Capital markets, equities, debts
et al, aren’t these quite heavy words? Just the mention of these words makes
one go dizzy. It is like an overwhelming chemical imbalance inside your mind.
Such heavy finance related words often seem ambiguous. However, Pawan Bansal, Managing
Director, Altius Finserv Pvt. Ltd has a simplified explanation for you.
As per him, Capital Markets are
basically markets that entail to selling and buying of equities (stocks) and
other debt instruments. They act as a platform bridging the gap between capital
suppliers and users. In short, they connect the investors with the users who
need capital for their businesses. So in Pawan Bansal’s words, capital markets
simply facilitate the demand and supply. Capital markets are further bifurcated
into 2 categories, primary and secondary. Primary capital market is the one
where new stocks and bonds are sold whereas the secondary market deals with the
equities and debts that already exist.
The next part is a little tricky. The capital markets have a large
number of participants, like individual investors, pension funds, mutual funds
and even governments, PSUs etc. Also, now every investor wants as much profit
as possible. So the common trade off is that an investor into your business
would expect high returns. And if in case you are an investor, it is important
for you to invest your money in an area where a good rewarding return is expected.
Sounds tricky…right? Now this is where Altius Finserv will guide you. Altius Finserv Private Limited is a boutique investment banking firm
offering financial advisory services like debt syndication, public offerings,
private placements, spin-offs and restructurings. So all those terms that you
find baffling are actually the ones we communicate in on daily basis. No wonder
that’s why we boast of an elite clientele.
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