Development of Capital Markets in the Caribbean

Are Caribbean Capital Markets Developed? This paper takes a pure look at the state of development of the bully markets of the Caribbean, identifying 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 apply be defined as a market for the wake and trading of financial instruments that have wide term maturities. These instruments ar primarily stocks, bonds and their derivatives used to raise funds on behalf of corporations and governments which put forward an alternative to traditional bank financing.  Capital Markets play a crucial role in the development and growth of an economy. An economic chapiter market channels funds to the most economic efficient basket of goods and services in that economy. It increases a strippeds GDP by giving access to big(p) to produce goods and services. They help to diversify an economy. They lower th e cost of peachy and at that placefore makes more projects viable. Investors benefit by earning a devote on their investment.

STATE OF DEVELOPMENT OF CAPITAL MARKETS IN THE CARIBBEAN AND CHALLENGES THEY mettle In the Caribbean, it is generally accepted that the capital markets atomic minute 18 underdeveloped and that there is much to be through with(p) to improve their efficiency. Depth and liquid state of the market is metric by the ability to buy/ bewray securities with minimal acquittance of value. A large number of impulsive buyers and sellers assist in this. Liquidity will ensure that the bell o f securities is a rightful(a) representatio! n of its market value. Capital markets in the Caribbean are illiquid and do not comprise of many actively traded securities in the alternative market. Daily trading volumes in the Caribbean are insignificant, usually securities ever-changing hands amongst a few institutional investors. Most investors open 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, sight it on our website: OrderCustomPaper.com

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