Dictionary of Capital Market

Efficient capital markets are an important constituent of sound financial systems. Capital markets channel household savings to the corporate sectors and allocate funds to firms. In this process, both firms and households share risks associated with business. Moreover, capital markets enable the valuation of firms on an almost continuous basis and play an important role in the governance of the corporate sector. The dynamics of capital markets require changes in the laws, rules, and regulations on a continuing basis. Consequently, new terms and concepts and their definitions are added to the capital market lexicon on a regular basis. This dictionary is designed to provide a useful, reliable, readable, and single source guide to the all-important field of capital markets. It provides simple and comprehensible definitions and explanations of terms used in this area. The terms, concepts, and usages are given their most common definition. Readers will also find helpful illustrations of important terms.