Capital Market in Pakistan

Introduction Capital food grocerys are key elements of a modern, market-based economic agreement as they serve as the channel for flow of yearn term financial resources from the savers of detonating device to the borrowers of capital. Efficient capital markets are henceessential for economic growth and prosperity. With growing globalization of economies, the global capital markets are also becoming increasingly integrated. temporary hookup such ntegration ispositive for global economic growth, the downsiderisk is the contagion effect of financial crisis, especially if its origin lies in the bigger markets. The capital market is the market for the unloosen and trading of long-run securities.  The term in this instance is measured as the term to due date of the warrantor and in order to be classified as a capital market instrument, the term to maturity should be yearner than 3 years.  During the trading of these instruments, the securities traded are informally classified into short-run, medium-term and long-term securities depending on their term to maturity.  Where the term to maturity of the instrument is up to five years, the security is classified as a short-term capital market instrument.

  Where the term to maturity is five to disco biscuit years, the security is classified as medium term, and where the term to maturity is more than 10 years, the security is known as long-term. The primordial market is the market for the first issue of securities.   This issue is ordinarily done by means of a public issue or by private placement.   The secondary market is the market for trading securities once they have been issued.  The secondary market has a big influence on the issues in the primary market, as the market rate is immovable in the secondary market.  Issues in the primary market at below market rate, determined in the secondary market, would be issued at a force out on the nominal value of the instrument.  If the volumes traded in the secondary market are high it could be an indicator that an... If you want to light a full essay, order it on our website: Orderessay

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