Capital Markets

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are financial markets that bring buyers and sellers together to trade stocks. bonds, currencies, and other financial assets.

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Capital Markets

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is money entrepreneurs and businesses use to buy resources and supplies. These are then used to make products or provide services to buyers.

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Financial capital

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Financial capital is raised through capital markets in two ways

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selling bonds, selling stocks

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Issuing or selling stocks takes place through an

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IPO ( Initial Public Offering )

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security that represents the ownership of a fraction of a corporation

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Stocks

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It is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).

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Bonds

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Any financial instrument with maturity exceeding one year (such as bank loans, bonds, leasing and other forms of debt finance), and public and private equity instruments.

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Long term financing

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It is a financial institution licensed to receive deposits and make loans

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Banks

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The risk that a company won't be able to meet its obligations to pay back its debts.

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Financial Risks

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Market where buyers and sellers trade commodities, financial securities, foreign exchange, and other freely exchangeable items (fungible items) and derivatives.

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Financial Markets

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refers to the collection of markets and exchanges where regular activities of buying, selling, and issuance of shares of publicly-held companies take place

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Stock Market

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It is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt.

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Mutual Funds

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is a market in which people and entities can trade financial securities. commodities, and other fungible items

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Financial Markets

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refer broadly to any marketplace where the trading of securities occurs, including the stock market, bond market, forex market, and derivatives market, among others.

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Financial Markets

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a market in which financial assets (securities) can be purchased or sold

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Financial Market

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facilitate transfer of funds from person or business without investment opportunities (i.e. "Lender-Savers", or "Surplus Spending Units) to those who have them (i.e. "Borrower-Spenders", or "Deficit Spending Units")

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Financial Markets

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these are funds transferred directly from ultimate savers to ultimate buyers.

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Direct financing

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Methods of Direct Financing

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Private placement

Brokers and Dealers

Investment Broker

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Selling securities by private negotiation directly to insurance companies, commercial banks, pension funds, large-scale corporate investors and wealthy individual investors.

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Private Placement

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is the one who acts as an intermediary between buyers and sellers but does not take title of the security traded.

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broker

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is one who is in the security business and acting as a principal rather than an agent. It buys for his account and sells to customers from inventory and makes profits by selling it at a higher cost.

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Dealer

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A person who provides financial advice and who underwrites and distributes new investment securities.

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investment broker

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a financial "intermediary" transforms financial claims with one set of characteristics into other characteristics (e.g. deposits are used to make loans)

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Indirect Financing

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are institutions that borrow funds from savers and then lend these funds to others.

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Financial Intermediaries

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is the process of indirect finance whereby financial intermediaries link savers and borrowers

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Financial Intermediation

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new shares are issued and sold to the investing public for the first time.

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Primary Market

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is the process by which a company offers equity to the investors and becomes a publicly traded company

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IPO Initial Public Offering

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assists the issuer of a new security in setting the offering price and in marketing the securities to the public.

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underwriter or investment banker

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serves as a middleman in the transfer of funds between the company in need of capital and the public, and facilitates the issuance of shares.

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Investment banker

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is where existing shares, debentures, bonds, etc. are traded among investors.

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Secondary Market

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is where short-term funds are raised through the buying and selling of short term (maturity date is one year or less) debt securities

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Money Market

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is where long-term (maturity date is more than one year) are funds are raised through the bond market, which deals with long-term debt securities

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Capital Market

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includes government - issued securities and corporate debt securities, and facilitates the transfer of a capital from savers to the issuers or organizations requiring capital

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Bond Market

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is an organized activity involving the buying and/or selling of securities done within a stock exchange.

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Stock Market

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market for loans to people and organizations buying property,

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Mortgage Market

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market where personal debt is taken on to purchase goods and services. It is usually involved in loans on autos, appliances, education, travel, etc.

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Consumer Credit Market

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market in which buyers enter competitive bids and sellers enters competitive offers at the same time.

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auction market

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When buyers and sellers of securities negotiate with each other regarding price and volume, either directly or through broker to dealers,

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Negotiation Market

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It is a specific place in which buyers and sellers meet to trade according to the agreed rules and procedures

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Organized Market

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This market is not a specific organization but another way of trading securities. OTC transactions are carried out by direct inquiries and negotiations among the buyers and sellers through the use of mail, telephone, telegraph, Teletype, or other forms of communications. (PSE)

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Over-the-counter-market

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Stocks of corporations not listed and therefore not traded in the stock exchange but registered and licensed by the Securities and Exchange Commission for sale to the public are only available

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Over-the-counter market

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This is where securities are traded for immediate delivery and payment.

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Spot Market

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It is a market where contracts are originated and traded that give the holder the right to bu Something in the future at a price specified by the contract

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Future Market

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Market where stock options are traded

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Options Market

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is a contract giving the owner the right to either buy or sell a fixed number of shares of stock at any time before the expiration date at a price specified option.

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Stock Option

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Two kinds of option

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Call Option

Put Option

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which is right to buy a stock

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Call Option

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Gives the holder the right to sell a stock

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Put Option

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it is a market where people buy and sell foreign currencies

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Foreign Exchange Market

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Brings buyers and sellers together

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stock exchange

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facilitate the flow of savings into investments by providing a ready market for the resale of securities

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stock exchange and stock market

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are the ones who buy and sell securities in the hope of receiving dividend income and making a profit through capital appreciation.

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investors

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acts as an agent or middleman between the investor and other buyers/sellers.

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stockbroker

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executes orders for clients, purchasing or selling the stocks on the stock exchange

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stockbroker

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Its professional management ensures that the market is efficient, fair, transparent and orderly by enforcing its rules and regulations.

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Stock exchange

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When shares are purchased and transferred from the seller to the buyer, the transaction should be recorded in the stock books of every listed company which record the complete shareholdings of each stockholder of the company. But most companies have his record keeping done by a separate agency

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Transfer Agent

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When a transaction has been made, the seller - through his stockbroker-has to deliver the stock certificate to the buyer who in turn orders his stockbroker to pay for the shares purchased. To facilitate transactions and make the market more orderly, all payments by all stockbrokers are done to a centralized institution

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Clearing House

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A corporation that offers and lists its shares in the stock exchange is called a listed company or issuer

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Listed Company

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measures the relative changes in the free float-adjusted market capitalization of the 30 largest and most active common stocks listed at PSE

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PSEi philippine stock exchange index

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brings together companies which aim to raise capital through the issue of new securities

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PSE

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facilitates the selling and buying of the issued stocks and warrants.

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PSE

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The stocks behind large, industry-leading companies.

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Blue Chip Stocks

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offer a stable record of significant dividend payments and have a reputation of sound fiscal management

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Blue chip stocks

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is the amount of money a trader is willing to pay per share for a given stock. Its balanced against the ask price, which is what a seller wants per share of that same stock, and the spread is the difference between those two prices.

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Bid

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simply refers to the time at which a stock exchange closes to trading

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Close

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practice of buying and selling within the same trading day, before the close of the markets on that day.

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Day trading

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A portion of a company's earnings that is paid to shareholders, or people that own that company's stock, on a quarterly or annual basis

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Dividend

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refers to a market milestone in which a stock or index reaches a greater price point than previously.

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High

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it represents a lower price point for a stock or index.

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Low