Capital markets provide funds to
industries and governments to meet their medium and long-term capital requirements,
such as financing of fixed investments like buildings, plants and machinery, it
mobilize long-term capital efficiently by attracting resources from a large
number of savers in a cost-efficient manner and by converting the funds of
short-term investors into long-term capital.A capital market is the financial
market where long term securities are bought and sold.
Saturday, February 23, 2019
THE INTRODUCTION OF LIABILITY COMPANIES
The shareholders of companies hold
liabilities to the company. In simple terms they share the liabilities arising
from the companys’ activities. However, it was assumed without formal provision
that the liability of shareholders in the earliest chartered companies was
limited to the amount of their subscribed contributions, but then in the Ham
borough Company case,[1]
THE EVOLUTION OF COMPANY
The development of the company was also
influenced by the discovery of wider world. The growth of merchant adventurers
and the need to attract resources to finance the adventures into the unknown
world for purposes of discovery and trade also contributed immensely to the
development of companies.[1] In fact as noted by Gower[2] the name ‘company’ was
first applied and adopted by the merchant adventurers.
THE EVOLUTION OF CORPORATE FORM OF INVESTMENT
A corporation is a firm with special
legal attributes that make it capable, among other things, of owning property,
entering into contracts, and standing in court independently of the individuals
behind it, such as owners, managers and employees.[1]
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