Benefits of Capital Market to Enhance Your Business.

Capital Market is one of the significant factor of every financial market. Savings and investments plays a essential role in the economic development of an economy. It is a market for financial assets which have a long or indefinite maturity. It provide long term debt or equity finance to the government and corporate sector. The long term funds comes from the individuals, institutions, central government etc. Capital Market Advisory is a team of experienced persons which provides strategic advice and supervision in order to meet the financial goals.

Money Market VS Capital Market :

Money market deals with the short term loans whereas capital market deals with the long term debt and equity in the form of shares and public deposits.

In the money market, the maturity date of compensation may be after one hour to 90 days, but in capital market loans are given for 5 to 20 years.

In the money market, rate of interest is controlled by Central Bank whereas in capital market interest rate depends upon the demand and supply of securities.

The dealers of money market are commercial banks, whereas in capital market main dealers are public and private companies.

Functions of Capital Market :

Mobilization of Savings : It plays an important role in mobilizing the idle saving from the economy. It congregate funds from the finance companies and further investing in the productive channels of the economy.

Capital Formation : Capital market helps in capital formation. It is the process of building up the real capital stock for a country and then investing them to produce goods and providing services.

Speed up economic growth and development : As capital market mobilize the funds for the business which results to increase productivity in economy by generating employment and the development of infrastructure.

Proper regulation of funds : It doesn't only mobilize the funds but also helps in proper allocation of the resources. It can have a control over the resources so that funds can be used in a qualitative manner.

Service Provision : It provides various types of services as it provides long term debt or equity to industries, consultancies etc. Hence, employment within the country increases ultimately services provided by the organization will also increases.

Continuity Availability of funds : Capital market is the substantial place where funds are always available for the long term investments. A financial market that satisfies the need of the buyer and the seller. Both buyer and the seller can easily sell and buy and sell the securities.