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Tag: advanced financial services and capital market course

7 Strategies for capital markets and secondary marketing

Posted on by Imarticus Learning

As the global economy becomes increasingly complex, it is more important than ever for businesses to have a solid understanding of capital markets and secondary marketing. These concepts are essential for companies that want to raise money by issuing securities.

 This blog post will discuss seven strategies that you can use in capital markets and secondary marketing. 

Here are seven strategies for capital markets and secondary marketing:

Strategy #01: Issuing Securities

When a company issues securities, it sells ownership stakes to investors. Various types of protection can be given, including stocks, bonds, and options. It allows businesses to raise money quickly and easily.

Strategy #02: Trading Securities

When a company trades securities, it buys and sells ownership stakes in the business to investors. You can do this over-the-counter (OTC) or in an exchange. The main advantage of trading securities is that it allows companies to access a larger pool of investors.

Strategy #03: Raising Money from Venture Capitalists

These investors provide capital to young companies. They typically invest in exchange for a stake in the company, and they often have a seat on its board of directors. The benefits of raising money from venture capitalists are providing a significant amount of capital and helping small businesses grow.

Strategy #04: Raising Money from Private Equity Firms

Private equity firms are investors who provide capital to established companies. They typically invest in exchange for a stake in a stable company, and they often have a seat on its board of directors. They can provide a significant amount of capital and help the company grow.

Strategy #05: Raising Money from Banks

Banks are institutions that lend money to businesses. They typically require collateral to secure the loan, and they charge interest on the loan. The main benefit of raising money from banks is providing significant capital relatively quickly.

Strategy #06: Raising Money from the Public Markets

The public markets are a collection of exchanges where companies can raise money by issuing securities. 

Strategy #07: Raising Money from Private Investors

Private investors are individuals interested in investing their money in a company to give a financial hand to the business, contribute to its growth, and get a return on their investment. Private investors are an essential source of initial money for enterprises.

Discover Capital Market Courses With Imarticus Learning

Our Diploma in finance management gives students a comprehensive understanding of the investment banking, capital markets, and risk management fields. Students will learn how these disciplines interact with one another and receive an edge over their peers by studying at IIM Lucknow’s top-notch business school!

Course Benefits For Learners:

  • Learn with an outcome-focused curriculum and practical learning method to allow students to build competence in critical domains such as investment banking, capital markets risk fintech. 
  • The program provides students with a chance to meet other like-minded individuals and learn from industry professionals. 
  • This Advanced Management Program in the capital market is for candidates who have a basic knowledge of finance but seek to expand their skills and learn more. 

What breeds success in financial services and capital markets?

Posted on by Imarticus Learning

Financial services and capital market courses are becoming increasingly in demand on a daily basis, as financial markets are one of the most significant components of any country’s overall economic structure. It is a meeting place between suppliers and demand in this business, just like any other market, where people seeking investment meet those seeking funding.

However, this isn’t its sole distinguishing feature. Financial markets aid in price creation, guarantee the liquidity needed by the system and, in general, allow economic actors to access the financial resources they need to finance their activity.

What are financial markets?

A financial market is a real or virtual location where investors may buy and sell financial assets. Its goal is to convert household and other investors’ funds into company investments or public finance in the most effective and transparent manner feasible.

The financial market activity took place on distinct exchanges where buy and sell orders were made until recently. However, thanks to the convergence of new technologies, it is now simple to function in the markets via telematics platforms, particularly via mobile devices or one’s own computer.

There are two major financial markets:

  • The primary market, also known as the issuance market, is where traded securities are first issued. Government bonds and corporate bonds, for example, are issued in this market.
  • The secondary market, also known as the trading market, is where primary market assets are purchased and sold. The stock exchange is the most well-known secondary market, where certain assets, such as business shares, fixed income instruments, derivatives, and other derivatives, are exchanged in real-time.

What financial markets are for?

Financial markets work in the same way that any other market does. They are attended by both savers and savers-to-be, and the price is fixed as a consequence of supply and demand convergence.

Markets provide at least four purposes:

  • To bring together those who want to sell something and others who want to purchase it.
  • Appropriately establish pricing for the asset-based on supply and demand.
  • To supply financial assets with liquidity.
  • Decrease maturities and intermediation costs, allowing assets to circulate more freely.
  • Favor effective resource allocation to decrease intermediation costs and maturities since this is the best avenue for quick communication between bidders and sellers.

Characteristics of financial markets

What breeds success in financial services and capital markets are the common defining characteristics that have the financial markets:

  • Transparency: Financial market assets are transparent in the sense that any investor may simply and rapidly access all of the information they want.
  • Market breadth: the bigger the number of assets exchanged on a financial market, as well as the number of investors that visit it, the greater the market’s width. 
  • Accessibility: There are no restrictions on who may acquire or sell assets. 
  • Market depth: the more buy and sell orders that are transacted, the deeper the market. 
  • Flexibility: If market players can respond swiftly to purchase and sell orders, the market is flexible. 
  • There are no transaction fees, like taxes, interest rate fluctuations, or inflation.

Volatility in financial markets

As previously stated, financial markets enable the development of prices that are determined by supply and demand. Asset prices typically fluctuate based on investors’ expectations of future returns, making them cheaper or more costly in the future.

Volatility is a fundamental feature of financial markets that has existed at all periods and in all historical contexts and is in some ways a gauge of their risk. The more the financial asset’s volatility, the higher the latent loss, but also the higher the gain.

Conclusion

Any civilized country has a sufficiently developed financial system, where markets play an essential role in guaranteeing the flow of resources between suppliers and demanders. At Imarticus we offer great capital market training courses that fall within our advanced management program in financial services and capital markets. Visit our page today to start your career and be part of the development of the financial system of our society.