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Globalization of Financial Risks and Evaluation of Common Stocks

Globalization of Financial Risks and Evaluation of Common Stocks

Dilaysu Cinar
Copyright: © 2014 |Pages: 10
ISBN13: 9781466646353|ISBN10: 1466646357|EISBN13: 9781466646360
DOI: 10.4018/978-1-4666-4635-3.ch015
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MLA

Cinar, Dilaysu. "Globalization of Financial Risks and Evaluation of Common Stocks." Global Strategies in Banking and Finance, edited by Hasan Dinçer and Ümit Hacioğlu, IGI Global, 2014, pp. 231-240. https://doi.org/10.4018/978-1-4666-4635-3.ch015

APA

Cinar, D. (2014). Globalization of Financial Risks and Evaluation of Common Stocks. In H. Dinçer & Ü. Hacioğlu (Eds.), Global Strategies in Banking and Finance (pp. 231-240). IGI Global. https://doi.org/10.4018/978-1-4666-4635-3.ch015

Chicago

Cinar, Dilaysu. "Globalization of Financial Risks and Evaluation of Common Stocks." In Global Strategies in Banking and Finance, edited by Hasan Dinçer and Ümit Hacioğlu, 231-240. Hershey, PA: IGI Global, 2014. https://doi.org/10.4018/978-1-4666-4635-3.ch015

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Abstract

Risk can be defined as uncertainty about the events that will occur in the future. Risks are encountered in all areas of life, and become more important when it comes to financial markets. Risk in financial markets is defined as investment securities. If the investment vehicle is government bonds or treasury bills, they are considered to be free of risk. Because of the sudden changes in exchange rates in the process of globalization or fluctuations in interest rates influencing the cash flows of companies, most companies consider hedging as a viable part of the globalization strategy. Risk management policies to ease problems and disasters, which may arise from the use of instruments. The stock market serves as a bridge between economic activity and finance under favor of functions such as reducing the risk of investment, and it meets the capital needs for companies. For this reason, the development of stock markets plays an important role for the global economy and finance. Thus, the aim of this chapter is to introduce financial risks and their effect on common stocks.

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