What is the Capital Market? »Its Definition and Meaning [2019]

A capital market is a kind of financial market in charge of everything related to the purchase and sale of securities .Its main objective is to serve as an intermediary, bringing new resources and saving Investors.

This market gives investors the opportunity to participate as partners , in the capital of large companies, while for companies it represents the possibility of power to place a part of its capital among a large number of investors, in order to finance the expansion of the same company.

The capital market has the mission allow the negotiation of financial instruments and disseminate the information that the market needs in a competitive way, guaranteeing efficiency and transparency within a framework attached to ethical principles and laws.

Currently these markets are handled s from easily accessible electronic platforms from any entity, and in some cases, with availability for the general public.From an infrastructure point of view, these systems are located throughout the world, especially in the most important financial centers in the world such as New York, Hong Kong and London.

Within the capital market there are different institutions that play the role of regulators of the activities carried out in it, some of the most important are: the issuing entities, such as credit institutions, the corporations , the government, etc.Those who place shares, with the object of attracting resources from future investors.The stock exchange of securities, which offers the operational part, monitoring and recording the movements of sellers and buyers, in addition to showing all the information on the quotations and the financial and economic state of the companies.Investors, these can be natural or legal subjects, national or foreign.

Moreover, this market It is classified in the primary market and secondary market.

In the primary capital market, new shares or bonds issued only once are offered , and may be interchangeable between the seller and the buyer.In this type of market can participate both companies or entities of the State, which need financing.In secondary markets, assets can change owners constantly, depending on the prices set by the free game of supply and demand.

In short, these markets are of great importance, for the economic advancement of any country , since it represents a source of funding , in which agencies can participate public and private, who wish to obtain resources for the realization of any project or who want to reorganize their liabilities.