What is a capital market?
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Welcome to the capital market
Many small and medium-sized companies face the same problems in financing their businesses. See what opportunities the capital market offers to entrepreneurs and why it makes sense to be interested.
Capital market simply
A great idea is usually not enough for the development of a successful company. Above all, adequate funding is necessary. Where to get it? The Capital Guide will advise you. See what you can find.A great idea is usually not enough for the development of a successful company. Above all, adequate funding is necessary. Where to get it? The Capital Guide will advise you. See what you can find.
What is a capital market?
The most common capital markets are stock markets and bond markets. The instruments traded are mainly securities with maturities exceeding one year. (Short-term securities payable in one year or less are traded on what is known as a money market.)
What is the purpose of the capital market?
The capital market in its broad sense forms an essential part of every healthy and functioning economy. It facilitates the flow of financial resources (capital) from investors to businesses that can utilise them in funding their production. As such, it complements financing from banks and from the businesses’ own resources.
The Capital Guide, or a brief introduction to the non-banking capital market
The capital market in its broad sense encompasses all movements of capital through the economy. The primary purpose of the capital market is to facilitate the flow of financial resources (capital) between investors and savers to businesses that can use it productively.
Banking institutions are the fundamental mediators of this flow of capital. They borrow financial resources from their clients and lend them to businesses to invest in productive projects. However, businesses can also take advantage of other methods of securing financial resources on the capital market, outside the banking sector.
These alternative options include:
- The securities market, where instruments such as bonds and shares are traded.
- Private investors willing to provide loans (private debt) or invest directly in businesses.
- Innovative platforms operating online that mediate loans, issues of shares or bonds, or even the sale of a shareholding in a company.
