Different Avenues of Capital Market (Secondary Market) Available for Investing in Market of Yamuna Nagar

Problems of conflicts of interest in the functioning of the capital marketThe study refers to the occurrence of conflicts of interest on the capital market, which negatively affects the functioning of the capital market, limits its development potential, and may even affect the outflow of investors, particularly those providing liquidity in the market. Today, the social responsibility of business entities becomes something important. It is a specific determinant of the company’s image and the basis of its operation. Word = Institution “brokerage house” should be associated with competence, honesty, or righteousness resulting from observance of the law and ethics principles of conducted business. The existence of a set of regulations the Code of Good Practice for Brokerage Houses, the Act on Counteracting Unfair Market Practices relating to the functioning of brokerage houses, there are situations in business practice that are not used to develop a capital market, based on a conflict of interest. Brokerage firms are obliged, on the one hand, to: sell shares and, on the other hand, recommend buying them. “Manipulation on the market” would mean entering into transactions that give false, misleading signals about supply, demand, and prices of equity instruments. To avoid conflicts of interest, there are special procedures in brokerage offices that prevent co-operation between competing departments: chinese walls.Each office additionally has rules governing the flow and control of confidential information. Such information may not be available, for example, between primary and secondary market forces, between sales departments and analysis departments.The indicated issues were brought together, focusing on the possible consequences of conflicts of interest. It emphasizes the difficulty of bringing justice through the necessity of showing the causal link between the conflict of interest and the possible loss of the investor. Then solutions were identified to protect against the negative aspects of the conflict of interest, and the proposals were presented in their conclusions.

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Growth of Capital Market in Nepal: Impact on Capitalization, GDP and NEPSE Index

Saptagandaki Journal ◽

10.3126/sj.v11i0.36898 ◽

2020 ◽

Vol 11 ◽

pp. 66-83

Author(s):

Dhan Raj Chalise

Keyword(s):

Capital Market ◽

Significant Contribution ◽

Positive Impact ◽

Stock Exchange ◽

Secondary Data ◽

Secondary Market ◽

Financial Resources ◽

Descriptive Research ◽

The Impact ◽

The Capital Market

The capital market plays an importance role in an economy and provides the opportunity to the investor for the mobilization and channelization of funds. Nepalese capital market is in growing and improving phase. The objective of this study is to analyze the evaluation of the existing status of the capital market in term of its composition of types of the capital market and to examine the impact of capital mobilization in Gross Domestic Product (GDP) and to examine the contribution of capital market in financial resources and GDP. Besides, the study examines the share transaction in Nepal Stock Exchange (NEPSE) and its impact on NEPSE Index. The study period of 2000/01 to 2018/19 has been used for study purposes. Through the use of descriptive research design, the trends of capital market development track after 2000/01 to present status has been presented. Secondary data are analyzed through the use of regression and other descriptive statists to convert the information into data. The result indicates that the ordinary shares in the primary capital market and market capitalization in the secondary market has significant contribution for the capital market in Nepal. Also, the study reveals that there is a significant and positive impact of capital mobilization on GDP and the number of share transactions on the NEPSE Index in the Nepalese capital market. Hence there is a significant contribution of the capital market for financial resources mobilization and GDP of Nepal. The study reports for modernization and systematization of the capital market need more optimal efforts from concerned stakeholders.

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Money in Islam: Toward Re-evaluation of Islamic Financial System

FALAH Jurnal Ekonomi Syariah ◽

10.22219/jes.v2i1.4356 ◽

2017 ◽

Vol 2 (1) ◽

pp. 1

Author(s):

Khoriul Umam

Keyword(s):

Money Demand ◽

Capital Market ◽

Financial System ◽

Secondary Market ◽

Economic Activities ◽

Holding Period ◽

Goods And Services ◽

True Value ◽

Money Creation ◽

Points Of View

This paper aims at re-evaluating the Islamic financial system based on its authenticity in the perspective of money in Islam. Imam Ghazali identifies two main functions of money: as a just unit of account and an efficient medium of exchange. These two functions are the purpose of money creation. Thus, Islam prohibits any activity diverting money from carrying out its functions. On the basis of this perspective, the current practice of Islamic banking thatcreates dominantly debts from sales and leasebased products and not the profit and loss sharing ones has caused money deviated from its functions. Furthermore, in Islamic capital market, this paper insists that the minimum holding period of Islamic stock market cannot abolish the practice of capital gain in the secondary market of Islamic capital market. Accordingly, Keynesian liquidity preference must exist as well as the speculative motive of money demand. As the result, money will be demanded not only for real economic activities, so the supply of money will overshoot the demand of real economic activities. Such condition distorts the ability of money to provide a true value for real economic activities. On the basis of these points of view, innovations in Islamic financial system should be designed to facilitate money providing a just value of economic activities and facilitating exchange of goods and services in efficient and equitable manner. Finally, this paper sees the need of Ulama who can control the innovation in Islamic financial system to be based on its authenticity that finally leads to the achievement of Islamic vision. In this regard, faculty should design its curriculum that provide graduates who are able to remove the western vision from Islamic finance theories and then to infuse the Islamic vision to them.

