prices is called inflation but it is necessary to make a clear distinction between the causes determining a single non-continuous rise in prices and other circumstances that may cause a continuous and widespread growth of them In the evolution of real economy various events may occur that are able to cause a rise in prices on the whole market These are called inflation shocks In order to analyze these issues more deeply we will suppose that the economy is in a long-term macroeconomic balance and currency exchange rate operates under a flexible regime Also in the initial state the price level is relatively constant and gross domestic product GDP is at its potential leve

ASPECTS REGARDING THE INFLUENCE OF VOLATILITY ON THE OPTION’S PRICE

The most important advantage of the option transactions resides in the fact that it offers, through the existing relations between the derivatives market and the spot market, improved solutions of portfolio management, the put options constituting an insurance policy against the decrease of the prices, and the call options acting as a guarantee for the purchase of the support asset at the pre-set price. The volatility represents a measure of the size of the price fluctuations of the support asset and thus it can be assimilated with a random variable. The analysis of the essential factors that influence the price of the option contracts has demonstrated that the volatility of the support asset's price shows how risky it is for it to be one of the main and most difficult to determine factor, because this is the only parameter that is not known exactly at the moment of the contract conclusion. Under these conditions, due to the profound importance of volatility in the option evaluation and due to the fact that volatility is difficult to estimate, observe or predict, we must model it as a random variable for many of the option contracts for which the model of constant volatility (as the Black Scholes model is) is inadequate..options contract, historical volatility, stochastic volatility, exercise price,standard deviation

ANALYSIS AND MODELATION OF THE CONSUMER’S BEHAVIOUR OF FINANCIAL PRODUCTS ON THE ROMANIAN CAPITAL MARKET

The study of the consumers’ behavior of financial products is based upon the hypothesis according to which they behave rationally that is they try to aim their objectives at the highest level possible, taking into account the restrictions that they are forced to face. Having this context the basic idea that guides the consumers’ behavior of financial products is maximizing the forecasted utility. Utility will be maximized when a certain combination of forecasted gains and risks is preferred in report with the other combinations. The consumers of financial products establish their objectives in the conditions of the estimated risk and profitability and they have to make a choice taking into account the uncertainty conditions.consumer behavior, financial product, utility function, risk, uncertain

THE FINANCIAL MANAGEMENT OF THE SMALL AND MEDIUM SIZED COMPANIES IN ROMANIA

The objective of the paper is to identify the possibilities and promotion limits of the financial management in the small and medium sized companies in Romania starting from the concepts expressed in the literature and expressed in the concrete situations in the Romanian economy practice. We have also presented the role of the financial management in small and medium sized companies and the risk management objective of financial management considering that the risk is a fundamental component of a strategic and tactical decision. At the end of the paper we have presented the conclusions stemming from the study, the basic one being that there is a beginning in the promotion and applicability of theoretical elements of financial management in small and medium sized companies in Romania together with the European integration.small and medium sized companies, financial management, investment, risk, economic profitability

The Perspective of Cluster Ranking Analysis in the Development of Food Safety Measures

Food safety policies have gained considerable importance in recent years, food safety being one of the indicators that illustrates the standard of living and quality of life within a nation state. In order to assess food security, we analyzed the Global Food Security Index (GFSI) that, economically, is based on GDP, degree of poverty and agricultural production, extending also to areas such as government and public policies, which are usually not directly included in food safety indicators or generating factors. Considering the importance and impact of food safety, starting from the theoretical concepts, from the current state of food safety in Europe, presented by the means of GFSI and its components, we developed a set of measures based on the grouping (correlation) of states following the analysis of hierarchical ranking of clusters. To analyse clusters hierarchical ranking the food safety indicators were used as input, dependent data. As an independent variable, with a strong influence on all the others, determined by means of multiple linear regression, we considered GDP/inhabitant at the level of each analysed state. The design of the set of measures considered the correlation that can be established among the various GFSI indicators that influence and generate the current state of food security in different European countries and the influence these indicators can have on maintaining or improving this state

CONSIDERATIONS REGARDING THE CALCULATION AND EVOLUTION OF LABOR PRODUCTIVITY IN TERMS OF COMBINING TECHNICAL FACTOR - CAPITAL

The efficiency of labor, as evidenced by average productivity indicator is linked to the existence of social conditions which relate to education, qualifications and experience of staff, division of labor employment, labor discipline, but also the existence of objective conditions, technical and technological, as modernization of production and the availability of equipment to employees. The content of the article we will highlight an analysis of the calculation, and the evolution of labor productivity in terms of the elements related to the value of labor used in relation to operational staff of the company. We will also reveal the evolution of labor efficiency and profit when the company capital factor is constant, given the need to increase production

The Management of Portfolio Risk on the Romanian Capital Market

In a society strongly dependent and intensively industrialized such like the one we live in, risk cannot be an isolated event, but the consequence of some facts that determine its transfer from one point of the planet to another. As a result to the general tendency of increasing the volatility of the financial markets but also to the increasing complexity of the global financial system there was registered a continuous interest in the domain of risk management. Within the article there are being presented methods of reducing risk for financial titles portfolio, coming to support the investors that want a greater security when making the portfolio. We will further present the way in which diversity can reduce risk, but at the same time in order to better understand the complete effect of diversity we will show the way in which a portfolio risk depends on an individual risk of each component title, exemplifying some titles quoted at Bucharest Stock Exchange.