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Editorial: Don’t Miss Out On The Capital Markets Week

Editorial: Don’t Miss Out On The Capital Markets Week
July 04
11:27 2018

The capital market is not a physical market like the city or town Municipal Market.

It refers to the buying and selling of medium to long term debt and equity securities as well as units.

And yes, this week is Capital Markets week, at the Fiji National Provident Fund Downtown Boulevard,Suva.

Capital markets provide both new and existing companies access to capital to pay for a company’s growth and provide an opportunity for investors to be part of the company as shareholders.

As companies increase in size, so will their demand for funds. Capital markets can help meet a company’s need for more funds by also providing them with access to capital.

In doing so, the capital markets channel the flow of funds from saving entities (investors) to borrowing entities (companies).

Capital markets provide a system, which enables companies to raise funds directly from investors.

The funds raised are medium to long-term funds that are usually borrowed for more than one year and in most instances are used for capital expenditure of the company.

Benefits of the Capital Markets

A thriving and efficient capital market can be a major contributor to equitable and sustainable economic growth in any country.  Developed and efficient capital markets assists in the creation and expansion of businesses by channelling savings, or surplus funds, from savers to businesses that require funds for development and growth.

This in turn creates employment and increases wealth including job creation through the creation of new businesses and expansion of existing businesses, economic growth and technological innovation.

The capital markets channel investors’ funds to their most productive uses by providing a range of products that:

allow companies in Fiji to obtain the capital they require from savers at home and abroad;

make it easier for savers to achieve their financial goals and accumulate wealth through investing; and

help savers and companies better manage the risks they face.

Investing in the Capital Markets

Members of the public, who wish to participate and invest in the capital markets, must ensure that they deal only with licensed companies and individuals.

The Reserve Bank licenses all participants and intermediaries in the capital markets so members of the public are advised to verify that the person that they are dealing with has been approved by the Reserve Bank before parting with any of their funds.

If you have free time on your hand, it might be a good idea to pay a visit to the Fiji National Provident Fund Downtown Boulevard, Suva.

Feedback: maraia.vula@fijisun.com.fj

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