capital market is a place where debt (e.g. bank notes, bonds &
debentures ) and equity (shares; common stocks, derivatives (forward,
future, options & swaps) securities are traded. Security is fungible,
negotiable financial instrument which represent financial value), where
business enterprises (companies) and governments can raise long-term
funds. It is divided into: Primary market & Secondary market
Why is it called ‘capital’ market? A CM is place in which money is provided for periods
longer than a year and funds are raised on MONEY market . It includes stock market
(equity securities) and the bond market (debt).
Why do we need them? (i) To oversee the capital markets in their designated
jurisdictions – Turkey? Baraka, IPO structure (ii) to ensure that investors are protected
against fraud, exploitation, miss management & other duties. How would conventional
be different from ICM? The only difference is of Shariah compliancy (halal screening)
How CM and ICM is regulated? ASIC (Australian Security Investment Commission)-Turkish
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