Importance of training in capital market

Capital market is the part of a financial system which deals in long-term investments. It is referred as a place where saving investments are done between capital suppliers and those who are in need of capital. Therefore, it is a place where various entities trade different financial instruments. There are two types
of capital market which are mainly Primary Market and Secondary Market. The primary market is where new shares or securities are created and the secondary market deals with trading of these shares or securities by the investors. In real sense there is not much difference between these two markets.

  The most important part of capital market is stock or share market. Volume in the stocks are much high as compared to other markets. Importance of training in

capital market needs a lot of factors to be focused. Most important is functioning of capital markets at different levels, organizing and managing of funds, economic growth, mobilization of savings and infrastructure development of different sectors. There is a need to understand how the capital market today is a reality met in any modern economy. The training should consider how it could be pivotal for futures, since it is It is very difficult today to imagine ourselves the times when there
when there were no banks, stock markets, money markets and public debts. In this era capital markets may vary its training differently in almost all the countries.
Moreover its training need to focus not only on long term investments but also on short and medium term investments, since they are also part of the any modern economy. The risk element factor in capital market cannot be identified easily, therefore training should give a special attention on various types of risk that may occur or change from time to time. Participants involved in the capital market should be trained and prepared on uncertainties prevailing in markets.

  Capital market in continental Europe is one of the best markets across globe.Training in varios aspects of condtions prevailing in Europe market should be given.

The well functioning of the capital market is vital in the economy in order to be able to perform an efficient transfer of money resources from savings. The capital market can significantly influence the quality of the investment decisions.

  In a country like India special attention should be given to those factors,who can compete against capital market.This will require well training on factors 

which are permanent and temporary. Permanent factor is growth with available instruments and temporary factor is government policies which can change any time. Administration of capital market is difficult without proper training. Although training has it’s importance, however risk management is a concern especially in developing countries. It entails risks for both the intermediaries, since each financial transaction is complex. It’s volume, quickness and possibility of equal reception by all participants is probably the one of the best existing factors in the structures of a market economy. The capital circulation vehicle is represented by securities, characterized through negotiability of the price and immediate transferability with very low transaction costs. Generating opportunities and at the
same time risk for almost all categories of participants to the economic activity, being a replica of a national economy to a small scale, but nevertheless especially representative.
Capital market training has it’s importance in a economy, since the role of the capital market is of first rate. The well functioning of the capital market is vital. The capital market can significantly influence the quality of the investment decisions.