Capital Market Research

Capital market research is an essential activity for companies because it enables them to provide products and services that are useful for the targeted consumers. Such a focused and logical approach enhances the profit making possibilities of companies.
The companies can earn more dividends and at the same time minimize risks as a result of research on capital markets. One big advantage of capital market research is establishment of proper communication between the companies and the customers. The customer reactions to various services provided by the companies can be measured as a result of capital market research.

The companies can thus do away with wrong policies and look to take the right steps. The companies can also locate the right opportunities through market research. If the company undertakes capital market research before launching a new product or service then it stands a better chance of getting a good return. Risk minimization is another reason for undertaking capital market research.
Through this research, the exact needs of the market and the general public can be gauged and the products and services can be made very demand oriented.
The companies can also analyze whether they are making progress in the right direction. Capital market research should be done as early as possible in order to avoid problems in the future. Before investing in the stock market,capital market research needs to be undertaken. Research involves finding the companies and stock prices that would best suit the financial situation of the investor. The company profile needs to be studied and the size of the company is another important parameter of stock market investment research.

Gathering information on the history of the company is another facet. Its history of profits and popularity and its performance in the past must be analyzed before investing in the shares of that company. Research on the products and services of various companies is also very important. Investments should be made for the long term. This minimizes risk and increases profitability. Lastly, investment should be made wisely and regularly and this results from a good capital market research.

Five Streams of Capital Market Research:

  • Market Efficiency
  • Feltham-Ohlson Modeling
  • Value Relevance
  • Analysts Behavior
  • Discretionary Behavior

More Information About Capital Market

Primary Market Secondary Market Primary Vs Secondary Market
Global Capital Market Capital Market Companies Capital Market Reform
Venture Capital Market Capital Market Transactions Capital Market Line
Capital Market Services Capital Market Securities Capital Market Liberalization
Secondary Infrastructure Fund Capital Market Risk Capital Market Integration
Capital Market Instruments Equity Capital Market Efficient Capital Market
Debt Capital Market Capital Market Consultants Capital Market Conditions
Market Regulation Committee Capital Market Assumptions Capital Market Trends
Capital Market Theory Role Of Capital Market Risk Advisor
Capital Market Regulations Capital Market Investment Capital Market Research

Last Updated on : 22 July 2016