Equity Capital Markets
Equity Capital Markets (ECMs) refer to the platform where companies raise capital by offering equity shares to financial firms, institutional investors, and retail investors. This fundraising process is commonly done through methods like private placements or Initial Public Offerings (IPOs) in the primary market, which is a key part of the ECM. Some of the largest IPOs in India are conducted within the ECM. The secondary market of the ECM is where shares, futures, options, and other financial instruments are traded. A prime example of this secondary market is the stock market, where existing securities are bought and sold.
Related Terms
Annual Earnings Change
An Annual Earnings Change refers to the difference in a company’s earnings between the current...
Bonds
Bonds are fixed-income securities issued by governments or corporations in exchange for a loan. These...
Cash Contract
A cash contract is an agreement between two parties where goods are delivered at a...
Delivery Date
The delivery date of a cash or derivative contract is the final date and time...
Basing
Basing occurs when a security’s price moves sideways after an extended decline, forming a “base”...
Capital Gains
A capital gain is the profit earned when an investor or trader sells assets like...
