The global capital market is established to enable individuals, companies, and the government to borrow and invest across national boundaries. There are two types of international capital markets, namely primary and secondary markets. The primary market comprises organizations and governments that seek to raise funds by issuing new securities by underwriting. Secondary market . also referred to as aftermarket, denotes purchasing and selling od previously issues securities.
Participants of the primary market include trading companies, investors, merchant bankers, bankers to issue, portfolio managers, share transfer agents, debenture trustees, registrars to an issue, and underwriters. The secondary market comprises stockbrokers and sub-brokers and the intermediary participants.
The current global economic outlook indicates that the effects of Covi-19 pandemic strain the global capital market. The pandemic shut down the international economy, led to a potential recession, and collapsed the global equity market. however, the market is in its early recovery phase flowing the Covid-19 recession. As such, players have to contend to low-interest growth that favors equity over bonds, and they have to deal with an extended period of low inflation. It is an emerging economic cycle that has causes some asset classes to appear decidedly late-cycle regarding valuation terms (Pease, 2020). The compelling situation requires immediate coordinations of central banks, government, and regulators to intervene at the national and international levels. Capital market firms worldwide are taking steps to minimize the pandemic’s impact, such as testing business continuity and splitting work sites.
Regulators seek to enhance investor confidence by imposing appropriate regulations by agreeing with international players on the sense of facialtatitng corss-border cpaita formation that reserve their intrest. Rgualtor enahces investors condifence by requiring issuer disclosureand accoutin, and adhrnce to audit stanrds. This way, investors will make informed decision to invest in particular risk upon assesinthier volaitly or potiel returns.