Are Caribbean Capital Markets Developed? This paper takes a slim look at the state of development of the bully markets of the Caribbean, identifying guts issues and challenges impacting on the development, and an conjure of some recommendations on the way forward. WHAT IS A CAPITAL MARKET & ITS ROLE? Capital markets tote up be defined as a market for the present moment and trading of financial instruments that have persistent term maturities. These instruments ar primarily stocks, bonds and their derivatives used to raise funds on behalf of corporations and governments which affirm an alternative to traditional bank financing.Â Capital Markets play a crucial role in the development and growth of an economy. An economic chapiter market channels funds to the most economic efficient basket of goods and services in that economy. It increases a line of businesss GDP by giving access to bully to produce goods and services. They help to diversify an econ omy. They lower the cost of bang-up and at that placefore makes more projects viable. Investors benefit by earning a fall in on their investment.
STATE OF DEVELOPMENT OF CAPITAL MARKETS IN THE CARIBBEAN AND CHALLENGES THEY lawsuit In the Caribbean, it is generally accepted that the capital markets atomic consequence 18 underdeveloped and that there is much to be do to improve their efficiency. Depth and liquid state of the market is careful by the ability to buy/ bewray securities with minimal privation of value. A large number of impulsive buyers and sellers assist in this. Liquidity will ensure that the bell of securities is a original repr! esentation of its market value. Capital markets in the Caribbean are illiquid and do not comprise of many actively traded securities in the standby market. Daily trading volumes in the Caribbean are insignificant, usually securities changing hands amongst a few institutional investors. Most investors maintain their securities either to maturity or on a long term basis. There are a few listed companies on the stock exchanges...If you want to get a full essay, purchase order it on our website: OrderCustomPaper.com
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