Capital Market

the primary role of the financial system in an words is to mobilize nest egg from the surplus economic units and channel likewise to the deficit units thitherby ensuring strong and efficient eitherocation of resources for the optimal do good of the citizenry. The ontogenesis of a strong expectant securities industry is haughty because theoretical and empirical literature have shown that there is a strong, positive correlation between capital mart development and economic growth of any nation. The capital grocery store place positively impacts both investors and companies or governments that source silver from the mart in various ways. However, the scrimping as a whole is the sterling(prenominal) beneficiary of the capital merchandise. This is because all another(prenominal) benefits, both to investors and issuers of securities in the market all crystallize to benefits to the parsimony in general. In specific terms, some of the benefits that accrue to the ec onomy generally from capital market activities include: Mobilization of savings: The capital market is a veritable medium for cultivating a savings culture among the citizenry. It is an effective and efficient platform for mobilisation of savings at all levels from both the least or un educated to the very risky or highly educated in the society.

It encourages savings mobilization across income levels and geographic spreads. Channelling nest egg into Investments Out-lets: The little savings by individuals from across the length and largeness of the country, when pooled unitedly becomes a huge chunk of inves tible funds that finish be channelled into ! the oil-bearing sectors of the economy. The capital market provides the mechanism for the pooling to lineher of these funds and turning them into desire term investments through commonplace offers for subscriptions and bond issues by unrestricted companies and governments. Promotion of Real welkin of the economy: Funds embossed from the capital market atomic number 18 commonly tied to expansion, modernization or restructuring of plants, equipments and...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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