Question

How can the capital market create a better future for all. Pls as an essay or points.

Answer 1

The stock market is a long-term lending market. It supplies fixed and workable capital to industry and finance central, state and local government medium and long-term borrowing. The traditional equity financial markets are investments and debentures of companies and government bonds and shares.

Explanation:

• The capital market has a significant role to play in immobilizing saving and and channel them into "productive investments" for trade and industry development. As such, the capital market supports the formation of capital and the country's economic growth.
• The capital market acts as an important link between savers and investors. The savers are lenders of funds while investors are borrowers of funds.
• Funds from individuals & financial intermediaries flow into the capital that is absorbed by industry, govt, & commerce. This makes it possible to use the influx of capital more productively & profitably to increase national incomes.
• The lack of a developed equity market is a more serious obstacle to capital formation & economic growth in an undeveloped nation where capital is scant. Given the fact that people are poor, they have no opportunities to save. Others save money and invest in wasteful and unproductive channels such as gold, jewellery, immovable goods, noticeable consumption, etc.
• These nations will encourage people to invest more by setting up    banking and non bank financial institutions for developed capital market existence. Such a market will go a long way to create a partnership between savers and creditors contributing to the creation of capital and economic development.

To know more

Explain the recent Capital Market reforms in India. - Brainly.in

https://brainly.in/question/2929048

Answer 2

How can the capital market create a better future for all. Pls as an essay or points.

Explanation:

The capital markets can create a better future for all.

The capital markets provide companies with access to capital that can be used for further expansion.

Households profit from capital markets through appreciation of stock/shares and dividends.