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SS3 Financial Accounting

Benefits of Capital Market.

Overview

State the benefits of the capital market to (a) investors (b) Government (c) Economy (d) Individual Companies.

What you'll learn
  • Benefits to individual investors
  • (a) Investment
  • (b) Dividend
  • (c) Bonus Shares"
  • (d) Capital appreciation
  • (e) Collateral
  • Benefits to government
  • (a) Raising of capital for development projects
  • (b) provides alternative avenue for deficit financing.
  • (c) Enhances tax revenue.
  • Benefits to the economy
  • (a) Industrial growth
  • (b) Employment generation
  • (c) Improvement in the standard of living.
  • Benefits to individual companies
  • (a) Raising capital for expansion
  • (b) Enhances the popularity of the Company.
  • (c) Enhanced access to credit.
  • (d) perpetuity of the company.