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Growth and Performance of Securities Market in Nepal

Journal of Nepalese Business Studies ◽

10.3126/jnbs.v1i1.43 ◽

2006 ◽

Vol 1 (1) ◽

pp. 85-92 ◽

Cited By ~ 1

Author(s):

Jas Bahadur Gurung

Keyword(s):

Stock Market ◽

Capital Market ◽

Stock Exchange ◽

Secondary Market ◽

Securities Market ◽

Growth Trend ◽

Market Capitalization ◽

Business Studies ◽

And Performance

Securities Board, Nepal, an apex regulator and facilitator of capital market, and Nepal Stock Exchange Ltd., only a single stock market, are the main constituents of securities market in Nepal. This paper attempts to study the growth trend and analyze the performance of Nepalese securities market. Likewise, the variables such as number of listed and traded companies and their securities, number of transactions, trading turnovers, paid up value, market capitalization and NEPSE index are analyzed for the secondary market. Journal of Nepalese Business Studies Vol.1(1) 2004 pp.85-92

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Completing a Financial Revolution: The Finance of the Dutch East India Trade and the Rise of the Amsterdam Capital Market, 1595–1612

The Journal of Economic History ◽

10.1017/s002205070400292x ◽

2004 ◽

Vol 64 (3) ◽

pp. 641-672 ◽

Cited By ~ 64

Author(s):

OSCAR GELDERBLOM ◽

JOOST JONKER

Keyword(s):

Public Finance ◽

Capital Market ◽

Public Debt ◽

Secondary Market ◽

Dutch Republic ◽

Secondary Markets ◽

Private Finance ◽

New Public ◽

Wide Range ◽

Overseas Expansion

The article analyzes the evolution of the Amsterdam capital market as a consequence of Dutch overseas expansion and the introduction of transferable VOC shares. Offering investors prospects of speculative gains without serious loss of liquidity, these instruments created a booming secondary market offering a wide range of allied credit techniques. By 1609 this market had become sufficiently strong to dictate terms for new public debt issues. These findings show that, contrary to commonly held notions about the emergence of secondary markets, private finance took precedence over public finance in the Dutch Republic.

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Capital Market Linkage to Economic Growth in Nepal

Westcliff International Journal of Applied Research ◽

10.47670/wuwijar202041jp ◽

2020 ◽

Vol 4 (1) ◽

pp. 43-56

Author(s):

Jhabindra Pokharel

Keyword(s):

Economic Growth ◽

Capital Market ◽

Time Series Data ◽

Secondary Market ◽

Market Development ◽

Series Data ◽

Individual Investors ◽

Fair Price ◽

Market Capitalization ◽

The Capital Market

This article examines the causal relationship between capital market development and economic growth in Nepal using annual time series data from 1994-2019. Total market capitalization is used as a proxy of secondary market development and the total public issue of securities in a particular year is taken as an indicator of primary market development. Using the Johansen cointegration test and vector error correction method (VECM) in regression analysis, the study reveals that capital markets in Nepal are supporting economic growth through efficient fundraising, efficient allocation of resources, fair price determination and liquidity. The findings from this study conclude that there is a unidirectional causality running from capital market development to economic growth in both the long-run and short-run. However, this study found no support for causality running from economic growth to the capital market. Therefore, the findings from this study recommend policies that increase the reach of the capital market to small and medium enterprises (SMEs) and individual investors. Keywords: capital market, market capitalization, primary market, economic growth, Nepal

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Capital Market and Economic Growth in Transition Countries: Evidence from South East Europe

Journal of International Business Research and Marketing ◽

10.18775/jibrm.1849-8558.2015.26.3002 ◽

2017 ◽

Vol 2 (6) ◽

pp. 15-22 ◽

Cited By ~ 2

Author(s):

Faris Njemcevic

Keyword(s):

Economic Growth ◽

Capital Market ◽

Empirical Studies ◽

Transition Countries ◽

Secondary Market ◽

Reverse Causality ◽

East Europe ◽

Dummy Variable ◽

South East Europe ◽

Reverse Relationship

Influence of capital market on economic growth has been proven to be positive by majority empirical studies up to now. Throughout these studies, only secondary capital market indicators were usedwas extended with eight countries from Central and Eastern Europe to stabilize the model. A country dummy variable was used to distinguish between two regions. Data for panel regression was taken from GFDR, WDI (both from World Bank database) and one variable from UNECE. Results show that only market capitalization indicator is found to be significant, which is contrary to preliminary expectations. It was hard to expect secondary market activities to spur growth in transition countries, where primary issues almost do not exist. However, this result could be explained LSDVC regression tested endogeneity and reverse causality, and no significant reverse relationship was detected. The main conclusion of this study is that more qualitative research has to be done to discover the main limitations to capital market development in transition countries with more emphasis on primary issues, what could be of better use for policymakers.

