Before China was liberated, the Chinese people had this saying in their hearts: Defeat capitalism and take the road of socialism. So what does today's capital market mean? Will it still be condemned by people in their hearts? What is the meaning of capital market? What is the meaning of capital market? What is the composition? What is the meaning of the capital market? Related comments: 1. The meaning of the capital market The capital market is the sum of all medium and long-term capital (more than one year) trading activities, including the stock market, bond market, fund market and medium- and long-term credit market, among which Financing funds are mainly used as capital to expand reproduction, so it is called the capital market. The capital market is a mechanism that guides resource allocation through expectations of returns. 2. Composition of the capital market The capital market should at least cover: securities market (stock market, long-term bond market - long-term treasury bonds, corporate bonds, financial bonds, etc.), long-term credit market (long-term mortgage loans, long-term project financing, etc.), derivatives Market (financial futures market, financial options market, etc.). What does capital market mean? What does capital usually refer to? Question: What is usually referred to as capital? What does capital refer to? Related comments: Mainly refers to financial assets. What is the meaning of capital market? What is capital market? What does capital market mean? Capital market is a long-term capital market. It refers to a place for securities financing, capital lending and securities trading that operates for more than one year, also known as the medium and long-term capital market. The capital market can be divided into the bank's medium and long-term credit market and the securities market according to different ways of financing funds. If classified according to the basic nature of financial instruments, the capital market can be divided into equity market and bond market. The former refers to the stock market and the latter refers to the bond market. The main certificates circulating in the stock market are company stocks. Shareholders who hold stocks, unless the company closes its business, only have annual dividend income as its equity assets and cannot have immediate claims on the company's assets. The basic characteristics of various debt instruments circulating in the creditor's rights market, including various bonds, commercial promissory notes, certificates of deposit, and loans, are that they have a certain term, a relatively certain rate of return, and the right to claim the full amount. Capital markets are that part of financial markets that include all institutions and transactions related to the supply and demand for long-term capital. Long-term capital includes part of the company's ownership such as stocks, long-term public bonds, long-term corporate bonds, large negotiable certificates of deposit for more than one year, real estate mortgage loans and financial derivatives, etc. It also includes long-term loan forms such as collective investment funds, but does not include Commodity futures. The capital market is a form of market, rather than a physical location. It refers to all the people, institutions and the relationships between them that trade in this market. Capital market insights are defined differently in terms of their details. Some financial scientists only regard transactions between certified objects as the content of the capital market, and separate loan transactions without certification into the loan market. Other financiers view both as capital markets. It is recognized that long-term capital is the difference between this market and other financial markets such as derivatives markets and currency markets. Capital market participants acquire contractually proven rights to future capital by investing their capital with grantee investors. Both parties also agree on an interest rate to be paid to investors. Normally interest is paid annually. The level of interest rates is mainly determined by the payment ability of the investor and the level of interest rates in the capital market. In the capital market, the investor is the demander of capital and the provider of future payment rights. Market activities on the capital market include the buying and selling of stocks and bonds, the raising of capital by joint stock companies, and loans to natural persons. Capital market type The contract period for capital transfer in the capital market is generally more than one year. This is the difference between the capital market and the short-term money market and derivatives market. The capital market can be divided into primary market and secondary market: in the primary market, new capital-absorbing securities are issued and demanded by investors. Issued securities change hands in the secondary market. A market is an organized capital market if it meets the requirements of a stock exchange. Generally speaking, organized markets such as time and location can improve market liquidity and reduce transaction costs, thereby improving the effectiveness of the capital market. Characteristics of the international capital market: 1. Absorb and organize domestic and foreign funds through market mechanisms, and allocate and redistribute them in the medium and long term. 2. Transactions focus on safety, profitability, and liquidity. Both lenders and borrowers attach great importance to a stable long-term cooperative relationship. 3. There are various risks such as political risk, default risk, interest rate risk, exchange rate risk, and operating risk, and a variety of hedging measures need to be taken. The significance of capital market to the national economy In the national economy, the capital market plays the role of transforming financial capital into century capital. Its significance lies in 1. Accepting financial capital (investment) that is not used for consumption; 2. Achieving market balance between providers and demanders by establishing market prices; 3. Directing capital to the most effective investment; 4. Through competition among capital demanders, capital can be invested in the most effective uses, which can improve the wealth of the entire national economy. Task deadline transitions in the national economy are coordinated through deadline requirements between deadline transition recipients and investors. Batch conversion capital markets can pool the money of many small investors into one large investment. Risk conversion Unguaranteed income in the future can be converted into guaranteed income in the present. Perfect Markets and Banks To simplify models of national economies theorists sometimes assume a perfect market.
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