{"id":1225,"date":"2022-05-13T15:11:00","date_gmt":"2022-05-13T15:11:00","guid":{"rendered":"https:\/\/www.guiadoemitente.pt\/?p=1225"},"modified":"2022-08-10T13:33:29","modified_gmt":"2022-08-10T13:33:29","slug":"3-1-role-and-functions-of-the-capital-markets","status":"publish","type":"post","link":"https:\/\/issuers-guide.buzzvel.work\/en\/3-1-role-and-functions-of-the-capital-markets\/","title":{"rendered":"3.1 Role and functions of the capital markets"},"content":{"rendered":"\n<p><em><strong>Capital markets bring buyers and sellers together to trade stocks, bonds, currencies, and other financial assets. Market-based finance promotes the transformation of ideas into entrepreneurial initiatives and small businesses into big companies<\/strong><\/em><\/p>\n\n\n\n<p>Capital markets have evolved and now offer a wide range of products to fill the different needs of companies, while providing information transparency and legal certainty for all market participants and enhancing liquidity of all products traded. Their main functions are to:<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"has-azul-3-color has-text-color wp-block-heading\" id=\"heading-1\">Finance the economy<\/h3>\n\n\n\n<p>Capital markets offer continuous availability of funds to finance companies, by linking companies, savers, and investors, facilitating transaction settlement, promoting saving habits, and channelling part of the savings into new and attractive investment opportunities. Such process contributes to the financing of the economy while improving the effectiveness of capital allocation, supporting innovation, and facilitating entrepreneurship.<\/p>\n\n\n\n<h3 class=\"has-azul-3-color has-text-color wp-block-heading\" id=\"heading-2\">Promote liquidity in the markets<\/h3>\n\n\n\n<p>Capital markets provide the possibility to invest in securities with different risk profiles, appealing to different investors\u2019 preferences. Accordingly, the capital markets facilitate the movement of capital and liquidity, given the possibility to invest and divest through the purchase and\/or sale of the securities in the market.<\/p>\n\n\n\n<h3 class=\"has-azul-3-color has-text-color wp-block-heading\" id=\"heading-3\">Easily quantify and regulate securities\u2019 prices<\/h3>\n\n\n\n<p>Capital markets enable real time assets\u2019 pricing, by having prices determined by matching supply and demand.<\/p>\n\n\n\n<h3 class=\"has-azul-3-color has-text-color wp-block-heading\" id=\"heading-4\">Provide an alternative to bank-based financing<\/h3>\n\n\n\n<p>Capital markets minimize transaction and information costs for issuers and investors, and may provide a \u201chealthier\u201d alternative to companies, when compared with bank-based financing.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Capital markets bring buyers and sellers together to trade stocks, bonds, currencies, and other financial assets. Market-based finance promotes the transformation of ideas into entrepreneurial initiatives and small businesses into big companies Capital markets have evolved and now offer a wide range of products to fill the different needs of companies, while providing information transparency [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2723,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1225","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-1"],"acf":[],"_links":{"self":[{"href":"https:\/\/issuers-guide.buzzvel.work\/en\/wp-json\/wp\/v2\/posts\/1225","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/issuers-guide.buzzvel.work\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/issuers-guide.buzzvel.work\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/issuers-guide.buzzvel.work\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/issuers-guide.buzzvel.work\/en\/wp-json\/wp\/v2\/comments?post=1225"}],"version-history":[{"count":12,"href":"https:\/\/issuers-guide.buzzvel.work\/en\/wp-json\/wp\/v2\/posts\/1225\/revisions"}],"predecessor-version":[{"id":2505,"href":"https:\/\/issuers-guide.buzzvel.work\/en\/wp-json\/wp\/v2\/posts\/1225\/revisions\/2505"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/issuers-guide.buzzvel.work\/en\/wp-json\/wp\/v2\/media\/2723"}],"wp:attachment":[{"href":"https:\/\/issuers-guide.buzzvel.work\/en\/wp-json\/wp\/v2\/media?parent=1225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/issuers-guide.buzzvel.work\/en\/wp-json\/wp\/v2\/categories?post=1225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/issuers-guide.buzzvel.work\/en\/wp-json\/wp\/v2\/tags?post=1225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}