Developments in Capital Markets



Developments in Capital Markets - Summary

Introduction

Developments in Capital Markets, is an interesting article whose main theme is development of the capital market in the developing countries especially Latin American and how they respond to the worldwide changes. As we know that there has been dramatically change in the stock market of the developed countries which ultimately impact on the developing countries. As the market is maturing, more financial instruments and services have considerably been increased. For G-7 countries, the sum of credit to the private sector by financial institutions and stock market capitalization has been increased to 260 % over GDP (Brasoveanu L., Dragota V., Catarama D., Semenescu A., 2008).

The capital market of Latin America is poor when it comes to the improvement of the macro-economic environment and institutional reforms. The focus of this article is to see where we are and what the future is with respect to the world capital market development. The article initially discusses the capital market evolution and re-forms in due course and across regions and with the focal point of Latin America experience. Moreover, it also discusses the factors that are related to the capital markets development. And lastly, out-look of the development of capital market in the emerging economies and global financial system.

Discussion

Stock market has experienced massive ups and downs in the past decade. These events have affected their value and future estimates. In 1990s, policy maker and economist had an immense expectation regarding the scenario for the domestic development of the capital market in the emerging economies. Regrettably, they had experience an unsatisfactory results. Majority of the bond and share market remain illiquid market for the countries. At the end of the short term spectrum, debt leads to be intense and title in foreign current, which expose ...