Capital Markets
Capital Markets: Domestic and International
Corporate Finance
FIN 320 Module 9, Cohort 6
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 bond market. Financial regulators, such as the U.S. Securities and E ...