Financing through the stock market Introduction

Financing through the stock market
Introduction
By selling long-term assets like bonds and shares, companies and governments may raise long-
term money via capital markets (debt or equity). This market focuses on long-term investments,
whereas other markets focus on short-term investments. Capital markets include the stock market
as well as obligations and equity securities, as specified here: (debt). Investors in Bangladesh are
protected against financial fraud by securities and exchange commissions such the Bangladesh
Financial Services Authority (BFSA) and the Bangladesh Securities and Exchange Commission
(SEC).
There are two types of capital markets: primary and secondary. Underwriting is a term used in
the financial markets to describe the practice of promoting new stock and bond issues to
investors. Secondary markets, such as the stock exchange, over-the-counter, or someplace else,
are where investors and dealers purchase and sell already existing securities. markets for used
goods such as
The capital market has a considerable influence on economic growth as a key component of the
financial system.
Long-term capital may be raised on the capital market by businesses and governments alike. In
addition to the stock and bond markets, there is a capital market. The growth of capitalism is
made possible by the existence of capital markets. There is a growing dependence on the scale of
global marketplaces for the economies of the globe. Everyone may now possess a share of the
country's riches thanks to this arrangement. The ability to continually uncover new sources of
income is one of the most enticing aspects of having many different methods to generate money.
In order to boost investor confidence, the markets promote more involvement. Continuous
information flow is essential for market efficiency, and the internet can provide that.
The many types of capital markets available to investors.

The Largest Audience
The primary market, which is part of the capital markets, is where new securities are offered for
sale. Companies, governments, and other public sector organizations may raise money via the
issuance of new stock or bond issues. Syndicates of securities dealers are often employed for this
purpose. The selling of fresh securities to investors is known as underwriting. An IPO, or initial
public offering, refers to the sale of a company's shares for the first time (IPO). The fee paid to
dealers is included in the investment cost, despite the fact that it is disclosed in the prospectus.
Long-term instruments produced in primary markets may be used by companies to borrow
money from the capital market.
A main market is one where fresh long-term equity capital is traded. The main market is where a
security is originally offered for sale. Thus, it is known as the "new issue market" (NIM).
Initial public offerings (IPOs) or "primary issues" are methods of issuing securities directly to
investors, in which a company obtains cash and then issues fresh certificates of deposit to the
individuals who bought them. To establish a new business or to grow or modernize an existing
one, the key issues of the firm are utilised. The primary market plays an important role in the
economy by facilitating the production of capital.
The fresh issue market does not include other long-term external funding possibilities such loans
from financial institutions. If you want to turn your private capital into public capital, you must
borrow money from the fresh issue market. To reclaim sold financial assets, you must be the
original owner.
Part II: The Aftermarket

The secondary market, also known as the aftermarket, is the financial market where previously
issued assets and financial instruments, such as stocks, bonds, options and futures, are bought
and sold. [1]. Another name for a product or asset with a customer base in a different market is
"secondary market""" (for example, corn has been traditionally used primarily for food
production and feedstock, but a "second" or "third" market has developed for use in ethanol
production). Another common use of the term "secondary market" is in reference to mortgage-
backed securities sold to investors like Fannie Mae and Freddie Mac.
An initial public offering (IPO) or an issuance of U.S. Treasury securities are examples of
situations when investors may purchase directly from the issuers rather than via a broker. After
the first issue, investors may acquire from each other on the secondary market.
The secondary market for a broad variety of assets, from loans to equities, may be either
fragmented or centralized, illiquid or extremely liquid, depending on the product. For publicly
listed firm shares, liquid secondary markets are best shown by the major stock exchanges.
Investors who hold stocks traded on the Dhaka and Chittagong Stock Exchanges have access to a
centralized secondary market. Over the counter trading is the most prevalent method of
purchasing and selling bonds and other structured assets. Borrowers may swap loans on a
website called a Loan Exchange.
Bangladesh's financial market
In the capital market, entrepreneurs who need money to start or build a firm may transfer cash
from savers (individuals and institutions) at affordable prices. Small investors like you and me