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The Jordanian capital market: Liquidity cost during COVID19 pandemic infection

Accounting ◽

10.5267/j.ac.2021.3.006 ◽

2021 ◽

pp. 1025-1032

Author(s):

Hadeel Yaseen ◽

Ghassan Omet

Keyword(s):

Financial Market ◽

Capital Market ◽

Stock Prices ◽

Global Market ◽

Secondary Market ◽

Market Liquidity ◽

Trading Activity ◽

Listed Firms ◽

Liquidity Cost ◽

Policy Measures

The COVID-19 outbreak has affected the entire global financial market in an unprecedented way. Due to disruptions in the global market, the Jordanian financial market also responded to the pandemic and observed sudden volatility. The outbreak of the virus has led the management of the Jordanian market (Amman Securities Exchange / ASE) to halt trading on the secondary market during the period 17 March 2020 – 9 May 2020. Hence, using daily closing prices of listed firms, this paper empirically examines the market’s liquidity cost before its closure (2 January 2020 – 16 March 2020) and after (10 May 2020 – 31 December 2020). The premise of this objective rests on the fact that the trading activity on the secondary market, following the resumption of trading is carried- out within uncertain circumstances. The data used in this study comes from the daily trading reports published by ASE. All listed companies are included in the analysis. Based on the daily closing bid and ask prices, we calculate the daily spreads during two sub-periods (2 January 2020 – 16 March 2020 and 10 May 2020 - 31 December 2020). We then regress the daily spreads on daily stock prices, number of daily contracts, risk, and where the companies list their shares (first or second market). The main findings of this paper are threefold. First, liquidity cost in the ASE is relatively high. Second, following the resumption of trading on the secondary market, liquidity cost has increased. Third, other known determinants of liquidity cost are significant and have the expected coefficient signs. The fact that liquidity cost in the ASE is high, and higher even after the resumption of trading, necessitates some clear policy measures. These include a reduction in the currently used minimum tick.

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The secondary market for bank shares in nineteenth-century Britain

Financial History Review ◽

10.1017/s0968565008000139 ◽

2008 ◽

Vol 15 (2) ◽

pp. 123-151 ◽

Cited By ~ 12

Author(s):

Graeme G. Acheson ◽

John D. Turner

Keyword(s):

Nineteenth Century ◽

Capital Markets ◽

Ownership Structure ◽

Capital Market ◽

Rapid Growth ◽

Secondary Market ◽

Major Determinant ◽

Trading Activity ◽

Company Stock

AbstractStock transferability and liquidity are viewed as vital characteristics of capital markets. Surprisingly, we know very little about the level of trading activity on, and liquidity of the market for, company stock during the rapid growth of the British capital market in the nineteenth century. This article attempts to shed some light on this important issue by examining the market for bank shares using trading data collected from bank archives. Our evidence suggests that trading activity and liquidity changed imperceptibly over the century. We also find that ownership structure is a major determinant of trading activity and liquidity; whereas shareholder liability regimes don't appear to affect liquidity.

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Underpricing of Initial Public Offerings in Indian Capital Market

Vikalpa The Journal for Decision Makers ◽

10.1177/0256090920120107 ◽

2012 ◽

Vol 37 (1) ◽

pp. 83-96 ◽

Cited By ~ 5

Author(s):

Neeta Jain ◽

C Padmavathi

Keyword(s):

Initial Public Offerings ◽

Capital Market ◽

High Growth ◽

Secondary Market ◽

Growth Opportunities ◽

Public Offerings ◽

True Value ◽

Book Building ◽

Market Feedback ◽

The One

This paper is an attempt to empirically explore the determinants of underpricing of Initial Public Offerings (IPOs) in the Indian Capital Market. IPOs are one of the largest sources of capital for the firms to invest in the growth opportunities. It encourages investment activities in the economy by mobilizing funds from low growth opportunities to high growth opportunities. It has been observed that IPOs are underpriced in most of the countries (Loughran, Ritter and Rydqvist 1994). Underpricing is the pricing of the issue at lesser price than the true value of the issue. The degree of underpricing varies from country to country and issue to issue in the same country. The underpriced IPO leaves money on the table which is a cost (loss of capital) for the company and the same becomes a gain for the investors in the form of positive initial returns on the underpriced shares. Though underpricing is a cost for the issuing company, the issuing company underprices the issue. There are many theoretical explanations for underpricing of IPOs. This is an empirical study which aims to find out the factors which are causing underpricing in India. The underpricing of IPOs is a serious problem for any economy. On the one hand, high underpricing tendency in the primary market discourages IPOs issued by those companies which cannot afford or do not want underpricing (leaving money on the table). On the other hand, it creates arbitrage activities in the secondary market and in the grey market. The underpricing of IPOs thus hampers the growth opportunities and creates instability in the secondary market. In India, introduction of book building mechanism of IPOs in 1998 aimed to reduce underpricing because in the book building mechanism, offer price of the issue is determined on the basis of market feedback. The present study on 227 book-built IPOs for the period of 2004 to 2009 found that the average underpricing during this period was 28 per cent while the maximum underpricing was around 242 per cent. Thus underpricing of IPOs is still an issue of concern.

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