Investing

CAPITAL MARKETS

The capital market is the market for long-term loans and equity capital. Companies and the government can raise funds for long-term investments via the capital market. The capital market includes the stock market, the bond market, and the primary market. Securities trading on organized capital markets is monitored by the government; new issues are approved by authorities of financial supervision and monitored by participating banks. Thus, organized capital markets are able to guarantee sound investment opportunities.

(Source: http://www.wikipedia.org/wiki/Capital_market)

The globalization of capital markets has drawn increasing attention to the rules that govern financial institutions, especially those rules that foster stability in banks and securities firms. In an era of high capital mobility in the industrialized countries, market volatility and competitive pressures place great strains on regulators.

(Source: David Andrew Singer, Harvard University, 2003)


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