Welcome to the capital market
Many small and medium-sized companies share one particular need - to solve the financing of their business. See what opportunities the capital market offers to entrepreneurs and why it makes sense to be interested.
Capital market simply
Great idea is usually not enough for the development of a successful company. Above all, sufficient funding is necessary. Where to get them? The Capital Guide will advise you. See what you will find.
What is a capital market?
The most common capital markets are stock markets and bond markets. The instruments traded are mainly securities with maturities exceeding one year. (Short-term securities payable in one year or less are traded on what is known as a money market.)
What is the purpose of the capital market?
The capital market in its broad sense forms an essential part of every healthy and functioning economy. It facilitates the flow of financial resources (capital) from investors to businesses that can utilise the financial resources for the funding of their productive projects. As such, it complements financing from banks and from the businesses’ own resources.
Capital guide or brief introduction to non-banking capital market
The capital market in broad sense encompasses all movements of capital through the economy. The primary purpose of the capital market is to facilitate the flow of financial resources (capital) between investors and savers to businesses that can utilise the capital productively.
Banking institutions are the fundamental mediators of this flow of capital. They borrow financial resources from their clients and lend them to businesses to invest in productive projects. However, businesses can also take advantage of other ways, outside of the banking sector, of securing financial resources on the capital market.
These alternative options include in particular:
- Securities market where securities (e.g. bonds, shares) are traded.
- Private investors willing to provide loans (private debt) or invest directly in businesses.
- Innovative platforms operating online that mediate loans, issues of shares or bonds, or even the sale of a shareholding in a company.