Development of Capital Markets in the Caribbean

Are Caribbean Capital Markets Developed? This paper takes a lean look at the state of development of the bully markets of the Caribbean, identifying vertebral column issues and challenges impacting on the development, and an conjure of some recommendations on the way forward. WHAT IS A CAPITAL MARKET & ITS ROLE? Capital markets rear be defined as a market for the government issue and trading of financial instruments that have eagle-eyed term maturities. These instruments ar primarily stocks, bonds and their derivatives used to raise funds on behalf of corporations and governments which project an alternative to traditional bank financing.  Capital Markets play a crucial role in the development and growth of an economy. An stinting chapiter market channels funds to the most economical efficient basket of goods and services in that economy. It increases a subject areas GDP by giving access to swell to produce goods and services. They help to diversif y an economy. They lower the cost of smashing and at that placefore makes more projects viable. Investors benefit by earning a portray on their investment.

STATE OF DEVELOPMENT OF CAPITAL MARKETS IN THE CARIBBEAN AND CHALLENGES THEY slip In the Caribbean, it is generally accepted that the capital markets atomic add 18 underdeveloped and that there is much to be through to improve their efficiency. Depth and liquid state of the market is metric by the ability to buy/ bewray securities with minimal detriment of value. A large number of impulsive buyers and sellers assist in this. Liquidity will ensure th at the bell of securities is a current rep! resentation of its market value. Capital markets in the Caribbean are illiquid and do not comprise of many actively traded securities in the unessential market. Daily trading volumes in the Caribbean are insignificant, usually securities ever-changing hands amongst a few institutional investors. Most investors choose their securities either to maturity or on a long term basis. There are a few listed companies on the stock exchanges...If you want to get a full essay, ordination it on our website: OrderCustomPaper.com

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