Komal raul

Ty BMS

Pl SHROP college
Assignment of Bombay stock
exchange Brokers forum
Topics :
Analysing major factors
before entering capital
market
Factors of Capital Market
The term capital market refers to facilities and
institutional arrangements through which
long-term funds, both debt, and equity are
raised and invested. It consists of a series of
channels through which savings of the
community are made available for industrial
and commercial enterprises and for the Public
in general. Factors of capital market are those
financial, investments, regulatory organization
which a capital market is formed and operated.
The factors in this market are as follows:
Stock exchange: Stock exchange is the main
factor of the capital market. Share, bond,
debenture, securities, and other financial
instruments are traded on stock exchange.
Investment Corporation: Investment
corporations help industries for
providing a long-term loan. These
corporations buy a share, debentures,
etc. and finance in the corporations to
raise funds.
Investment trust: Investment
trust collets individual
savings from households and
lends it to the capital market.
It is a good way for small
individual savings to be
invested in this market.
Commercial banks: Commercial banks usually
deal with short-term loans. But nowadays it
disburses long-term loan also. So, commercial
banks also participate in this market.

Industrial banks: Industrial banks are

providing long-term loan for different
industries. It plays a vital role in
establishing new farms.
Issue house: Issue house it another
important factor of the capital market. Issue
house helps corporation an issuing share
and debenture and their efficient trading.
Issue house sometimes takes the charge to
issue and sell the shares, bonds, debentures
etc, on behalf of the corporations.
Foreign organization: Some foreign
organization also takes part in the capital
market and contributes a lot to the
development of the country.

Broker houses: Broker house helps in

trading financial instruments among the
investors and corporate organization.
Broker house acts on behalf of both parties.
Government: Government is the key factor in the
capital market. Govt. regulates the capital market.
Govt. is not only regulates but also provides money
for industrialization. Sometimes it collects money
from capital market as well.
Promoters: Promoters are themselves who
established Joint Stock Company by taking the
duty of supplying initial capital. Promoters
have great importance for industrialization for
any country.
Managing agents: Managing agent is another
factor of the capital market. Managing agents
are taking responsibilities to do contract for
providing a long-term loan to the company.
Managing agents take charge of selling shares
or taking risk of a company which minimizes the
risk of a company.
Specialized financial institutions: Some
specialized financial institutions are also
played important roles in the capital
market, these institutes play spec ilk roles
in the capital market and development of a
country.
Clearing Houses: Clearinghouse is
another factor of this market. It
resolves the dues among various
financial institutions.

These are some factor the of capital

market that help to operate the
market effectively and efficiently
and help to the development of
capital market and country also.