Master of commerce Facilitator: Ruhina Karim

Investment Analysis ID:11637770

CHARLES STURT UNIVERSITY

(CAMBODIA)
School of Accounting and Finance

Assessment I
Subject Coordinator:
Professor. Ruhina Karim
Student name:
Chamnan Nop
ID:
11637770

ID11637770 Chamnan Nop

Master of commerce Facilitator: Ruhina Karim

Investment Analysis ID:11637770

1. Answer:

The financial market has a vital role for developing in economies to provide source
information reflect the investors evaluate in current performance and future prospective.
Moreover, Ethics is very important in financial because prevent cheating from investors. Role
of the investors wants the clients to success also hope the stock price to get maximized wealth
for their shareholder. Those stock markets encourage capital to their firm appear for the best
prospects so understanding the own risk help investment portfolio prospective to protected.
Nevertheless, many well professional analyze the operation share trade on the stock market
very careful to provide collective judgment.

For example 1: Bernard Lawrence Madoff is a former market in American and the founder a
penny stock brokerage since 1960. He was an educated person and power experienced in the
individual respectability and responsible the most powerful in financial stock security of the
NASDAQ stock market provide investment adviser, financer and stockbroker. He was
sentenced in jail 150 years and forfeiture about 17billion US. The confess operators of the
largest security fraud of amount 64.8 billion US in his clients’ accounts 4,800 due November
30, 2008. He engaged misreporting in small financial losses. He was accused 65 billion dollar
investments was destroyed in creating Ponzi scheme losses in invest over 15 years. We also
know nobody success without fail. It is the reason market stock usually make mistakes. The
price also changes by the market condition so included the gain or loss. Investigate suppose
that Accountant and Auditor are protecting the public interest. It means Bernard Lawrence
Madoff had planned to fail trading strategies for taking their money of the new clients and
paying it out existing client. Madoff is the certified professional investment that easy to trust
of personal gain.

For example 2, Amazon which the company big six in the United State technology firm. The
business has created the people work and strengthen the economies to make work well and
create wealth. This Tech firm has been named Fair Tax Mark that group tax transparency. The
firm accused of evasion tax by shifting revenue and profit for low tax countries and tolerate for
delaying taxes of payment. Amazon had achieved revenue of 960 billion dollars and profit
about 26.8billion dollar and declared paid tax about 3.4billion US on tax income decade despite
that effective tax rate 12.7%. Amazon said the during 2010-2018 effective tax rate on profit
24% so the profit margin is low and the result must be paid cash tax less. Accounting in Amazon
is complicated because the firm had combined tax bill 83 million over the last ten year of two

ID11637770 Chamnan Nop

Master of commerce Facilitator: Ruhina Karim

Investment Analysis ID:11637770

UK subsidiaries between Amazon web service and Amazon UK service. In a statement,

Amazon is the company that Government writes tax law to encourage paying the tax due
investing many billion create jobs and infrastructure responsibilities to the society they will
weaken the support of economies work that made lower cash tax rate. By Amazon accused
corporation avoiding tax 100 billion dollars of global tax.

2. Answer

Trading in the financial market is very important can be very time consuming to find a
broker to advise clearly where an investor would probably decide. Role of the broker is the
specialized person advice investors about how much money could invest, execute the trade,
advice on listed and unlisted investment, provide customized investment plan, and monitor the
investment portfolio. Stockbrokers have to register in financial conduct authority by regulation
and they work in the financial industry are expect fluent in bonds, stock and option. The benefit
of a broker protects the interest of both member and clients. They also help clients to manage
the risk financial and management market when broker willing to quote on sell and buy prices
are trading to make the profit off the bid-ask spread, expert advice, build relationship, peace
mind, responsibility and security. Broker has two types are a full broker and a discount broker.
A full-service broker for a new issue of securities that call primary market help you assess
the current finance and perspective set the goal in future for which investment choose.
For example, Joseph Palmer & Sons broker is the company established since 1872, has been
investing for over 140 years. It recognized the financial expert over 20 years in trading forex,
head office in Australia. It provides the services investment management on advising the equity
investment, and assist value in estates and portfolio, information on a new float, Discretionary
Accounts Management and financial advice on buying selling order, direct hand on involving
with clients and financial and retirement planning. The clients have care by Joseph Palmer &
Sons broker with security and have rights to be advice about any interest with reasonable to
expect the securities influence.
Discount broker no advice and no offering recommendation and carried out trading share
order reduce commission rate so the investor knowledge could be confident with share market
regarding the proper decision. Discount broker (online broker) trading for lower fees with less
capital.
For example, eToro broker is the best company online established in 2007. Head office Cyprus,
The firm has clients around the world over 140 countries which well knowledge the top analyst
bring the latest news and provide good to customers make them more comfortable trust and
accuracy. It is the world leader always looking to improve and maintain a competitive
advantage. It provides competitive offers for Forex, Stock, CFDs, Commodities, Social trading,
Index-Based funds.
The third-party platform feature which traders want to copy the trades of profitable traders and
follow risk control rules are easy to access to markets lower the risk. The firm has the strategy
of successful by expert advisers and accessibility to allow all retail customers holder trading
by a mimic. This broker has provided the service to assist the customer in making cost-effective.
For trading account customer must open an account by providing information for summited to
verify identities and trading account by Plaid to connect a bank. Minimum deposit only 200 for
IC Markets. According to ASX regulation, brokers are regulated not to fraud from customers
so working capital from agent and clients fund must be separated.

