Portfolio investment in the capital market is the acquisition of financial assets (which includes stock, bonds, deposits, and currencies) from one country in another country. Debt securities include federal government development stock (GDS), industrial loans, preference stocks, bonds e.t.c, while equity securities mainly concern ordinary stocks which impose higher liabilities on the holders. Securities are primarily of 2 types: debt and equity. The stock market embraces trading in both new issues (primary) and old issues of stocks (secondary). The stock market is the aspect of the financial system which mobilizes and channels long term funds for economic growth. Companies which go public are subject to continuous cost of providing financial information, transferring shares, paying dividends, and other aspects of shareholder relations.
Stock market project for students registration#
The stock market is usually funded through fees paid by investors and issuers even the expenses of the securities commission may be partially paid for by registration fees rather than being a major burden on the government budget. The intermediaries receive their fees from the issuers or investors to whom they provide a service. Virtually all costs are borne by those who benefit. An organized securities market requires a securities exchange, a securities commission or other regulatory agency, and intermediaries such as dealers, brokers, securities analysts, etc. At the same time, the stock market gives investors an opportunity to invest in these companies and benefit from any profit they can make.Ī stock market can also be called a capital or securities market as it encompasses the stock exchange, the branches, and the stockbrokers. Companies raise money by selling shares or stocks to investors.
Primarily, a stock market is the place where companies can raise money to make their businesses bigger and better.