Stock Market Efficiency Dissertation Example | Topics and Well Written Essays - 8250 words

Stock Market Efficiency - Dissertation Example country, while in contract, others believe that financial system are the key respondents to the demands created by the economic development of the country (Boyes &  Melvin, pp. 339-345, 2010). In parallel with the trade of goods, the trade in capital in fact has experienced a net gain, although different groups may have results that are poles apart with each other. The country and its trading environment play a substantial role in defining whether the capital market is gaining or decreasing. In addition, it has come under observation that the possibility of having unexpected economic reversal increases for the nations following the liberalized capital flows in comparison to the free good market (Boyes &  Melvin, pp. 339-345, 2010). Capital market has come under consideration to be one of the prime aspects of every financial market.  In a broad spectrum, the capital market is a marketplace for financial assets having a maturity of long-term or indefinite. This is very much contr asting  to the money market mechanism,  as the capital market mechanism becomes mature that goes above the interlude of one year. In precise proclamation, a capital market is a market where both business ventures and governments lift up the finances and resources of long-terms and provide money for more than a period of one year. In other words, capital market is a place for governments and companies to hoist money or capital in order to support their operations and continuing or enduring investments (Choudhry, pp. 3-9, 2002). The stock market also known as securities of equity and the bond market, another name for debt securities are the two primary variables of the capital market. This is because selling of bonds and stocks are the pivotal ways that can come under exercise to generate money.... The intention of this study is the capital market that provides a conducive and convenient venue for the investors that can be either organizations or individual entities to buy and sell shares and bonds in the form of stock exchange on a local and worldwide basis. Due to the advancement in technologies, the world has become a place where human being can travel and reach any destination within no time. Therefore, this has also provided an opportunity for the overseas institutions to participate in the trading activities of the stock exchange based in the vicinity. However, with reference to the capital markets from all over the world, few stock exchanges have captured the marketplace internationally as well as locally and UK stock market is one of them. Numerous sources of information have presented the fact that UK Stock Exchange is amongst the leading stock exchange in the world and has come under consideration to be the largest amongst the European countries. Furthermore, accordin g to the capital markets analysis â€Å"The London Stock Exchange Group is Europe’s leading exchange group in cash equities, fixed income and post trade services†. Essentially, it also divulges the verity that UK stock exchange has proved to be an influential and dominant exchange market where companies from all around the world desire to raise their capital for growth. Furthermore, it has also come under contemplation to be the world’s cordial, earnest and most-liquid pools of low cost capital. The capital market of UK provides effective systems that offer the investors to have trading at low cost with prompt and efficient trading.