ipl-logo

What Is The Biggest Capital Market In The United States

603 Words3 Pages

United States Capital Market

The United States has the world’s largest economy, which means it has the biggest capital markets; it holds 47% of the world stock market. Unlike other countries after the world wars the United States suffered less disruption to its markets compared to European and Asian markets. On the contrary the US benefited greatly from these wars.
The US stock market is worth $18 trillion and its bond market is worth $24 trillion, which shows how strong the US market really is.

How the Capital Market works.

Capital markets in the United States are the driving force of capitalism. In order for companies to acquire funds for their businesses and projects, they sell securities – stocks and bonds in the company’s name …show more content…

They are the tools that generate funds for companies and governments. They are stocks, corporate bonds, United States Government bonds and securities, and finally mortgages.

Stocks: When a person buys a stock it means he acquires some of the company’s assets and earnings. A stock has two main types: common and preferred. Common stock allows the shareholder to vote in company meetings and collect dividends. Preferred stock doesn’t allow its holder to vote but has a higher claim on assets; they have the priority in receiving dividends.

Corporate Bonds: Corporate bonds are debt securities issued by corporations to finance capital investments. They are riskier than government bonds and thus have higher interest rates. Corporate bonds are the largest in the US bond market and they can easily issue bonds in the secondary markets, which creates liquidity for investors.

United States Government bonds and securities: When a person buys government securities it means he lends money to the federal government to finance the deficits of the US for a specific time. These securities are considered the safest in the market. It has no credit risk, meaning you will get your money on time. The interest rate is lower compared to other riskier debt securities such as corporate

Show More
Related
1698 Words | 7 Pages

In Founding Finance, William Hogeland does a complete historic analysis on how America’s rose to be the centerpiece country it is today. Hogeland makes the

Read More
424 Words | 2 Pages

4. DATA SOURCES AND DESCRIPTIVE STATISTIC 4.1 Data Sources This paper uses the annual data from 14 countries in Asia which have already established capital market in their countries in 8 year period times between 2005 and 2012. The countries are Indonesia, Malaysia, Singapore, Vietnam, Thailand, Philippines, China, South Korea, Taipei, Mongolia Bangladesh, Bhutan, India, and Sri Lanka. All data is cover countries at East Asia, South East Asia, and South Asia which is taken from Asian Development Bank publication: Key Indicators for Asia and the Pacific 2013.

Read More
734 Words | 3 Pages

The Great Depression affected the economy in the United States and throughout the world

Read More
841 Words | 4 Pages

WWII instead, ended the Great Depression. The stock market was one of the last events to happen before the Great Depression and it was a contributing factor to the Depression. The other factors include Coolidge not giving federal relief to farmers, wealth not being equally distributed, having a large supply, but no demand, and debt from buying on margin. These other factors compiled into the stock market crash.

Read More
883 Words | 4 Pages

The Wall Street stock market crash shook the nation in 1929. The crash brought America great struggles and it will forever be marked in history as one of the worst economic crises of all time. When Franklin D. Roosevelt was elected president in 1933, the first thing he did was close all of the national banks so that they could be inspected before they reopened. Franklin D. Roosevelt also came up with the New Deal policy, which was supposed to relieve the sufferings of Americans and restore the stock market. Although many question whether it actually helped the United States or if it actually made the situation worse.

Read More
819 Words | 4 Pages

After the World War I, the United States experienced a deepest and longest-lasting economic downturn the history. Poverty and financial crises are problems that the country was facing after the war due to the stock market crash on October 1929, wiped out millions of investors and big corporations. Many people were unemployment and banks were failing create a big mess in the country. To resolve the problem, government stepped up and introduced a New Deal to stabilize the economy and provide jobs. President Roosevelt’s New Deal permanently changed the federal government, created more programs to help United States back where we were before the Great Depression.

Read More
1949 Words | 8 Pages

World War II helped to end the United State’s economic problems. Fundamentally, preparing for the war helped to end the U.S.’s financial troubles. In 2008, the United States almost experienced financial ruin again, as the economy was failing once again. Had it not been for the programs that lasted, the U.S. could have went into another depression. The government played a vital role in the economy, which helped to end the Depression.

Read More
746 Words | 3 Pages

Although World War I was partially responsible for America’s economic recession, however, World War I was ultimately a minor factor in comparison to America’s unstable economy, facing problems such as overproduction, the banking credit structure, and an un-diverse industrial emphasis ultimately were the leading causes of the

Read More
1681 Words | 7 Pages

The capital business sector is the business sector for securities, where organizations and the legislature can raise long haul stores. The capital business sector incorporates the stock exchange what 's more, the security market. Money related controllers, for example, the U.S. Securities and Exchange Commission, direct the capital markets in their individual nations to guarantee that financial specialists are ensured against extortion. The capital markets comprise of the essential business sector, where new issues are appropriate to financial specialists, and the optional business sector, where existing securities are exchanged. (n.d.).

Read More
1310 Words | 6 Pages

After the end of the World War I, United States’ booming economy took a drastic turn, which led United States to the worst economic depression in history. During the 1920s, the United States had a good, solid economy, and a strong stock market. The consumer economy of United States was strong because of new products, higher wages, lower prices, advertisements, and credit. The President of United States from 1923 to 1929, Calvin Coolidge, believed in Laissez faire, which was a belief that the government should leave the economy alone. The most valuable economy of United States took a downfall on October 29, 1929, when the stock market crashed; it is also known as Black Tuesday.

Read More
772 Words | 4 Pages

economy in many ways. The United States, at the time, was going through the Great Depression. The stock market crash had a big impact on the economy. Banks didn’t have enough money to give people so they closed. Americans had lost faith in their banks and their government.

Read More
1833 Words | 8 Pages

In year 1913, The GDP and the gross industrial output value all became the first in the world and made the US became the world’s first economic power. At the same time, this era also gave birth the first batch of the large monopoly enterprises with international influence such as JP Morgan Chase, Citibank, General Electric, Exxon Mobil, United States Steel Corporation, American Telephone and Telegraph Company, Ford Motor Company etc. These companies still are mainstay and symbol of the US economy. With economic development, the US transformation of the economic power into political influence

Read More
1034 Words | 5 Pages

After the end of World War 1, many companies had gained wealth from having a mass increase in the work that had to be done in their company. Also from the amount of debt they were owed from other countries. This help to create a great improvement in wealth. As well as many companies started investing their money into the stock market. Where they helped provide money for smaller companies or business, but they could also collect money off of it too.

Read More
585 Words | 3 Pages

So when the market high, everyone pulls out to make money and pay off loans, it sends the market

Read More
1323 Words | 6 Pages

is known as Corporation. Apple Inc. is one of the leading organizations in technology all over the world, the company had to convert its form of business organization to the corporate form so as to enable them raise the capital needed for expansion and development of new products. A corporation is legal and separate from the owner; they operate on set bylaws and procedures which regulates their operations and decision making process. These bylaws guide the stakeholders in electing the board of directors who then pick the managers. The managers are expected to run the organization with the interests of the stakeholders at heart.

Read More

More about What Is The Biggest Capital Market In The United States

Related Topics

Open Document