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In order to create a solid understanding of Financial institutions and markets it is important to start with the definition of finance. Finance is generally defined as fund management. But that definition is quite vague as the topic of finance is much more detailed. It is important to understand that there are several facets to finance that should be understood. One of the dominant facets of finance is based in the traditional loan that almost everyone has been a part of in one way or another.

The idea is that a consumer can get the money they need and an institution charges them a predefined interest rate on that money. The financial institution then makes its profit on the interest paid. The interest can be fixed, as in a fixed mortgage, or adjustable, as in an adjustable mortgage to name just a couple of examples. Further speaking on the many facets of finance, it is important to mention some of the many forms of investments.

Some of these include mutual funds, hedge funds, financial funds management strategies, bonds, publically traded stocks and investments. Anyone who works in finance or even is considering an investment must understand, or at least hire someone who understand and can explain the concept of risk and risk management. This facet of finance ties into accounting and the current economy.

The reason is that it is the economy that determines the interest rate based on the risk and reward of the loan. In the state of a loan, for example, it is then the responsibility of the firm or lender to keep track of the loans, their interest rates and forms of interest and finally the repayment. Loans are useless to a lender without repayment. . On a smaller scale, finance can be used to describe the financial situations of individuals. For example, financial skills are used to manage debt and plan for the future of that individual. On a larger scale, the many facets o finance are used to provide for the financial needs of the company and its employees. EXXONMOBILE CFO

Mr. Donald D. Humphreys, Don has been Senior Vice President and Treasurer of ExxonMobil Chemical Company, a subsidiary of Exxon Mobil Corp. since January 2006. Mr. Humphreys has also been Senior Vice President of Exxon Mobil Corp. since January 1, 2006, and serves as its Chief Financial Officer.

He served as Treasurer of Exxon Mobil Corp., since July 1, 2004 and also served as its Vice President and Controller fromJuly 1, 1997 to June 30, 2006 and also served as its Principal Accounting Officer. He served as Vice President of Esso Malaysia Berhad and Controller and Vice President of Esso Production Malaysia Inc. subsidiaries of Exxon Corp.

He joined Exxon Chemical Company in 1976. In 1986, after several assignments in Houston, Baton Rouge and Baytown, he transferred to Exxon Corporation in New York as Senior Financial Advisor in the Controller's Department. In 1988, he moved to Exxon Company, International as Financial Reporting Manager and later served as General Auditor. Since 1990, he served as Upstream Controller of Exxon Company, U.S.A. In 1993, he moved to Kuala Lumpur, Malaysia, as Financial Director of the Exxon companies in Malaysia.

He served as an Assistant Treasurer of Exxon Corporation since January 1997. He serves as a Director of Junior Achievement, Inc. Mr. Humphreys serves on the Board of Governors of the Oklahoma State University Foundation. In 2007, he was named a Distinguished Alumni of OSU and was inducted into the Spears School of Business Hall of Fame. He serves as a Director on the boards of Texas Parks and Wildlife Foundation and Council of the Americas. He is a member of Financial Executives International, the American Petroleum Institute and the Conference Board's Council of Financial Executives.

He served as a member of the Financial Accounting Standards Advisory Council. He served in the U.S. Army from 1972 to 1974. Mr. Humphreys earned a Bachelor of Science in Industrial Engineering and Management from Oklahoma State University in 1971 and an M.B.A. from the Wharton School of the University of Pennsylvania. According to the EMH, efficient is the accumulation and incorporation of all public knowledge into the price of the stock of that company. Efficiency is also when the value of the market reflects the actual value of the market. It is also said that the EMH is in place in order to prevent and detect any type of insider trading that may occur in the market.

The basis of the theory states that at any given time the price of the market reflect all publically available knowledge. It is very important that markets are efficient because if they aren’t the cost would be unrepresentative of the worth of that company. Behavioral economics is the use of behavior analysis to understand and even predict why and how an individual/market acts the way they do. Behavior economics has many implications in finance on a global scale as well as on a personal level. On a global level it can be used to understand the rational, reasoning and ever to predict trends in global markets. This can be used to create and ensure stability to the global economy.

The theory of EMH was introduced around the mid 1960’s. It initially was solely based on psychology. This later developed into an intense and widely used science in the finance industry. There are many sides and view of EMH. The critics have been against this on a theoretical and empirical level. The pure behaviorists have attributed the imperfections in the markets to a combination of cognitive biases.

These biases include; overconfidence, information bias, and other human errors. Another theory to explain the variation of markets is also the “random walk theory” that was created by Louis Bachelier. This theory states that prices of the financial markets evolve randomly and are not connected, but that they are independent of each other. Ultimately the conclusion by most is that no market can be completely efficient or completely inefficient, but that they are a mixture of the two.