capital market


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Related to capital market: money market

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 ?
'I strongly believe that vibrant and efficient capital market is important for resource mobilisation and supporting the economic development of this region,' he said.
Addressing a forum, PM's adviser says capital markets can play key role in economic growth
"Capital markets can play a key role in financing economic growth through facilitating trade and investment flows," said Dr.
Sanni said there was a clear alignment between the goals of the FIRS and that of the FLTC in collaborating to introduce the capital market studies into the curriculum of schools.
Ministry of Finance, reforms in taxation policy to provide level playing field to investors of capital market, re-structuring of policy board of SECP, viable business model for the brokerage industry, requirements of enhancing capital and capacity of brokerage houses and consolidation thereof, availability of derivatives and options products for retail investors, promoting digital environment, pursuing mega technology/telecom companies for listing, easing account opening process through single KYC for banks, AMCs and Brokerage Houses.
She called for strengthening the governance of SECP, ensuring the ministry of finance capacities are developed for offering an effective interface and support for capital market development, establishment of an all inclusive institutional coordination mechanism among all key regulators and developing a shared vision and a common plan among all stakeholders and market participants of the industry.
SECP underscored their commitment towards development of a modern and efficient capital market based on fair and transparent regulatory framework which fosters strong culture of compliance and ensures investor protection and mitigation of systemic risks.
The capital market is one of the most essential indicators in determining an economy's health.
Zebian repeated Kronfol's comments by saying that people in other countries are buying into their infrastructure through capital markets. "If citizens use their finances to invest in infrastructure through the capital market, this will increase capitalization and markets will be liquid," he said.
Chapter 13 (Subramaniam and Legal) discusses the savings shortfall in some Asian countries and how this could be addressed with capital markets. This idea links well with the estimation done in Chapter 14 (Binh and Park) that examines the degree to which merging Asia's currently fragmented markets into a single larger pool would be an efficient course of action.
In a bid to further strengthen the efficiency, transparency and convenience of capital market operations, the NCS provides an option to Investors to directly settle their trades and transactions with the NCCPL and also maintain the custody of the securities and cash with NCCPL while they can continue to execute trades and transactions in the capital market with the Trading Right Entitlement Certificate (TREC") Holder(s) of their choice.
The Islamic capital market has evolved substantially over the past three decades and it has expanded in terms of diversity of stakeholders, infrastructure, products and services, capabilities as well as its geographical reach.

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