role of capital market
TRANSCRIPT
2014
Vincent Konadu Tawiah
ROLE OF CAPITAL MARKET
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INTRODUCTION
Financial market
Types of financial market Forex market
Capital market
Money market
Credit market
Derivative market
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CAPITAL MARKET
Is a financial market where investment instruments
like bonds and equities are bought and sold.
Capital market primary role is to connect investors
who have surplus funds to companies who are running
deficit or need the funds
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TYPES CAPITAL MARKET
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PRIMARY MARKET
Capital instrument such as shares and bond are sold to
the public for the first time. (IPO)
Is mainly concerned with new issues so is a called NEW
ISSUE MARKET
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SECONDARY MARKET
Is that market in which the buying and selling of the
previously issued securities is done
It create liquidity in securities.
Also called stock exchange market
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PLAYERS OF CAPITAL MARKET
INVESTORS: usually individuals or group of people
who buy or invest their surplus fund
COMPANIES OR INDUSTRIES; they seek surplus fund
from investors
ECONOMY/ GOVERNMENT; referee or regulator of
the market
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WHAT IS TRADED
Equity instruments
Insurance instruments
Bond instruments
Hybrid instrument
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ROLE OF CAPITAL MARKET
INVESTORS
Reduction in risk through diversification;
various platform for investment
Liquidity; easy to convert investment to cash
Information dissemination
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COMPANY OR INDUSTRY
Source of finance
Continuous availability of fund
Measure of performance
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ECONOMY
Mobilization of savings
Capital formation
Allocation of resources among companies
Collection of information; SENSEX NIFTY index
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WRAP UP
A country with strong capital market like our INDIA will
continue to experience high growth in industrialization
through effective capital formation which will eventually
result in speedy economic growth and development.
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REFERENCE
www.slideshare.net/tejasvibhosale/capital-market-ppt
www.authorstream/presentation
www.iepf.gov.in/IEPF/Role.html
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