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 ?
Namazov added that the state securities market could play the role of a model for the corporate securities market, especially in IPO.
Al Hashemi described the merger as an appropriate business decision as there is not a need for two securities markets working in the same activity in the country.
Lee remarked that GreTai Securities market will step up its effort in soliciting more overseas enterprises to list their shares on the market, since share listings of quality enterprises can encourage long-term investments by investors and increased shareholdings by foreign investors.
He added, We agreed with securities markets in Jordan, Lebanon and Tunisia to enter into group negotiations to get the best benefits.
Lee Shuh-der, chairman of the GreTai Securities Market, pointed out that in order to speed up pace of share listing by enterprises, the GreTai Securities Market will convene provisional meeting for its board of directors to screen share-listing applications, so that the applicants can complete their share listing by the end of this year.
The meeting also discussed other issues, including the integration of GCC securities markets and unifying of their policies and regulations, the latest developments on securities markets in member states, the outcome of the recommendations made during the conference on the "Restructuring the Regulatory System of Financial Sector".
By being more fungible and hence more liquid, FASIT regular interests may expand the asset securities market.
Salomon Brothers' admissions of deliberate and repeated violations of Treasury auction rules could well have damaged the public's confidence in the overall soundness of the government securities market.
Traditional market timing involves moving into and out of various securities markets on the basis of subjective forecasts of how these markets will change.
Providing an overview of the historical development of the securities market and a literature review of the economic functions of stock markets, Securities Markets and Corporate Governance also examines the legal regimes governing securities markets and takeovers in some leading corporate economies including the US, Germany, Japan and the UK.
7704-1(b)(5) also provides that an "interdealer quotation system" that regularly disseminates "firm buy or sell quotations" by identified brokers or dealers represents an established securities market for this purpose.

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