In the secondary market, existing securities are sold and bought among investors or traders, usually on an exchange, over-the-counter, or elsewhere. The main entities purchasing the bonds or stock include pension funds, hedge funds, sovereign wealth funds, and less commonly wealthy individuals and investment banks trading on their own behalf. Governments issue only bonds, whereas companies often issue both equity and bonds. The main entities seeking to raise long-term funds on the primary capital markets are governments (which may be municipal, local or national) and business enterprises (companies). In a primary market, new stock or bond issues are sold to investors, often via a mechanism known as underwriting. Physically, the systems are hosted all over the world, though they tend to be concentrated in financial centres like London, New York, and Hong Kong.Ī capital market can be either a primary market or a secondary market. Entities hosting the systems include investment banks, stock exchanges and government departments. There are many thousands of such systems, most serving only small parts of the overall capital markets. Various private companies provide browser-based platforms that allow individuals to buy shares and sometimes even bonds in the secondary markets. However, sales to individuals form only a small fraction of the total volume of bonds sold. As an example, in the United States, any American citizen with an internet connection can create an account with TreasuryDirect and use it to buy bonds in the primary market. Transactions on capital markets are generally managed by entities within the financial sector or the treasury departments of governments and corporations, but some can be accessed directly by the public. Securities and Exchange Commission (SEC) oversee capital markets to protect investors against fraud, among other duties. Financial regulators like Securities and Exchange Board of India (SEBI), Bank of England (BoE) and the U.S. Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments. Most of the trades on the New York Stock Exchange are executed electronically, but its hybrid structure allows some trading to be done face to face on the floor.Ī capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold, in contrast to a money market where short-term debt is bought and sold. The Calibrated Strike Price is registered by the Contractual Counterparty in the Secondary Market Transaction as contractual parameter available in Capacity Contract Annex A (according to the Chapter Secondary Market Section 5) and is represented by □□□□□□□□□□ □□□□□□ □□□□□ (□□□□□, □□□□□□□□□□□□□, □).The trading floor of the New York Stock Exchange, one of the largest secondary capital markets in the world. Notwithstanding anything herein to the contrary, the Borrower’s indemnification obligations to the parties specified in Section 9.1.4 hereof with respect to any securitization or Secondary Market Transaction described in Article IX hereof shall be limited to the indemnity set forth in Section 9.1.4 hereof.Īll news releases, publicity or advertising by the Borrower or Borrower Affiliates through any media intended to reach the general public, which refers to the Borrower Loan Documents or the Funding Loan Documents, the Borrower Loan, the Funding Lender or the Servicer in a Secondary Market Transaction, shall be subject to the prior Written Consent of the Funding Lender or the Servicer, as applicable. The Borrower understands that certain of the Provided Information and the required records may be included in disclosure documents in connection with a Secondary Market Transaction, including a prospectus or private placement memorandum (each, a “Secondary Market Disclosure Document”), or provided or made available to investors or prospective investors in the Securities, the Rating Agencies and service providers or other parties relating to the Secondary Market Transaction. The Funding Lender and the Servicer (and any Affiliates of either party) shall have the right to issue press releases, advertisements and other promotional materials describing the Funding Lender’s or the Servicer’s participation in the making of the Borrower Loan or the Borrower Loan’s inclusion in any Secondary Market Transaction effectuated by the Funding Lender or the Servicer or one of its or their Affiliates. Examples of Secondary Market Transaction in a sentence
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