Capital Markets
Course 2
II. Capital Markets - Characterization
Open
 Medium and long term
 Securities can be negotiated and transferred
 No direct trading
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II. Primary and Secondary Market
Capital Market Structure
Regarding the production and sale of securities.
- Primary market: companies are financed directly by
issuing shares and bonds. Issuers obtain financial
resources.
- Secondary market: the traded shares and bonds are
already issued. Issuers do not have income and are not
directly involved.
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II. Romanian Capital Market Development
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Low for Stock Exchanges, trade intermediary and
commodities trade intermediary
December 1882: Stock Exchange
November 1883: first crash
1885: one intermediar
1904: New Stock Exchange Law
14th July 1914: the Stock Exchange is closed
1928 – 1933: difficult period
June 1948: State property
1st April 1995: New Stock Exchange
II. Romanian Capital Market Development
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First steps:
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Law 31/1990
Law 58/1991
1992: National Agency for Securities (Agenţia Naţională pentru
Titluri de Valoare) and Center for Development and Implementation
of the Capital Markets (Centrul de Proiectare şi Implementare a
Pieţelor de Capital)
1993: ANTV  AVM (Agenţia Valorilor Mobiliare)
1994: CNVM (Comisia Naţionala a Valorilor Mobiliare)
1995: BVB (Bucharest Stock Exchange)
1996: RASDAQ: support for the mass privatization
2002: law is changing
2005: RASDAQ  merged with BVB
2013: ASF (Authority for Financial Supervision)
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II. Romanian Capital Market Development
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Components:
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BVB – Bucharest Stock Exchange
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RASDAQ
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SIBEX
BET Index
Source BVB
II. Securities
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In accordance with the EU Directives:
Securities
Units in collective investment undertakings
Money market instruments
Futures, forwards, swaps, options
Derivatives on commodities
Any other instrument admitted to trading on a regulated
market in a Member State of the EU
II. Securities
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Securities:
Equities tradable on the capital market
Bonds and other liabilities tradable on the capital market
Other financial assets giving the right to acquire
securities by subscription or exchange, generating a
cash settlement, excluding instruments of payment
 Securities: financial assets not belonging to the banking
sector
II. Securities
!Recap!
Assets: - real
- financial: - belong to the banking sector
- not belong to the banking sector :
- money market
- capital market
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II. Securities
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Securities characterized by:
Tradable
They may be issued in materialized or dematerialized form
Generates property and non-property rights
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Derivatives:
Term Contracts
Options
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Synthetic financial instruments
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Bibliography
Anghelache, G., Piaţa de capital în context european,
Editura Economică, Bucureşti, 2004
Bodie, Z., A. Kane, and A. J. Marcus, Essentials of Investments, 6th
edition, McGraw Hill International Edition, 2007
www.bvb.ro