* Capital Market
* Stocks and Shares
* How to Invest in Capital Market
* Benefit of Investing in Capital Market
Capital Market:
Capital market is the broad term for the market where investment products such as stocks and bonds are bought and sold. It
includes all the people and organizations which support the process.
Shares: These are
the part-owner of a company and which can be used to secure a loan.
Stocks: These are
shares for trading at a profit and which can not be used to secure a loan because it can be sold at anytime.
How To Invest In Capital Market
There are many ways one can invest in capital market, either;
- Offer for Subscription
- Private Placement
- Offer for Sale e.t.c
The most common ways are:
* Buying of Public Offer Shares (i.e Primary Market)
* Buying of existing shares from stock broking firm at current market price
(C.M.P) (i.e Secondary Market)
Benefits of Investing in Capital Market
- It serve as a means of saving
- It serve as a source of income
- The share certificate can be used to secure loan from bank as a collateral
security.
- The stock can be sold anytime anytime at the stock market to raise funds
- It serve as a means of making profit
- It serve as a means of fund raising for an investor or company
