Bank & Capital Market Law
Markets are places where certain values or traded instruments and the market is a place where supply and generate demands. Also on the capital market traded equity ie. shares and debt or bonds. In fact, in the very early days of the emergence of finance markets, the majority of the funding is done through the banks rather than through finance markets. The main reason was not the confidence and poor market liquidity. In the last ten years, financial markets have begun to spread and cause the creation of „new markets“. A center they were in New York and London. To finance the expansion of the market is, in fact, one of the reasons that caused the emergence of international capital markets. The international capital market finance segment of the market which traded long-term financial assets. In other words on it are organized and face supply and demand, ie. on it is offered and claimed capital on a long-term basis, or issued and traded securities valuables.Market on which we are seeking capital and by long-term basis, we call primary capital market, which has its essential functions such as creating a new issue of capital and their placement and sales. So we can conclude that the primary capital market, sales of high-speed long-term financial assets and therefore increases the degree of liquidity. A market in which trading has already issued securities are called secondary capital market, which enables continuous relocation ie. normal flow of funds between the various investors in order to be one possible sale of assets while the others allow purchases using their own surplus funds. The capital market consists of three markets:
Credit-investment market, where nude and demand long-term and investment loans;
The mortgage market, in which the nude and require long-term loans based on mortgage collateral;
The market of long-term securities, this market is in practice also called market effect.
There is a great interdependence of these markets, in fact, it is impossible to develop the secondary market without the existence and development of the primary market, and vice versa.
So the capital market is an essential element financial market. Without the capital market and the information it produces is more difficult to identify social investment alternatives. The capital market, on the one hand, is a neutral mechanism that regulates the efficiency of business entities that are in circulation on the other hand constantly valorized investment alternatives. Specifically, companies offer investment alternatives with the aim of achieving objective limitations of financial resources, offering a higher price but also higher income, for which payment is required or a high level of profitability and efficiency. Competition is an important factor because it allows evaluation of both financial resources and investment alternatives. And thus affect the costs in terms of allocation of financial resources to the best market alternative. So the essence of the market capital is to maximize the benefits of the entity or investors and savings entity. Also, capital markets allow investment competition in developed market economies. International capital markets allowed the placement of issued shares of the global market. The place where supply and demand meet long-term capital that is where I provide long-term capital claimed by the international capital markets.