Global Capital Market

1) Explain the function of global capital market

Before we discuss the function of global capital market, we`d better consider about generic capital market first. Basically, the generic capital market is the fundamental and essential factor to support such a modern economy. To do business or manufacture products or manage a company, we have to depend on generic capital market to maintain business and make a profit of company. It`s impossible to manage company or business without support from generic capital market. Actually, commertial banks and investment banks play a role to connect both by different way. A capital market brings together those who want to invest money and those who want to borrow money. Those who want to invest money include corporations with surplus cash individuals, and non bank financial institutions. Those who borrow money include individuals, companies and government.
why do we need a global capital market? Because domestic capital markets are not suffici...