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) |