US Capital Market is one of the strongest markets of the world. With the emergence of globalization, the different world markets are more or less unified now. This has not only provided new markets for the traders but also increased the inter-country capital flows.
According to several surveys, at least 85% of the net capital flows are directed towards the United States of America.The capital market refers to the market of stocks, bonds and other financial instruments. The global capital market is growing at a rapid pace and US capital market is leading in this field. The securities market in US is at present doing exceptional business.
The stock market of United States of America is worth $18 trillion and the US bond market is worth $24 trillion.The economic condition of the country is beyond any question. There are several industries and banks which are enjoying huge profits from the market.
At the same time, the stock indexes are also showing the growth in their indexes. The Dow Jones Industrial average is setting new records. On the other hand, New York Stock Exchange and NASDAQ are willing to purchase some of the big European stock exchanges.
Again the Chicago stock exchanges are merged to make a big derivative market. Because of all these, the US capital market is leading from the front and providing enough support in the global capital market’s development.
In the recent past, US capital market dominated the whole world. But with the emergence of Eurozone as a new financial power, the market balance is shifting a bit. Because of the competition provided by the counterparts, several positive changes are taking place in the US capital market. The rules and regulations regarding the capital markets are expected to be revised in the country. The US capital market is still leading in hedge funds and mutual fund assets. The US securitisation, equities, and exchange traded derivatives market are still at the top. In terms of IPOs, the US capital market is performing well but needs to do a bit more to share the same platform with the London and Hong Kong stock exchanges.
Last Updated on : 5th July 2013