capital market

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Capital market

Traditionally, this has referred to the market for trading long-term debt instruments (those that mature in more than one year). That is, the market where capital is raised. More recently, capital markets is used in a more general context to refer to the market for stocks, bonds, derivatives and other investments.

Capital Market

Any market in which securities are traded. Capital markets include the stock and bond markets. Companies and governments use capital markets to raise funds for their operations; for example, a company may issue an IPO while a government may issue a bond in order to conduct new or expand ongoing activities. Investors purchase securities in the capital markets in order to extract a return and earn profit on the securities. Capital markets include primary markets, such as IPOs that are placed with investors through underwriters, and secondary markets, in which all subsequent trading takes place. Government agencies in different countries regulate local capital markets, though some, especially exchanges, play some role in regulating themselves.

capital market

The market for long-term funds where securities such as common stock, preferred stock, and bonds are traded. Both the primary market for new issues and the secondary market for existing securities are part of the capital market.

capital market

see STOCK MARKET.

capital market

the market for long-term company LOAN CAPITAL and SHARE CAPITAL and government BONDS. The capital market together with the MONEY MARKET (which provides short-term funds) are the main sources of external finance to industry and government. The financial institutions involved in the capital market include the CENTRAL BANK, COMMERCIAL BANKS, the saving-investing institutions (INSURANCE COMPANIES, PENSION FUNDS, UNIT TRUSTS and INVESTMENT TRUST COMPANIES), ISSUING HOUSES and MERCHANT BANKS.

New share capital is most frequently raised through issuing houses or merchant banks, which arrange for the sale of shares on behalf of client companies. Shares can be issued in a variety of ways, including: directly to the general public by way of an ‘offer for sale’ (or an ‘introduction’) at a prearranged fixed price; an ‘offer for sale by TENDER’, where the issue price is determined by averaging out the bid prices offered by prospective purchasers of the share subject to a minimum price bid; a RIGHTS ISSUE of shares to existing shareholders at a fixed price; a placing of the shares at an arranged price with selected investors, often institutional investors. See STOCK EXCHANGE.

References in periodicals archive ?
In addition, ranking officials of GreTai Securities Market constantly hold dialogues with foreign counterparts, such as ranking officials of Nasdaq, OMX, and stock exchanges of Australia, Hanoi, Malaysia, Brazil, and Saudi Arabia, for exchanging opinions on related topics, including market supervision, trading system, and bond database.
This agenda--reestablishing the Treasury's rulemaking authority for the government securities market and perhaps eliminating the prohibition on the National Association of Securities Dealers (NASD) to specify sales practice rules for members participating in this market--would complement the administrative actions that have already been put into motion.
For another, there is a wealth of historical data available on capital market theory and on the various securities markets and their relationships to each other over long periods of time.
Accordingly, the year of disposition of a sale of stock or securities traded on an established securities market is the year that includes the trade date.
The government securities market generates widespread macroeconomic benefits.
The combination of OMX and ICEX will create value and benefits to shareholders, issuers and market participants and will further promote an integrated Nordic securities market.
The proposals contained in the joint report, along with other reforms announced earlier, constitute the comprehensive modernization of the mechanisms and practices in the government securities market.
This report briefly introduces the development status of Chinas securities industry and Chinas securities market segment.
I am pleased to be here today to testify in connection with the regulation of the government securities market.
government securities market is maintained at the highest levels.

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