Global Capital Markets: Driving Economic Growth and Investment
Capital markets are fundamental to the global financial system, facilitating the efficient allocation of resources between investors and businesses. These markets provide opportunities for companies to raise funds while allowing investors to participate in economic growth. Capital markets consist of two primary segments: the primary market, where new securities are issued, and the secondary market, where existing securities are traded among investors. Key Functions of Capital Markets Capital markets play a vital role in capital formation, enabling businesses and governments to raise funds for expansion and operational needs. Companies issue stocks, bonds, and other financial instruments to attract investors, fueling economic development. These markets support innovation, infrastructure projects, and job creation through efficient capital allocation. Another essential function is price discovery, where market dynamics determine the value of securities based on supply and demand. Stock ...