Global capital market is gaining depth everyday. With the development of the global markets, the liquidity of the global capital markets are also growing at a rapid pace. Several surveys have shown that the financial stocks are growing worldwide and the growth rate of the financial stocks are much more than the growth rate of the global gross domestic products.
Capital market denotes the securities market where the stocks, bond and several other derivatives are traded. This market provides necessary fund to the companies as well as to the governments also. Both long and short term debts are raised from this market. At the same time, the capital market provides the investors with the opportunity to make regular income from the market.
The development of the global capital market can also be traced by several other facts. The financial holdings of the globe is growing quickly. It is estimated to be somewhere around $140 trillion and this amount is expected to cross $200 till the end of 2010.
With the emergence of the concept of globalization, the diversified world market has been changed into a single market and this is promoting inter-country trade. This inter-country trade is adding new heights to the global capital market because the capital flow is increasing with the unification of the markets. United States of America, Europe and Britain shares almost 90% of this capital flow.
In these circumstances, United States of America is playing a vital role in the development of the global capital market. US alone is the destination of 85% of the net capital flows of the globe. Britain is also playing some significant role in the market. On the other hand, the emergence of Eurozone as a financial power is causing some positive changes in the global capital market. The financial condition of the Eurozone is also changing very rapidly. This change can shift the pillars of the world economy because Eurozone is expected to stand on the same financial platform with America and Great Britain very soon.
For further details please check the following links: