Capital Markets: Domestic and International Essays

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Capital Markets: Domestic and International Capital markets involve two parties in the midst of a financial process. There are domestic markets (markets in the US) and there are foreign markets (international such as Japan and China) that investors put much faith in. The term capital market is the market for securities and where companies and governments raise long-term funds, usually longer than a year. The market itself includes the stock market and the bond market. The capital market also includes the primary market (new issues are distributed to investors) and the secondary market (current claimed securities are traded). Without a financial market in place, borrowers would have much difficulty finding lenders themselves.…show more content…
The capital markets consist of the primary market, where new issues are distributed to investors, and the secondary market, where existing securities are traded. (Wikipedia, 2008) Domestic Market Most stocks in the US are traded on exchanges where buyers meet up and decide on prices. Some exchanges are physical while the others are virtual. The most impressive and notable exchange in the world is the New York Stock Exchange or NYSE. It was founded in 1792 when the Buttonwood Agreement was signed by 24 New York City stockbrokers and merchants. The most elusive and largest companies in America choose to trade with the NYSE. The NYSE was the first exchange where trading is done face-to-face on the floor. There is a trading post where there is a specialist who has the job to match buyers with sellers. Prices are then usually determined using the auction method (the present price is the highest price a buyer is wiling to pay and the lowest at which someone is willing to sell). The next type of exchange is the NASDAQ which stands for the National
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