a. Public Companies: Companies (limited liability) that desire to raise money for business expansion and development projects through public and individual investors can access the capital market. Some of these companies are:
i. The stock exchange
ii. Issuing houses
iii. Insurance companies
iv. Development banks
v. Building societies
vi. National provident fund (NPF)
vii. Pension funds
b. Government: The government may also wish to raise capital from the private sector for development purposes or as a fiscal measure. It does this by issuing government bonds to members of the public.
Bonds are legal documents representing a promise by the government to pay back a loan obtained through the issue of bonds plus a certain amount of interest over a definite period of time.
Evaluation Questions
- Explain your understanding of the capital market
- Enumerate four methods of leasing
- List four bodies (companies) that can access the capital market
- Describe bull, bear, and stag
- Differentiate between a bull and bear
- Mention two ways of raising funds in the capital market
Responses