Methods of raising funds capital market

samual

Active member
Fist of all. What is capital market?
A capital market is for investing funds in debentures, shares, bonds, etc. of the companies .investors can invest their funds in a safe and profitable manner through stock exchange.
Method of accessing means a way of getting to a place firms and institutions can raise medium and long term funds by way of tradable security and non tradable securities. Methods of raising funds for capital market in other to make money is.
1. Public issue
2. Right issue
3. Private placement
4. Offers for sale
5. Venture capital
6. International issue
7. Bond's issue by financial institution
8. Obtaining term loans
Now let's explain some of this methods
1. Public issue : in a capital market, companies borrow fund from primary market by way of public issue of shade and debentures. To manage it's issue, a compared to other methods
2. Right issue : In capital market, right issue means selling securities in primary market by issuing to existing shareholders.
3. Private placement :the capital issue is directly to a small group of investors. Mainly institutions investors like insurance companies, bank ,mutual funds, few private investor and so on.
The way investors can invest their funds in a safe and profitable manner is through stock exchange.
 
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