Capital market, also known as long-term capital market, is a kind of financial market relative to money market (short-term capital market). Usually refers to the place where financial instruments are traded for more than one year, including stock market, bond market and long-term credit market. Fundraisers and investors are the main participants in the capital market. Together with intermediary institutions and management institutions, they are mutually restricted and interdependent, which constitutes the complete connotation of the capital market.
The history of commercial banks operating funds for enterprises is much earlier than that of stock market and bond market. Banks accumulate a small amount of funds from all walks of life and invest in enterprises. Holland/KLOC-At the beginning of the 0/7th century, paper money was not widely used, so banks got physical money from depositors, accumulated it, and invested or lent it to an enterprise in the form of physical money.
But relying on the credit market to provide capital also has many disadvantages:
First of all, the capital provided by banks is limited in scale and use. The reason for the limited scale is: 1. Bank financing will eventually lead to the increase of money supply, and as a money creation department, it must control the amount of money issued according to the overall economic situation to avoid causing nationwide inflation; 2. Banks are operating in debt, and the principle of prudence is the first principle, so many high-risk investment activities are afraid to set foot in, and in order to prevent risks, the scale of bank lending in various countries is limited according to the bank's capital ratio. If the bank itself is not large enough, it cannot provide enough capital. In the expanding new economic field, the capital provided by banks can no longer meet the demand. The reason for restricting the use is that in order to achieve steady operation, banks often attach requirements such as maintaining a certain liquidity ratio and asset-liability ratio to their loans, which limits the scope of use of funds.
Secondly, relying on banks to provide capital is easy to cause the duality of banks and enterprises.
Moral hazard. Because the risks and benefits assumed by both parties in credit activities are asymmetric. Banks provide loans and banks are only creditors. No matter how big the profits of enterprises are, banks only get fixed interest. If the enterprise fails to invest, as long as the assets of the enterprise are enough to repay the loan, the bank will not suffer too much loss. This asymmetry has two consequences. On the one hand, banks, as creditors, cannot and have no motivation to actively supervise the daily operations of enterprises; On the other hand, due to the expected behavior of banks, enterprises also shirk their responsibilities for their own business behavior, which often leads to the distortion of enterprise behavior and increases the risk of investment failure and failure to repay loans.
Comparatively speaking, the securities market composed of stock market and bond market, as direct financing, has a large amount of financing and less restrictions on the use of funds, and will not affect the total money supply. Therefore, the stock market and bond market are important parts of the capital market, and the narrow sense of capital market refers to the stock market and bond market. Abby, global chief investment strategist at Goldman Sachs? Cohen once said: "When we look at the global stock market or bond market, we will find that there is more capital there."
Question 2: What is the capital market? Capital market is an important part of modern financial market, and its original meaning refers to the market formed by long-term financing relationship. However, with the development of market economy, the significance of capital market has gone far beyond its original connotation and become a multi-level market system for social resource allocation and various economic transactions. Under the condition of highly developed market economy, the functions of capital market can be defined as financing, property right intermediary and resource allocation according to its development logic.
(A) the financing function
The capital market in the original sense is a market in the pure financing sense, which is symmetrical with the money market and the sum of long-term financing relations. Therefore, financing is the original function of the capital market.
(2) Configuration function
It means that the capital market plays a guiding role in resource allocation by guiding the flow of funds. There is a strong evaluation, selection and supervision mechanism in the capital market. As rational economic men, investors always have clear profit-seeking motives, thus promoting the flow of funds to efficient sectors and showing the function of optimal allocation of resources.
(C) the function of property rights
The property right function of capital market refers to its function of restraining the property right of market subject and acting as the intermediary of property right transaction. Property right function is a derivative function of capital market, which plays an important role in the process of enterprise property right reorganization by reforming enterprise management mechanism, providing financing for enterprises, transmitting property right transaction information and providing intermediary services.
The above three aspects together constitute a complete functional system of the capital market. Without a link, the capital market is incomplete or even distorted. The function of the capital market is not artificially endowed, but one of the attributes of the capital market itself. This is of great theoretical and practical significance for us to understand the function of the capital market in theory, treat the problems in the development of the capital market correctly and make effective use of the capital market.
Question 3: What does the capital market mean? Capital market (English: capital market is also called "long-term financial market") and "long-term capital market". Places where various funds are borrowed and traded for more than one year.
Capital market is a market for enterprises and individuals to raise long-term funds, including long-term lending market and long-term securities market. In long-term lending, it is generally consumer credit provided by banks to individuals; In the long-term securities market, there are mainly stock market and long-term bond market.
The trading object of the capital market is long-term securities for more than one year. Because long-term financial activities involve long-term capital, high risk and long-term stable income, which is similar to capital investment, it is called capital market.
