1. Analyze the Abu Dhabi stock Markets and Dubai Financial Market by describing the nature and the development of these two Financial markets in details.
2. Explain the difference between types of financial markets used in UAE, and how these differences are used for trading securities and the types of securities traded on those markets.
3. Evaluate the advantages and disadvantages of long-term capital market for rising corporate finance.
4. Compare between the different types of financial markets securities and what the major types that are used in both ADX and DFM.
5. Determine whether both markets use any derivatives security in trading and determine the appropriate hedging strategies using future markets for reducing financial risk and evaluate the performance of different types of derivatives.

Just Answer this two Question Please

Answer1. Securities and Commodities Authority is an independent body. Abu Dhabi Securities Exchange and Dubai Financial Market operate under it. The UAE established Securities and Commodities Authority (SCA) in 2000 to achieve the following objectives: 1. To provide the opportunity to invest savings and funds in Securities and Commodities in a manner that serves the interest of the national economy, secures the integrity and accuracy of transactions, ensures interaction of the forces of supply and demand in order to determine prices and protection of investors by establishing the bases for sound and just dealings between the various investors 2. To develop investment awareness by conducting studies and presenting recommendations 3. To work to secure financial and economic stability Two main financial securities exchange markets operate in the UAE under the Securities and Commodities Authority (SCA): Abu Dhabi Securities Exchange Dubai Financial Market Both markets are linked to the Emirates Securities Market (ESM). The UAE's financial markets deal primarily in equities, securities, bonds, futures, mutual funds, commodities, currencies, metals, stones, derivatives, and Sukuk (Islamic bonds). Abu Dhabi Securities Exchange (ADX) ADX is a stock exchange in Abu Dhabi, started in 2000 with the purpose of providing funds investment opportunities in securities for the benefit of the national economy. It aims at developing investment awareness to ensure that savings are invested in productive sectors, and to maintain financial and economic stability. ADX deals in equities, funds and bonds. dubai Financial Market (DFM) Dubai Financial Market (DFM) was established as a public institution in 2000. As decided by the Executive Council Decree of 2005, DFM was set up as a Public Joint Stock Company. 20 per cent of DFM's shares offered for public subscription, and that was the first of its kind in the region. It is the first financial market in the world to comply with Islamic Sharia rules. DFM deals in equity instruments, debt instruments, Exchange Traded Funds (ETFs) and securities lending and borrowing. Answer 2. Types of financial markets used in UAE UAE financial markets 1. Abu Dhabi Securities Exchange (ADX) ADX is a stock exchange in Abu Dhabi, started in 2000 with the purpose of providing funds investment opportunities in securities for the benefit of the national economy. It aims at developing investment awareness to ensure that savings are invested in productive sectors, and to maintain financial and economic stability. ADX deals in equities, funds and bonds. 2. Dubai Financial Market (DFM) Dubai Financial Market (DFM) was established as a public institution in 2000. As decided by the Executive Council Decree of 2005, DFM was set up as a Public Joint Stock Company. 20 per cent of DFM's shares offered for public subscription; and that was the first of its kind in the region. It is the first financial market in the world to comply with Islamic Sharia rules. DFM deals in equity instruments, debt instruments, Exchange Traded Funds (ETFs) and securities lending and borrowing. 3. Dubai International Financial Centre (DIFC) DIFC is a free zone established in 2002 by Dubai Government to provide physical, market and financial infrastructure required to set up and operate a thriving commodities marketplace. Several leading banks, asset management companies, insurance companies, law services and consulting companies have set up offices in DIFC. DIFC aims to establish Dubai as the global financial hub. 4. Dubai Multi Commodities Centre (DMCC) DMCC started in 2002 as a part of Jumeirah Lakes Towers free zone and a strategic initiative of the Dubai Government with the purpose of providing physical, market and financial infrastructure required to set up and operate a thriving commodities marketplace. DMCC trades in four main commodity groups: gold, diamond, pearl and tea. 5. Dubai Pearl Exchange (DPE) DPE is an initiative of DMCC for supporting the global trade of both natural and farmed pearls. 6. Dubal Diamond Exchange (DDE) DDE is a DMCC platform and a Dubai Government initiative and the only bourse in the Middle East affiliated with the World Federation of Diamond Bourses (WFDB). DDE has a unique market and platform for trading and exchange of diamonds and precious gems. Located in the Almas Tower in Jumeirah Lakes Towers free zone, it is home to many regional and international precious gems companies. 7. Dubal Gold & Commoditles Exchange (DGCX) Dubai Gold & Commodities Exchange (DGCX) commenced trading in November 2005 as the region's first commodity derivatives exchange and has become today the leading derivatives exchange in the Middle East. It deals in metals, currencies, hydrocarbons and equities. DGCX is a subsidiary of Dubai Multi Commodities Centre (DMCC). It is an electronic platform for trading commodity and currency derivatives and has 267 members from all around the world. 