ID11637770 Chamnan Nop

Master of commerce Facilitator: Ruhina Karim

Investment Analysis ID:11637770

Answer3

Concept risk versus reward are assets with low return should have low risk and assets
with high risk also high return. Risk reward market generally looks for a 1:3 help the investor
keep loss to bare minimum and protect the risk of losing money in the market.
Risk define in financial as the chance outcome gain also include the possibility of losing some
or all amount invest. Regarding investment always involved some different risk. Such as
business risk, financial risk, liquidity risk and exchange rate risk.
Generally, reward investment expects the greater high risk is the greater high return to
make money. On the other hand, if investors likely take a small risk their income small reward
also and risk-averse will demand compensation for uncertainty or risk. Starting the business
investors must understand two keys are:
1. Define the product potential return.
2. Make sure you accept a level of risk of product you would invest.
For example, Commonwealth Bank as part of leading Innovation Lab and Markets
collaboration create, allocate, transfer and manage a bond, called ‘Bondi-i' via a distributed
ledger. Four main types of investment of products are share investment, property investment,
cash investment and bond investment each with distinct characteristics, risks and benefits.
1. Share investment considers a growth investment suit for long term willing and able
to withstand market ups and downs. The price also changes by the market condition so included
the gain or loss. The products are also known as equities the higher return than other assets and
the type of investment is the highest risk.
2. Property investment is real estate investment purchase to earn the return which
considers a growth investment the price of a house can rise and also fall. This investment in
buying a property through a property investment fund. The value is the highest risk, highest
return.
3. The cash investment includes every bank account high interest saving on the account
and fixed-term deposit earn the interest income fixed is protected from fluctuation in the
investment market. That is no chance of capital growth so carry the lowest risk, the lowest
return.
4. Bond investment is known as defensive investment generate income rather than
growth. The bond is the statement of debt agreement between debtor and creditor to pay off the
principle included the coupon in a predetermined time. Bond is a capital market that contains
the risk not guaranteed by the bank which company or government borrow from investor by
issue shares. The benefit of the bonds get fixed income of regular coupon, gain on price
appreciated and safe guarantee by the government and could sell quickly carry the lowest risk,
the lowest return.
Equity is the amount clients owe on the loan and differences between the market value
of the properties.

ID11637770 Chamnan Nop

Master of commerce Facilitator: Ruhina Karim

Investment Analysis ID:11637770

CBA Risk reward graph

Refer the graph above rough breakdown of four types of products with varying levels of risk
and reward.
As you can see in the graph shown assets higher the risk is higher the reward.
Share investment and property investment are the highest risks, highest return.
Cash investment and bond investment are the lowest risk, the lowest return.

Reward (return)

Share Investment

Property Investment

Cash Investment

Risk-free return

Bond Investment

Zero

Risk

ID11637770 Chamnan Nop

Master of commerce Facilitator: Ruhina Karim

Investment Analysis ID:11637770

Reference

1. eToro Review, eToro allows U.S. clients to trade cryptocurrencies and engage in
social trading retrieved from https://www.investopedia.com/etoro-review-
5072808 on January 23, 2021
2. Bodie, Kane & Marcus, (2014), Investments, 10th ed., New York, NY, McGraw-
Hill Education
3. (2009) “Plea Allocution of Bernard L. Madoff,”
http://online.wsj.com/public/resources/documents/20090315madoffall.pdf, March
12, 2009, accessed March 12, 2009.
4. New study deems Amazon worst for 'aggressive' tax retrieved from
avoidancehttps://www.theguardian.com/business/2019/dec/02/new-study-deems-
amazon-worst-for-aggressive-tax-avoidance
5. Joseph Palmer & Sons www.jpalmer.com.au
6. https://www.finder.com.au/etoro-launches-zero-brokerage-share-trading
7. Bond CommonWealth Bank retrieved from
https://www.commbank.co.id/en/personal/invest_2/bonds on January 26, 2021
8. https://www.commbank.com.au/content/dam/commbank/about-
us/shareholders/pdfs/annual-reports/CBA-2019-Annual-Report.pdf
9. https://en.wikipedia.org/wiki/Commonwealth_Bank
10. https://www.commsec.com.au/education/learn/investing-basics/what-are-the-
different-types-of-investments.html

ID11637770 Chamnan Nop