One of the three major components of the financial market. Long-term capital trading market. Long-term capital refers to corporate debt and shareholders' equity-stocks with a repayment period of more than one year, which are used for investment in fixed assets. It is in sharp contrast with the capital market that regulates the surplus and deficiency of funds of companies or financial institutions.
Question 4: What does the capital market mean? Seek the master! ! The capital market is a place for all kinds of capital lending and securities trading with a term of more than one year.
In essence, capital is wealth, usually in the form of money or physical property. There are mainly two kinds of people in the capital market: those who look for capital and those who provide it. People looking for capital are usually industrial and commercial enterprises and * * *; People who provide capital are those who want to make a profit by lending or buying assets.
Capital, in the economic sense, refers to the basic factors of production used in production, that is, capital, factories, equipment, materials and other material resources. In the fields of finance and accounting, capital is usually used to represent financial wealth, especially financial assets used for doing business and starting enterprises. In a broad sense, capital can also be regarded as the general name of various social and economic resources for human beings to create material and spiritual wealth.
The capital market is just one of the market forms. The market consists of sellers and buyers, sometimes in physical space, such as farmers' markets or large shopping malls, and sometimes in electronic environment. The financial market is the market where financial products are traded. For example, the money market is to establish mutual parity for currencies of various countries, and market participants can meet demand or speculation by trading various currencies. Similarly, commodity futures market and capital market are also designed to meet the different financial needs of buyers and sellers.
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Question 5: What is the capital market? What are the characteristics and functions of the capital market? What is long-term? At least 1 year, or as long as decades, or even no expiration date. 2. Poor liquidity. Most of the funds raised in the capital market are used to solve the medium and long-term financing needs, so the liquidity and liquidity are relatively weak. 3. High risks and high returns. because
Question 6: What is the capital market? The capital market is a long-term capital market. It refers to the place where margin financing and securities lending have been operated for more than one year, also known as the medium and long-term capital market.
According to the different financing methods, the capital market can be divided into the medium and long-term credit market of banks and the securities market.
According to the basic nature of financial instruments, capital market can be divided into equity market and bond market. The former refers to the stock market, while the latter refers to the bond market. The main negotiable instrument in the stock market is the company's stock. Unless the company goes out of business, its equity assets only have annual dividend income, and it is impossible to claim the company assets immediately. Various debt instruments circulating in the debt market, including various bonds, commercial promissory notes, certificates of deposit, loans, etc., are characterized by a certain term, a certain rate of return and sufficient creditor's rights.
Capital market is a part of financial market, which includes all institutions and transactions related to long-term capital supply and demand. Long-term capital includes part of the company's ownership, such as stocks, long-term treasury bonds, long-term corporate bonds, large negotiable certificates of deposit for more than one year, real estate mortgage loans and financial derivatives, and also includes long-term loans such as collective investment funds, but does not include commodity futures.
Capital market is a market form, not a physical place, but all the people, institutions and their relationships who trade in this market.
As far as its details are concerned, capital market has different definitions. Some financial economists only regard the transactions between certified objects as the content of the capital market, and divide the loan transactions without certification into the loan market. Other financial economists believe that both are capital markets. It is recognized that long-term capital is the difference between this market and other financial markets such as derivative market and money market.
Question 7: What is the capital market? 10 points capital market (English: capital market, also called "long-term financial market") and "long-term capital market". Places where various funds are borrowed and traded for more than one year.
Capital market is a market for enterprises and individuals to raise long-term funds, including long-term lending market and long-term securities market. In long-term lending, it is generally consumer credit provided by banks to individuals; In the long-term securities market, there are mainly stock market and long-term bond market.
The trading object of the capital market is long-term securities for more than one year. Because long-term financial activities involve long-term capital, high risk and long-term stable income, which is similar to capital investment, it is called capital market.
One of the three major components of the financial market. Long-term capital trading market. Long-term capital refers to corporate debt and shareholders' equity-stocks with a repayment period of more than one year, which are used for investment in fixed assets. It is in sharp contrast with the capital market that regulates the surplus and deficiency of funds of companies or financial institutions.
Question 8: Are the meanings of capital market and securities market the same? Capital markets include many, such as bond market, stock market, cash market, futures market, foreign exchange market and national debt market. . . . . . . . . . The securities market is only a small part of the capital market, and stocks do belong to the securities market, which covers a wide range. My understanding is that even real estate is capital and belongs to the capital market. Simply put, anything that can represent capital and can be traded may be a part of the capital market, and the securities market mainly includes stocks and bonds. Is that clear enough? Hehe, good luck.
Question 9: What are the primary and secondary markets in the capital market? The primary capital market refers to the securities issuance market.
The secondary capital market refers to the securities trading market. Under some special circumstances, the primary market can also be traded.