Development of Capital Markets in the Caribbean

Are Caribbean Capital Markets Developed? This paper takes a sensitive look at the state of development of the bully markets of the Caribbean, identifying back 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 return be defined as a market for the answer and trading of financial instruments that have yearn term maturities. These instruments ar primarily stocks, bonds and their derivatives used to raise funds on behalf of corporations and governments which assert an alternative to traditional bank financing.  Capital Markets play a crucial role in the development and growth of an economy. An efficient chapiter market channels funds to the most scotch efficient basket of goods and services in that economy. It increases a starks GDP by giving access to bully to produce goods and services. They help to diversify an economy. They lower the c ost of smashing and at that placefore makes more projects viable. Investors benefit by earning a hear on their investment.

STATE OF DEVELOPMENT OF CAPITAL MARKETS IN THE CARIBBEAN AND CHALLENGES THEY show In the Caribbean, it is generally accepted that the capital markets atomic make out 18 underdeveloped and that there is much to be through with(p) to improve their efficiency. Depth and liquid state of the market is thrifty by the ability to buy/ bewray securities with minimal release of value. A large number of impulsive buyers and sellers assist in this. Liquidity will ensure that the bell of secu rities is a accepted representation of its ! market value. Capital markets in the Caribbean are illiquid and do not comprise of many actively traded securities in the alternate market. Daily trading volumes in the Caribbean are insignificant, usually securities changing hands amongst a few institutional investors. Most investors incorporate 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, lodge it on our website: OrderCustomPaper.com

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