Capital markets and systems

Résumé du document

Capital markets and systems: The capital market is the market for securities where companies and the government can raise long-term funds. The capital market includes the stock market and the bond market. Financial regulators, such as the U.S Securities and Exchange Commission, and Financial Services Authority in the UK, oversee the markets to ensure that investors are protected against fraud. Capital markets consist of the primary market, where new issues are distributed to investors, and the secondary market, where existing securities are traded. Most markets are regulated by state wide laws and regulations. While barter markets exist, most markets use currency or some other form of money. The term "stock market" is a concept for the mechanism that enables the trading of company stocks that means collective shares, other securities and derivatives. Bonds are still traditionally traded in an informal, over-the-counter market known as the bond market.

Extraits

[...] The SEC also works with criminal law enforcement agencies to prosecute individuals and companies alike for severe offences. To achieve its mandate, the SEC enforces the statutory requirement that public companies submit quarterly and annual reports, as well as other periodic reports. As part of the annual reporting requirement, the company's top management must provide a narrative account in addition to the numbers called “management discussion and analysis which provides an overview of the previous year of operations and how the company fared in that time period. [...]

[...] What is the money market? 3. a. What are the commodity markets? b. What are physicals and futures? c. Who are the players? Are they all-end-users? d. Are the markets efficient? [...]

[...] This is the fundamental concept of bond market volatility: changes in bond prices are inversed to changes in interest rates. Fluctuating interest rates are part of a country's monetary policy and bond market volatility is a response to expected monetary policy and economic changes. Economist's consensus views of economic indicators versus actual released data contribute to market volatility. A Tight consensus is generally reflected in bond prices and there is a little price movement in the market after the release of data. [...]

[...] What are the risks in these markets? b. Can I measure them? c. Does that help the investor? Diane NEVEU -final assignment –Capital markets and systems- 04-17- The capital market The capital market is the market for securities where companies and the government can raise long-term funds. The capital market includes the stock market and the bond market. Financial regulators, such as the U.S Securities and Exchange Commission, Financial Services Authority in the UK oversee the markets to ensure that investors are protected against fraud. [...]

[...] The process of selling new issues to investors is called Diane NEVEU -final assignment –Capital markets and systems- 04-17- underwriting. In the case of a new stock issue, this sale is an initial public offering (IPO). Dealers earn a commission that is built into the price of the security offering; through it can be found in the prospectus The secondary market The secondary market is the financial market for trading of securities that have already been issued in an initial private or public offering. [...]