Capital market, in principle, mean a market where financial institutions or securities exchanged between the parties. This is a very popular way to raise funds, companies as well as for Governments. This is a long-term financing. Both the bonds market and the Exchange. In addition, the primary and secondary market consists of the capital.
The fundamental role of capital markets helps to increase the necessary resources to the various institutions for the financing of their various activities, such as the improvement of infrastructure, an increase in the assets, research, etc. These markets are also a valuable source of income to investors. Originate revenue when assets increase in value. This increase is the result of additional revenue for investors who then use some of these sources and the increase in sales and contribute to economic growth. When investors enter the market on a daily basis, and only buy shares of companies that they believe are good, this market provides companies with valuable information on whether their company is perceived by investors who are doing well. Financial markets, providing valuable feedback for these institutions.
Knowing more about stock can also understand the reaction of investors changes in government policy. For example, if the Government adopted a policy that makes investors that will lead to negative consequences for the economy, limit buys the shares, which led to a reduction of the trade, a reduction of the market. Similarly, if the policy is supposed to be good for the market, the weight of the company, leading to the development of the market. Capital is always considered as a source of funding for continued investment, which plays an important role in the growth of economy.
The fundamental role of capital markets helps to increase the necessary resources to the various institutions for the financing of their various activities, such as the improvement of infrastructure, an increase in the assets, research, etc. These markets are also a valuable source of income to investors. Originate revenue when assets increase in value. This increase is the result of additional revenue for investors who then use some of these sources and the increase in sales and contribute to economic growth. When investors enter the market on a daily basis, and only buy shares of companies that they believe are good, this market provides companies with valuable information on whether their company is perceived by investors who are doing well. Financial markets, providing valuable feedback for these institutions.
Knowing more about stock can also understand the reaction of investors changes in government policy. For example, if the Government adopted a policy that makes investors that will lead to negative consequences for the economy, limit buys the shares, which led to a reduction of the trade, a reduction of the market. Similarly, if the policy is supposed to be good for the market, the weight of the company, leading to the development of the market. Capital is always considered as a source of funding for continued investment, which plays an important role in the growth of economy.
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