Executive Summary: The Capital Market In Canada

Introduction

“Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc. The buying/selling is undertaken by participants such as individuals and institutions.” (Times, n.d.) As it describe capital market is the market which trade with the medium-long-term financing, the trade usually use the securities such as bonds,stock etc. The actor of the capital market are the companies but the intitution also use the capital market, such as the government. How does the capital market work ? The capital market consist with the two markets, the primary market and secondary market. In the primary market, the trade usually deal with the new issues of the securities or stock and the secondary market,

The transparancy and market integrity is the important thing, because with the transparancy in the market it help the firms knowing the market price, amount and the general public with that it help the firms to know the standart in the market itself, without the tranparancy it hard for the firm to jump into the market itself. The transparancy between the government and the firm is important, especially the transparancy to the public, because as we know that mostly the households in Canada distribute their savings to the firm and governments. Then, without transparancy the market would be fallen and the public will lose their trust and take their money backs. Beside that, we need the market integrity. The integrity between the firms and the government are very important because with the integrity in the market then the government and the firms can work together to increase the growth of the economic of Canada. Then, with the integrity in the market the firms and the government can actually worked to prevent the fraud happening between the firms and the

Well, during the year 2005 the transaction in the market of Canada still has the high transaction volume but after 2005, slowly the transaction has decrease because of the announcement of the Canadian federal governments about the Specified Investment Flow-Through (SIFT) tax on income in the late of 2006, 2007 is the year when the income of the trust is the actual of IPO activity in Canada itself. However, during the year 2003-2013 the small and mid-sized IPOs seen increase (Lee & Innes, 2014) and it help the Canada during the crisis over year 2008, which is in that year it fallen of the U.S. IPOs market.

Then how Canada market compare with the global market ? Canada seems quite enough compete alongside with Hongkong, United States, United Kingdom and Australia. The graph will show you how Canada compare with the global market.

In the market measures Canada has 12th, however in the number transaction Canada get the 5th along side with the United States, Hongkong, United Kingdom and Australia. By seeing that the number of the transaction volume Canada half from the United Kingdom, Quarter from the Hongkong and less than tenth volume with the United States, it clearly seen that Canada still rely on the mining,