Capital Markets

The Purpose

The purpose of capital markets is to match the demand for funds with the supply of funds. These markets fuel economic growth by allocating capital that can be used to create jobs, build infrastructure and finance innovative ideas

Buyers

Individuals or Institutions that seek return on funds they invested

Sellers

Individuals or Institutions that seek to raise funds to meet their needs OR manage their risk

Financial Intermediaries

Financial intermediaries are financial institutions that identify and connect buyers’ and sellers’ needs in real time or over time, and help determine a market price, so that transactions can occur and funds can be allocated efficiently.

Global Capital Markets

  • Equity Markets
  • Debt Markets
  • Primary Markets
  • Secondary Markets

Who sells, buys and why –

A variety of buyers and sellers come to the capital markets with different needs and objectives. Financial intermediaries play an important role in facilitating transactions in which there isn’t a ready seller to match with a buyer, or vice versa. Or when there are different characteristics of assets involved, such as different sizes. In these cases, the intermediary acts as a market maker, using its own capital or holding the assets until a buyer or seller can be found. This enables the buyer or seller to transact at that moment, regardless of market conditions.