Capital Markets
Certification Course in Capital Markets
Capital markets are venues where savings and investments channel between suppliers who have capital and those in need of capital. For instance, entities that possess capital include retail and institutional investors, whereas businesses, governments, and individuals seek capital.
Moreover, capital markets aim to improve transactional efficiencies. They connect those who hold capital with those seeking it and provide a place where entities can exchange securities.
Functions of Capital Markets
Some key functions of capital markets include:
- Linking investors and savers
- Facilitating the movement of capital for more profitable and productive use, boosting national income
- Supporting economic growth
- Mobilizing savings to finance long-term investments
- Facilitating trading of securities
- Minimizing transaction and information costs
- Encouraging a wide range of ownership of productive assets
- Providing quick valuations of financial instruments
- Offering insurance against market or price threats through derivative trading
- Facilitating transaction settlement
- Improving the effectiveness of capital allocation
- Ensuring continuous availability of funds
The Capital markets serves as the best source of finance for companies, offering a spectrum of investment avenues that encourage capital creation.
Types of Capital Markets
Capital Markets consist of primary and secondary markets. For example, the most common types are the stock market and the bond market.
The primary market is a new issue market that deals solely with new securities. In essence, it is where trading occurs for the first time, focusing on capital formation for governments, institutions, and companies. This process is also known as an Initial Public Offering (IPO).
Origination involves examining, evaluating, and processing new project proposals in the primary market. It begins even before an issue is presented in the market, often with the help of commercial bankers.
Underwriting firms ensure the success of new issues by guaranteeing minimum subscriptions. Consequently, if an issue remains unsold, underwriters must buy it; however, if the issues are fully subscribed, they have no liability.
Brokers and dealers are responsible for distributing shares to ensure the success of an issue by directly contacting investors.
The secondary market is where trading occurs for existing securities, commonly known as the stock exchange or stock market. Here, investors buy and sell securities. Key functions of the secondary market include:
- Providing regular information about security values
- Offering liquidity to investors for their assets
- Enabling continuous and active trading
- Ensuring a marketplace for transactions
Who is a Securities Analyst?
A securities analyst is a financial professional who studies various industries and companies, provides research and valuation reports, and makes buy, sell, or hold recommendations. For instance, they follow the performance of one or more stocks, sectors, industries, or economies in the market.
Security Analysts typically work for research companies, investment banks, or private equity firms. Additionally, they engage in areas such as mergers and acquisitions and bankruptcy.
Skills Required for Securities Analysts
Security Analysts should be proficient with spreadsheets and numbers while effectively explaining their analysis results to clients, management, and industry peers. Therefore, we recommend that anyone looking to enter this role take up this course to gain a solid understanding of the field.
Common Areas Covered in the Course
- Sales & Trading
- Asset Management
- Wealth Management
- Treasury
- Risk Management
- Commercial Banking
Capital Markets Course Duration
The course offers lifetime validity and complete flexibility for learners to study at their own pace. Nevertheless, most people complete it within six months.
Capital Markets Course Certification
This course is provided by the Corporate Finance Institute (CFI) in Canada and is recognized internationally across organizations. As a result, it equips students with essential skills and knowledge applicable in corporate financial modeling and valuation.
Capital Markets Course Fees
Students can enroll in this course for USD 250. To learn more, click on our course information mentioned on the side panel to register immediately.