The Role and Performance of UK Capital Markets

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ABSTRACT

In this paper we are going to evaluate the importance and performance of Capital Markets in UK as an alternative source to Bank Finance. It is very necessary to understand the role and measure the performance of the Capital markets of UK as a Bank Finance.

Table of Contents

ABSTRACT2

Table of Contents3

CHAPTER1: INTRODUCTION1

Background1

Rationale2

Research question2

Key words2

UK Capital Markets, banking Finance, Risk Assessments2

CHAPTER2: LITERATURE REVIEW3

The function of financial markets in the economy3

Banks4

Institutional investors5

The issuance of securities6

Custodians7

Market operations7

Trading rooms8

Speculation and arbitrage9

Role and Evaluation of Capital Market as an Alternative Source to Bank Finance9

CHAPTER 3: METHODOLOGY13

Research Design13

Literature Search14

Reference15

CHAPTER1: INTRODUCTION

Background

From an institutional point, of view of international capital market and money both are combinations of financial institutions through, which the movement of loan capital in international economic relations are carried. These institutions include private firms, banks, especially TNC, and TNB, stock exchanges, government and municipal authorities, international and regional monetary and financial institutions, regional development banks, etc. International money market is a sector of the financial market in which stocks are bought and sold short-term debt (maturity of less than one year).

Securities in the money market is usually bought and sold more than long-term securities, and therefore, this market. In addition, short-term securities are characterized by lower price volatility than long-term, making them safe for investment. As a result, corporations and banks are actively using the market for interest on excess funds (Hung, Shackleton, 2004, pp.87-112).

Instruments of the international money market are: the state treasury bills, negotiable certificates of bank deposits, commercial paper, bankers' acceptances, repurchase agreements, Federal Reserve funds, Eurodollars, etc.

International money markets differ according to the territorial and monetary grounds. In the first case, we are talking about the national money markets. Buyers and sellers on them there are representatives from other countries. These international financial markets operate in New York, London, Paris, Frankfurt, and Zurich.

Rationale

Statistics is well established that in the UK, Capital markets are in a subordinate position and status of finance bank. They are performing well according to the criteria which are expected. It has been satisfying many people living in UK and internationally with their services.

Research question

• An evaluation of the role and performance of UK capital markets as an alternative source to bank finance.

Key words

UK Capital Markets, banking Finance, Risk Assessments

CHAPTER2: LITERATURE REVIEW

The function of financial markets in the economy

A market is the place to meet a supply and demand of a certain good. In this case, the property taken is money. On the capital market, holders of the offer are agents known as "positive savings capacity", i.e. households primarily (as surprising as it sounds!) Applicants are firstly States; the modern welfare state requires considerable investment and other business course: what are the agents known as "in need of financing." (Hansen, Richards, 1987, pp.587-613)

Far from an abstract entity and often described as irrational and all-powerful at the same time, the capital market is actually driving the economy, since it is the place where fuel, money will be used to propel the machine forward, that ...