8. Dubal Mercantile Exchange (DME) DME was launched in June 2007 with the goal of bringing fair and transparent price discovery and efficient risk management to the East of Suez. It deals in energy futures and commodities. It lists the Oman Crude Oil Futures Contract (DME Oman) as its flagship contract, providing the most fair and transparent crude oil benchmark for the region. 9. NASDAQ Dubai NASDAQ Dubai is the Middle East's international financial exchange. It combines regional and international wealth, making it a globally unique platform for companies to raise money and investors to find exciting opportunities. NASDAQ Dubai listed companies may trade their securities globally which gives an instant recognition and visibility around the world. NASDAQ deals in: a. equities b. Sukuk and Islamic products c. conventional bonds d. futures and derivatives e. exchange-traded funds f. exchange-traded commodities 10. Real Estate Investment Trusts ( REITS). NASDAQ Dubai is located in Dubai International Financial Centre (DIFC) and regulated by Dubai Financial Services Authority. Dubai Financial Market holds two-thirds and Borse Dubai holds one- third of the shares in NASDAQ Dubai. Answer 3. Advantages and disadvantages of long-term capital market for rising corporate finance. Borrowing money to finance the operations and growth of a business can be the right decision under the proper circumstances. The owner doesn't have to give up control of his business, but too much debt can inhibit the growth of the company. Corporate bonds are used by many companies to raise funding for large-scale projects - such as business expansion, takeovers, new premises or product development. They can be used to replace bank finance, or to provide long-term working capital. Advantages of issuing corporate bonds Bonds can be a very flexible way of raising debt capital. They can be secured or unsecured, and you can decide what priority they take over other debts. They can also offer a way of stabilizing your company's finances by having substantial debts on a fixed-rate interest. This offers some protection against variable interest rates or economic changes. Other advantages of using bonds to raise long-term finance include: 1. not diluting the value of existing shareholdings - unlike issuing additional shares 2 enabling more cash to be retained in the business - because the redemption date for bonds can be several years after the issue date Disadvantage of issuing corporate bonds There are also some disadvantages to issuing bonds, including: 1. regular interest payments to bondholders - though interest may be fixed, the interest will usually have to be paid even if you make a loss 2 the potential for your business' share value to be reduced if your profits decline - this is because bond interest payments take precedence over dividends 3. bondholder restrictions - because investors are locking up their money for a potentially long period of time, they can impose certain covenants or undertakings on your business operations and financial performance to limit their risk 4. ongoing contact with investors can be somewhat limited so changes to terms and conditions or waivers can be more difficult to obtain compared to dealing with bank lenders, who tend to maintain a closer relationship 5. having to comply with various listing rules in order to increase the tradability of the bonds listed on an exchange - particularly, an obligation to make information on the company publicly available at the issue stage and regularly during the life of the bond Answer1. Securities and Commodities Authority is an independent body. Abu Dhabi Securities Exchange and Dubai Financial Market operate under it. The UAE established Securities and Commodities Authority (SCA) in 2000 to achieve the following objectives: 1. To provide the opportunity to invest savings and funds in Securities and Commodities in a manner that serves the interest of the national economy, secures the integrity and accuracy of transactions, ensures interaction of the forces of supply and demand in order to determine prices and protection of investors by establishing the bases for sound and just dealings between the various investors 2. To develop investment awareness by conducting studies and presenting recommendations 3. To work to secure financial and economic stability Two main financial securities exchange markets operate in the UAE under the Securities and Commodities Authority (SCA): Abu Dhabi Securities Exchange Dubai Financial Market Both markets are linked to the Emirates Securities Market (ESM). The UAE's financial markets deal primarily in equities, securities, bonds, futures, mutual funds, commodities, currencies, metals, stones, derivatives, and Sukuk (Islamic bonds). Abu Dhabi Securities Exchange (ADX) ADX is a stock exchange in Abu Dhabi, started in 2000 with the purpose of providing funds investment opportunities in securities for the benefit of the national economy. It aims at developing investment awareness to ensure that savings are invested in productive sectors, and to maintain financial and economic stability. ADX deals in equities, funds and bonds. dubai Financial Market (DFM) Dubai Financial Market (DFM) was established as a public institution in 2000. As decided by the Executive Council Decree of 2005, DFM was set up as a Public Joint Stock Company. 20 per cent of DFM's shares offered for public subscription, and that was the first of its kind in the region. It is the first financial market in the world to comply with Islamic Sharia rules. DFM deals in equity instruments, debt instruments, Exchange Traded Funds (ETFs) and securities lending and borrowing. Answer 2. Types of financial markets used in UAE UAE financial markets 1. Abu Dhabi Securities Exchange (ADX) ADX is a stock exchange in Abu Dhabi, started in 2000 with the purpose of providing funds investment opportunities in securities for the benefit of the national economy. It aims at developing investment awareness to ensure that savings are invested in productive sectors, and to maintain financial and economic stability. ADX deals in equities, funds and bonds. 