The paper 'Introductory Finance Issues" is a good example of a finance and accounting assignment. The equity market is also known as the stock market. The equity market is such a market where the share is issued and traded. Buyers and seller can exchange their shares and can buy new shares of different companies through the equity market. It is one the crucial market of the country which is used to mobilize the foreign and capital resources. Equity market plays a significant role in the economic development of the country.
It gives a platform to companies to collect finance and attract investors for their future ventures or for their current business. The trend of the equity market or stock market directly proportions to the economic development of the country. The company always has issued its shares on some pre-determined price. When buying the shares and exchange their money with the owner of the company is called equity. As equity is derived from the word equal a buyer gives money and buy ownership of the company in the form of shares.
The equity market also represents the effectiveness of the capital market. If the equity market is successfully working with high trends it means the capital market of the country is also making progress with the equity market. Corporate debt market Corporate debt markets, which is also known as the corporate bond market. It plays an important role in the economic development and financial stability of the country. The corporate debt market provides the capital funding flow to the companies with the help of the capital companies expands, innovate and provide goods and services to the people of the society.
It raises the capital of the company. The corporate debt market issues corporate bonds. The corporate bonds include all the bonds that are issued by national and local governments. Corporate bonds include bonds that are issued by the financial and non-financial institutions. Corporate debt markets are separated from both primary and secondary markets. From issuers or company’ s perspective corporate bond is used to raise the capital for the current activity of the business and on the other hand, from the investor’ s perspective corporate bond is used to diversify the risk by purchasing bonds of different activities of the same company.
Thus, corporate bonds are secured and unsecured as well. The basic function of the corporate debt market in the nation’ s capital market is to minimize the risk of corporate debt to raise the findings of the company’ s activities. Government debt market The government debt market is also known as the government bond market. In the government debt market government bonds are issued by the national or local government in domestic currency to support government spending and expense.
The government bonds are fully backed by the full faith of government so that people can buy these bonds and in return government makes promises to pay particular interest for each month and repay it with full face value when bond get matured. The aim of the government to establish effective government debt market is to make economic progress. As the government bond market provides a number of benefits to the country like it are prerequisite of sound economic development of the country. It can increase the financial stability of the country and can also improve various financial intermediations through great economic development.
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