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Capital Market
Regulations
Regulations are an absolute necessity in the
face of the growing importance of capital
markets throughout the world. The
development of a market economy is
dependent on the development of the
capital market. The regulation of a capital
market involves the regulation of securities;
these rules enable the capital market to
function more efficiently and impartially.
Capital Market
Liberalization
Capital market liberalization, a result
of globalization and trade
liberalization, refers to the relaxation
of government restrictions in the
market. Not only government entities,
but also private entities participate its
functioning, and investors around the
world are able to invest in the shares
and bonds of other countries.
Capital Market
Investment
The capital market investment
makes the investors to buy or sell
securities in the capital markets. The
stock market and bond market are
types of capital markets where
investors can trade in stocks and bonds.
The investments in the capital market
may be either in the bonds or stocks.
Stock Investment
The investment in stocks may in six
different styles. Depending on the needs
and reasons of the investors, the
efficiency of the investment is estimated.
There are some investors who depend on
the advice of other people while
purchasing or selling a particular stock.
Bond Investment
Bond investment is different from that of stock
investment. Bond investment is investing in
the debt instrument that is issued by a
company or government. The bond investor is
actually lending money to the company while
in return is promised to be paid the full
principal amount plus a fixed periodic payout.
The yield on the bond is calculated by putting
together the final principal and total payouts
received. The yield is the effective interest rate
for the tenure of the bond.
Capital Market
Assumptions
Asset allocation is one of the most important
decisions related to investment in the
capital market. There are a number of risk
factors related to these investments, and
because of this appropriate capital market
analyses are necessary. There are firms
which provide capital market investment
solutions to investors, each making their
own risk and return calculations, or capital
market assumptions.
Capital Market
Transactions
The capital market transactions are made
while trading in the capital market securities.
Stocks and bonds are the two types of
securities where the capital market
investments are done. Capital market
transactions are monitored by the financial
regulatory bodies.
Capital Market
Conditions
The capital market conditions are
influenced by the rise and fall of the
stock market and bond market. Other
than the financial condition of the
economy, capital markets are also
influenced by various other external
factors.