Capital Market. They are made up of a series of participants who buy and sell shares and credit instruments in order for the financiers to meet their capital needs and investors to place their excess capital in businesses that generate returns.
Summary
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- 1 Mission
- 2 Objective
- 3 Features
- 4 Functions
- 5 Capital market instrument
- 6 Importance
- 7 Elements that carry out its operation
- 8 Sources
- 9 External links
Mission
Facilitate the intermediation of financial instruments and disseminate the information required by the market in a competitive manner, ensuring transparency and efficiency within a self-regulated framework and in accordance with legal and ethical principles, relying on the best human resources and the solvency of the shareholders.
objective
Its main objective is the provision to the public of all the services necessary to carry out in a continuous and orderly manner the operations with securities subject to negotiation in the Capital Market, in order to provide them with adequate liquidity .
characteristics
- They are a barometer, compass or thermometer of the country’s economy.
- Its indicator indicates not only what is happening, but what is going to happen in the world of finance .
- It is the place where the laws of supply and demand are best followed.
- The anonymity of buyers and sellers is maintained.
Features
- Facilitates the transfer of resources from excess savers or agents
liquidity, to investments in the productive sector of the economy.
- Allocate resources to the financing of companies in the productive sector.
- It offers a wide variety of products with different characteristics according to the investment or financing needs of the agents participating in the market.
Capital market instrument
- Ordinary Certificates of Participation on shares.
- Obligations convertible into shares.
- The medium-term promissory notes and
- The bonuses
Shares are securities that represent part of the capital stock of a company.
Importance
It is extremely important for the economic development of a country since it constitutes a source of financing that can be accessed by entities from the public and private sectors to obtain the resources they require to undertake new projects or to restructure their liabilities and become more efficient and competitive.
Elements that carry out its operation
The elements that carry out the operation of the capital market are:
- National Securities Commission: it is the organism that was created by the capital market and is in charge of the promotion, supervision and control of the securities markets.
- Caja de Valores : it is the one in charge of the exchange of values, so that it is at the exact date of the liquidation of the transferred values.
- Stock Market : the mission of the stock market in favor of this market is that they are a second market since this is an institution that has to do with the exclusive negotiations of convertible stocks and securities.
- Issuing entities
- Intermediaries
- Brokerage house.
- Securities Broker
