Question

Provide commentary on main features of the country’s capital market.

Answer 1

Capital market is very important in deciding capital structure of various companies in the the country so an efficient capital market helps in raising capital which could either be equity financing or debt financing and they can help and optimum mix of both the capital for a company.

Different features of capital market which is existent in country are as follows-

1. It helps in providing long term and short term financing for different companies.

2. Capital market helps in connecting savers and entrepreneurs who are borrowers.

3. There is a wide presence of intermediaries in the capital market which helps in acquiring different type of capital.

4.it provides a place for listing of different type of equities and trading of equities in order to have a fair price discovery.

5 it also provides with a window for foreign investors to invest into the domestic country.

So the presence of capital market is highly significant for a country in order to have a fair security market.