The capital market is a system of intermediaries, including banks, investors, and corporations that provides financial services to its customers. The objectives of the capital market are to serve as a platform for economic activity, provide liquidity in the financial markets and help facilitate transactions between buyers and sellers.
The capital market is a financial market in which people and organizations buy and sell shares, bonds, and other securities. The objectives of the capital market are to provide an efficient allocation of capital for economic growth, to provide incentives for businesses to invest in new technologies, products, and services, to ensure that the economy is stable by creating incentives for investors who are prepared to bear risk.
The objectives of the capital market are to provide liquidity, intermediation and risk transfer. Liquidity: The capital market provides liquidity by providing buyers and sellers with access to a range of different assets throughout the day. Intermediation: The capital market provides intermediation by providing investors with access to financial instruments that they would not be able to purchase on their own or would have difficulty purchasing in the open market. Risk transfer: The capital market transfers risk from individuals who cannot bear it onto those who can bear it through various financial instruments that are less risky than what an individual might invest in on their own.
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