Capital Markets

Every Business needs a capital to start their business. A new open business will not be working
without a capital. Capital plays a vital role in every businesses operations because capital what
they need to cover their expenses in relation to the assets that they will need to function their
business. But how can a business earn a capital? Where can the aspiring business owner go in
case they need a capital?
Businesses can earn capital to funds their business through capital markets. Capital Markets is a
section of the financial system used for raising capital through the trading of bonds, stocks, and
other long-term investments. Capital Markets support the development of entrepreneurs and
the expansion of small firms into larger ones. Additionally, they provide people an opportunity
to invest in and save for the future. Also, it lower the cost of doing business by offering a steady
flow of capital or liquidity to the world economy. Capital Markets effectively connect borrowers
and lenders and assist in allocating resources to build a strong national and international
economy. They supply crucial capital that has an impact on people’s lives in. A variety ways,
such as by enabling people to start a new businesses, grow existing ones or invest for the
future.
In conclusion, having a knowledge about capital markets is very essential especially to those
individual who dream to enter into the business world. As a student who also want to become a
business owner and accountant someday, it is important that I have knowledge about how
capital market works because if someday I decided to open and invest a money to a capital
markets, it is not easy for them to deceive me and it will be easy for me to avoid risks in the
capital markets because I already know how this type of markets work. Investing in a capital
markets is not easy specially when you don’t have enough knowledge about it because even
though capital markets reduces risks and expense in acquiring financial capital but once you are
not knowledgeable enough some people can deceive you.