2. Dubai Financial Market (DFM) Dubai Financial Market (DFM) was established as a public institution in 2000. As decided by the Executive Council Decree of 2005, DFM was set up as a Public Joint Stock Company. 20 per cent of DFM's shares offered for public subscription; and that was the first of its kind in the region. It is the first financial market in the world to comply with Islamic Sharia rules. DFM deals in equity instruments, debt instruments, Exchange Traded Funds (ETFs) and securities lending and borrowing. 3. Dubai International Financial Centre (DIFC) DIFC is a free zone established in 2002 by Dubai Government to provide physical, market and financial infrastructure required to set up and operate a thriving commodities marketplace. Several leading banks, asset management companies, insurance companies, law services and consulting companies have set up offices in DIFC. DIFC aims to establish Dubai as the global financial hub. 4. Dubai Multi Commodities Centre (DMCC) DMCC started in 2002 as a part of Jumeirah Lakes Towers free zone and a strategic initiative of the Dubai Government with the purpose of providing physical, market and financial infrastructure required to set up and operate a thriving commodities marketplace. DMCC trades in four main commodity groups: gold, diamond, pearl and tea. 5. Dubai Pearl Exchange (DPE) DPE is an initiative of DMCC for supporting the global trade of both natural and farmed pearls. 6. Dubal Diamond Exchange (DDE) DDE is a DMCC platform and a Dubai Government initiative and the only bourse in the Middle East affiliated with the World Federation of Diamond Bourses (WFDB). DDE has a unique market and platform for trading and exchange of diamonds and precious gems. Located in the Almas Tower in Jumeirah Lakes Towers free zone, it is home to many regional and international precious gems companies. 7. Dubal Gold & Commoditles Exchange (DGCX) Dubai Gold & Commodities Exchange (DGCX) commenced trading in November 2005 as the region's first commodity derivatives exchange and has become today the leading derivatives exchange in the Middle East. It deals in metals, currencies, hydrocarbons and equities. DGCX is a subsidiary of Dubai Multi Commodities Centre (DMCC). It is an electronic platform for trading commodity and currency derivatives and has 267 members from all around the world. 8. Dubal Mercantile Exchange (DME) DME was launched in June 2007 with the goal of bringing fair and transparent price discovery and efficient risk management to the East of Suez. It deals in energy futures and commodities. It lists the Oman Crude Oil Futures Contract (DME Oman) as its flagship contract, providing the most fair and transparent crude oil benchmark for the region. 9. NASDAQ Dubai NASDAQ Dubai is the Middle East's international financial exchange. It combines regional and international wealth, making it a globally unique platform for companies to raise money and investors to find exciting opportunities. NASDAQ Dubai listed companies may trade their securities globally which gives an instant recognition and visibility around the world. NASDAQ deals in: a. equities b. Sukuk and Islamic products c. conventional bonds d. futures and derivatives e. exchange-traded funds f. exchange-traded commodities 10. Real Estate Investment Trusts ( REITS). NASDAQ Dubai is located in Dubai International Financial Centre (DIFC) and regulated by Dubai Financial Services Authority. Dubai Financial Market holds two-thirds and Borse Dubai holds one- third of the shares in NASDAQ Dubai. Answer 3. Advantages and disadvantages of long-term capital market for rising corporate finance. Borrowing money to finance the operations and growth of a business can be the right decision under the proper circumstances. The owner doesn't have to give up control of his business, but too much debt can inhibit the growth of the company. Corporate bonds are used by many companies to raise funding for large-scale projects - such as business expansion, takeovers, new premises or product development. They can be used to replace bank finance, or to provide long-term working capital. Advantages of issuing corporate bonds Bonds can be a very flexible way of raising debt capital. They can be secured or unsecured, and you can decide what priority they take over other debts. They can also offer a way of stabilizing your company's finances by having substantial debts on a fixed-rate interest. This offers some protection against variable interest rates or economic changes. Other advantages of using bonds to raise long-term finance include: 1. not diluting the value of existing shareholdings - unlike issuing additional shares 2 enabling more cash to be retained in the business - because the redemption date for bonds can be several years after the issue date Disadvantage of issuing corporate bonds There are also some disadvantages to issuing bonds, including: 1. regular interest payments to bondholders - though interest may be fixed, the interest will usually have to be paid even if you make a loss 2 the potential for your business' share value to be reduced if your profits decline - this is because bond interest payments take precedence over dividends 3. bondholder restrictions - because investors are locking up their money for a potentially long period of time, they can impose certain covenants or undertakings on your business operations and financial performance to limit their risk 4. ongoing contact with investors can be somewhat limited so changes to terms and conditions or waivers can be more difficult to obtain compared to dealing with bank lenders, who tend to maintain a closer relationship 5. having to comply with various listing rules in order to increase the tradability of the bonds listed on an exchange - particularly, an obligation to make information on the company publicly available at the issue stage and regularly during the life of the bond