Capital Markets: Domestic and International Capital markets involve two parties in the midst of a financial process. There are domestic markets (markets in the US) and there are foreign markets (international such as Japan and China) that investors put much faith in. The term capital market is the market for securities and where companies and governments raise long-term funds, usually longer than a year. The market itself includes the stock market and the bond market. The capital market also includes the primary market (new issues are distributed to investors) and the secondary market (current claimed securities are traded). Without a financial market in place, borrowers would have much difficulty finding lenders themselves. Capital markets promote and keep capitalism alive. The markets are a critical piece to may country’s economies and the bigger the markets the more potential for economic growth. It allows for consumers and businesses to have a share in the nation’s wealth. The availability of several ways to raise money needed is attractive because they can continue to strike into new sources of money over time. The goal of the markets is to increase investor confidence by more active participation. The markets require a free flow of information to run smoothly and efficiently and the internet can be used for up-to-the minute trade information. According to Wikipedia, The capital market is the market for securities, where companies and governments can raise long term funds. The capital market includes the stock market and the b... ... middle of paper ... ...rom http://en.wikipedia.org/wiki/Tokyo_Stock_Exhange Stocks Basics: Different Types of Stocks. (2008). In Investopedia [Web]. Investopedia ULC.Retrieved 09/11/2008, from http://www.investopedia.com/university/stocks/stocks2.asp (2005). Securities and Commodities Exchanges. Retrieved September 11, 2008, from Answers.com Web site: http://www.answers.com/topic/securities-and-commodities-exchanges Hayes, Samuel (2008). Understanding Capital Markets with Professor Samuel L. Hayes. Retrieved September 11, 2008, from Path to Investing Web site: http://www.pathtoinvesting.org/experts/capmkts/capmkts_011.htm (2008). US Securities and Exchange Commission. Retrieved September 11, 2008, from US Securities and Exchange Commission Web site: http://www.sec.gov/
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The stock market is a vehicle to invest money. It is where consumers buy and sell fractions of companies, and is referred to as stocks. A proven method to achieve wealth while keeping up with inflation, comprised of publically held companies who offer goods and services that are used by the general public daily. Companies sell stocks to public investors in a free and open market environment on a daily basis, which is an effective strategy to build a sound financial future.
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According to Perold (2004), ‘CAPM can be served as a benchmark for understanding the capital market phenomena that cause asset prices and investor behavior to deviate from the prescript...
Howells, Peter., Bain, Keith 2000, Financial Markets and Institutions, 3rd edn, Henry King Ltd., Great Britain.
Saudi Arabia’s capital market is considered to be young compared to other financial markets in the region. Saudi financial markets have been developing slowly because most enterprises in the country are either government owned or family-owned, most of which was funded through state budget, and as a result reduced the need for financing. In the recent past, Saudi Arabia has focused on a careful measurement for structural developments and regulatory changes. However, different phases of historical development of the capital market which can be classified into three phases; pre-industrialization phase, post industrialization phase and growth phase that sparked changes and shaped the kingdom 's capital market on
I became an enthusiast of finance ever since I was at high school. At the political economy class, my teacher asked us: if you have a million RMB, how would you use it? She then introduced us the concept of investment, and I was intrigued specifically by the stock. For the latter two years of my high school, I have been reading books and articles regarding the stock market in the U.S. and in China. As one of the outstanding students ranked top 1% in College Entrance Exam in Hainan Province, China, I was accepted by the City University of Hong Kong with a full scholarship. With the strong interest in finance, I chose quantitative finance and risk management as my major.
Block, S. B., & Hirt, G. A. (2005). Foundations of financial management. (11th ed.). New York: McGraw-Hill.
The stock market is an essential part of a free-market economy, such as America’s. This is because it provides companies the capital they need in exchange for giving away small parts of ownership in their company to investors. The stock market works by letting different companies sell stocks to gain capital, meaning they sell shares of their company through an exchange system in order to make more money. Stocks represent a small amount of ownership in a company. The more stocks a person owns, the more ownership they have of that company. Stocks also represent shares in a company, which are equal parts in which the company’s capital is divided, entitling a shareholder to a portion of the company’s profits. Lastly, all of the buying and selling of stocks happens at an exchange. An exchange is a system or market in which stocks can be bought and sold within or between countries. All of these aspects together create the stock market.
At times, the term "market" is used to refer to more strict exchanges. That is, organizations that aid the trade in financial securities for instance, a commodity or stock exchange. It may also be an electronic system (like NASDAQ) or a physical place (like the NYSE, BSE, NSE). Trading of stocks occurs mostly on an exchange. However, corporate actions like merger or spinoff are occur away from the exchange. In addition, any two people or companies, for of any kind reason, may decide to sell stock bet...