Question

Importance of Capital Markets

In 300 words, please explain the importance of capital markets to corporations. What is the difference between a primary market and secondary market? How do these types of capital markets differ in their impact on corporations? What are some influences that may negatively impact capital markets and how can corporations help keep these influences stabilized?

+3 References would be nice! Thanks in advance and answer will be definitely well-rated.  

Answer 1

Capital Markets are Markets where capitals are generated by various companies and Corporation for the longer period and the capital requirements.

capital markets generally have two segments one is primary segment and another is secondary segment.

primary markets are generally used for issuance of securities for the first time like initial public offer and secondary markets are used for continuous trading of those issued securities and those are sold to arrive at continuous share price.

the differences between primary market and secondary market share their primary market is used for issuance of security for the first time where are secondary markets are used for continuous trading.

Examples of primary market issue would be initial public offer whereas secondary market example would be purchase and sales of shares by company.

capital markets are always helpful for cooperation in order to raise capital for the longer period.it is meant for protection of various investors through regulatory authorities which requires a lot of disclosure requirement by companies.

capital markets can be negatively impacted by the various change in regulations and they can also be affected by the change in the macro policies of the Government and political shift in the country