The following article will highlight the five main changes in international capital market. The changes are: 1. Liquidity 2. Securitisation 3. Separation of Risk 4. Reduced Transparency 5. Changing Roles of Intermediaries. Change # 1. Liquidity: Changes in communication, computerisation and the increasing sophistication of modern finance allow large amounts of capital to be mobilised very rapidly. The ease with [...]
In this article we will discuss about capital market and its functions. In a very basic sense, a market matches the needs of sellers to those of buyers and establishes the price at which trades occur. In a capital market, lenders have preferences as to: (1) The maturity of the loans they make, (2) The ease and security of liquidating [...]
In this article we will discuss about:- 1. Meaning of Capital Investment Projects 2. Classification of Investment Projects 3. Importance and Use of Capital Budgeting 4. The Goal of Capital Investment 5. Conditions for Maximisation of the Value of the Firm 6. Evaluation of Capital Investment Projects. Meaning of Capital Investment Projects: Capital investment projects are those business projects that [...]