Capital Market Institutions - SS2 Economics Lesson Note

Capital market institutions are financial institutions that facilitate the buying and selling of long-term financial instruments, such as stocks and bonds, which are used to finance long-term investments. These institutions provide a platform for companies and governments to raise capital from investors by issuing securities.

Examples of capital market institutions include stock exchanges, investment banks, and mutual funds. These institutions assist companies in issuing and selling stocks and bonds to investors. They also provide research and analysis on companies and securities to help investors make informed investment decisions.

Capital market institutions also facilitate the secondary trading of securities, allowing investors to buy and sell stocks and bonds on an ongoing basis. This helps to increase liquidity and transparency in financial markets and enables investors to adjust their portfolios based on changing market conditions.