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Capital Market Participant Overview

The capital market is a financial market where securities are bought and sold by market players and individual investors.

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Capital Market Participant Overview

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  1. Capital Market Participant Overview The capital market is a financial market where securities are bought and sold by market players and individual investors. The capital market comprises primary and secondary markets. The primary market deals with the initiation, undertaking, and allocation of shares. The secondary market is a large arena where transactions and post-trade processes transpire. The market players or participants play an integral role in the thriving of the capital market economy. Who is a Market Participant? A market participant is a buyer or seller who transacts assets and liabilities in the market. In this blog, let's look at the key market players who contribute to the seamless functioning of the system. 1. Investors Investors engage in the buying and selling of securities in the market. The investment institutions include the buy-side and sell-side firms that offer capital market solutions to their clients. While the sell-side firms involve in selling the securities, the buy-side firms buy such securities for their investor pool. The investment agencies play an integral part in the industry, and they leverage FIX products to hone their service delivery. 2. Broker-Dealers

  2. The broker-dealers are an intermediary body between the buy-side and sell-side firms. They charge a brokerage for their services and must be registered with FINRA or NSE to legalize their services. Broker-dealers can either be individuals or firms. 3. Investment Advisors Investment advisors are high-level market analysts who offer an in-depth insight into the market functions. They offer capital market consultancy services to their clients and produce reports and analytics regarding the securities market. 4. Stock Exchange The Stock Exchange is a brick and motor trading place. Investors, brokers, and dealers converge at the Stock Exchange to buy/sell stocks, bonds, and securities. The organization must be listed in the stock exchange to qualify for trading activities. 5. Transfer Agents Transfer agents play a crucial role in post-trade management. From maintaining a comprehensive registry of the shareholders to engaging in the allotment and payout of dividends, transfer agents are responsible for an array of post-trade activities. 6. Custodian Banks The custodian banks are responsible for managing the portfolios of institutional investors. They monitor client portfolios and render security services for their financial assets.

  3. Populated by financial giants, the capital market is a volatile ecosystem that requires expertise and advanced tools for seamless functioning. The capital market exists because of the contribution of the participants. Sensiple is the best capital market service provider that assists market players to involve and excel in trading activities.

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