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    Chapter 1

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    Lyn Ambray
    The document provides an introduction to capital markets. It defines capital markets as dealing with stocks and bonds, which companies and governments use to raise funds for operations by selling shares. It describes the primary market where securities are initially sold and the secondary market where they are traded. It explains that capital markets connect investors seeking to invest with those seeking capital. It also briefly mentions different types of capital markets like public stock exchanges and private markets.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Chapter 1

    Uploaded by

    Lyn Ambray
    671 views4 pages
    The document provides an introduction to capital markets. It defines capital markets as dealing with stocks and bonds, which companies and governments use to raise funds for operations by selling shares. It describes the primary market where securities are initially sold and the secondary market where they are traded. It explains that capital markets connect investors seeking to invest with those seeking capital. It also briefly mentions different types of capital markets like public stock exchanges and private markets.

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    capital market

    Original Title

    CHAPTER 1

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    The document provides an introduction to capital markets. It defines capital markets as dealing with stocks and bonds, which companies and governments use to raise funds for operations by selling shares. It describes the primary market where securities are initially sold and the secondary market where they are traded. It explains that capital markets connect investors seeking to invest with those seeking capital. It also briefly mentions different types of capital markets like public stock exchanges and private markets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    671 views4 pages

    Chapter 1

    Uploaded by

    Lyn Ambray
    The document provides an introduction to capital markets. It defines capital markets as dealing with stocks and bonds, which companies and governments use to raise funds for operations by selling shares. It describes the primary market where securities are initially sold and the secondary market where they are traded. It explains that capital markets connect investors seeking to invest with those seeking capital. It also briefly mentions different types of capital markets like public stock exchanges and private markets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Republic of the Philippines

    SURIGAO DEL SUR STATE UNIVERSITY


    Cantilan Campus
    Cantilan, Surigao del Sur

    CHAPTER 1

    INTRODUCTION

    TO

    CAPITAL MARKET
    Republic of the Philippines
    SURIGAO DEL SUR STATE UNIVERSITY
    Cantilan Campus
    Cantilan, Surigao del Sur

    What Are Capital Markets?

    Capital markets basically deal with stocks and bonds in general. In simple words,
    any firm is it private or government is always in need of funds, so as to finance its
    various operations to achieve certain long-term goals. Thus every firm is
    supposed to acquire these very funds or capital; for which, it sells stocks and
    bonds. These stocks and bonds are basically like shares, all of which are in the
    company’s name. For instance, when the government of any country, issues
    what are known as treasury bonds, it basically is tapping into the capital markets,
    thereby generating capital.

    This process is basically known as the IPO or Initial Public Offering. Capital
    Markets are largely divided into two types, the primary markets, and secondary
    markets. The companies and governments sell their securities in the primary
    market, whereas the investors trade with these securities in what is known as the
    secondary markets. Thus, it is safe to say that the capital markets are an
    important area of the finance industry.

    These markets are more like the foundations on the basis of which, various
    companies and governments are able to invest in businesses, generate
    employment as well as better infrastructure. One of the core responsibilities of
    any capital market includes getting the people who are looking to invest, in
    contact with those looking for capital. Put so simply, this sounds like a very easy
    task to do, but in reality, a lot of professionals, perform this high-pressure task, to
    get the desired results.
    Republic of the Philippines
    SURIGAO DEL SUR STATE UNIVERSITY
    Cantilan Campus
    Cantilan, Surigao del Sur

    The private companies look to raise capitals for various reasons, other than just
    expanding their businesses. They could be looking to finance start-up business
    ventures, or to battle with the sudden decline in the turnover, or for buying out the
    competition. While it may seem like it is only those very companies, which are
    profited from this whole business, it is not so. The very reason someone would
    want to provide capital is that that person would be looking to gain profit from
    their financing efforts.

    A lot of people know of capital markets as stock exchanges. These are places
    where anyone can invest and are more commonly known as the public markets.
    This is where the Initial Public Offering takes place, which is the first time when
    any firm, comes out into the public to sell their securities. The next step where
    securities are bought and sold by investors is known as secondary markets, as
    spoken about earlier.

    These secondary markets take place, subsequently after the primary market
    proceedings are over. Just as there are public markets, there also exist the
    lesser-known private markets, which are also known as exempt markets. These
    can be called as more lenient as compared to the public markets, primarily
    because there are no regulations to be met. Also, this is seen as a more cost-
    effective way for companies to fund their financing needs.

    Thus the arena of capital markets has come to garner more attention by a lot of
    people, which is why candidates look for programs, which can make them
    proficient in the inner workings of capital markets. Imarticus Learning one of the
    best education institute in India offers industry-endorsed courses in capital
    markets, finance, and investment banking.

    Chapter 2

    http://www.tradechakra.com/economy/philippines/capital-markets-in-philippines-245.php

    https://www.pna.gov.ph/articles/1077014

    https://www.mckinsey.com/featured-insights/asia-pacific/deepening-capital-markets-in-the-
    philippines
    Republic of the Philippines
    SURIGAO DEL SUR STATE UNIVERSITY
    Cantilan Campus
    Cantilan, Surigao del Sur

    https://imarticus.org/introduction-capital-market-blog/

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