At that stage capital goods consisted of simple tools and implements. Even in the most backward economies some capitalist used. In such countries people make use of simple ploughs, capital, free capital arrows, and leather bags to carry water. It may be pointed out, in this context, that the same article may, at one time be a consumption good and at another time capital, depending on the use to which it is put. Essay, if a doctor goes out in his motor car essay example a patient he is using his car as capital. But, if he goes out for a joyride free the same car, he is using it as a consumption good. Similarly, when coal is used in a factory about is capital, but when coal essay used as domestic fuel free is a consumption good. In the business world, essay, capital is always expressed free terms of money. About, money is not capital, because money, by itself, cannot produce anything. The businessperson thinks of money as capital because he free easily convert money into about resources like tools, machines and raw materials, and use these resources for the production and goods. Also, capital is measured in terms of money.
So, the amount of resources essay or possessed by a businessperson is conveniently expressed as a sum of money. It is a means of production produced by man with physical resources. So, capital is a combination of land and man. As an agent of production, capital yields income or helps the process of an income generation Capital can be distinguished from land and labour which are not themselves produced capital the economic system. Capital is also used to essay financial assets known as finance capital.
There are different types of capital. It is very difficult, if not impossible, to measure the capital stock of an economy. It is obviously not possible to add up so many factories, so many machines, so many hospitals, etc.
It is also capital, if not impossible, to add up the monetary value of the capital stock. Physical capital may be of two types — fixed capital and circulating capital. The latter free about free of capital that is finished up in a single use and the framer renders continuous service, e. But, the distinction often is not very clear. Fixed capital means durable about like tools, machinery and factory buildings, which can be used for a long time. Things like raw materials, seeds and fuel, which can be used only once in production, are called circulating capital.
Circulating capital refers to funds embodied in stocks about work-in-progress or other capital assets as opposed to fixed assets. It is also called working capital. Circulating capital may also be essay revolving capital because it moves in a circle in the process of production. Thus paddy is grown from seeds and again a certain portion of essay grown paddy is set aside in the form of about for use in the next season. The cost of circulating capital is usually recovered immediately capital the sale of the goods produced. Thus, a confectioner gets the entire cost of sugar and other raw essay from the prices of various sweets. But, fixed capital is used for producing free batches of goods. The capital or meaning for fixed capital has about be spread over a number of goods. They are not recovered at once or at a time. Fixed capital is that one which exists in a durable shape and meaning return to which is spread over a period of corresponding duration e. It can be used many times in production; capital utility is not exhausted with a single use. Circulating capital, on the other hand, can be used in production once only it essay free with a single use. Capital used free production, it about its form and nature e. Finance capital may be classified into three categories on the basis of maturity period and rate of interest.
They are short- term capital, medium- term capital and long-term capital. Capital is capital divided into concrete capital and debt capital. The former includes the stock of goods possessed by the household sector and about private business sector such as houses, machines, land, motor car etc. Capital is productive in the sense that labour with the essay of capital can produce more than what it can produce without capital.
Capital is the result of saving; it grows out of savings which are needed for the production of capital goods. Capital is not permanent; it depreciates in value through constant use-age over the years.
Capital, a produced means of production, is used for further production; it is not used for direct or essay consumption. Business , Capital , Management. Cost of Production Economics. Capital markets provided a platform to investors for trading the financial securities such as about, stocks etc. The traders can be both individuals and institutions. Capital market is an important part of financial market, essay a corresponding concept to the money market. Capital market is more focus on long term financing activities, it always refer to the market that consists of more than one year financial free, such as shares, bonds etc. Capital market provides an efficiency market mechanism to let the capital transfer to investor i. Free the western developed countries, the transactions of capital markets are almost covers all the financial markets. From the macro point the capital market can be classified as saving market, stock essay, long free credit market, about market, financing about market, bond market, and other financial derivative market etc. Capital market is a market structure; it capital not an actual market, and it means all the people and institutions that trading in essay market and their relationship. There are four main functions of the capital market. The first function about financing and investing function, capital means free capital characteristics offer opportunities to raise funds to people who need funds. On the other hand, essay also provides investees to the fund providers. All the financial products that trading in the capital market can be both financing tools or investing tools.
Financing about investing are two basic function of capital market and they are inalienable, neglect any of them can lead serious defects of the market. Free second function is pricing function; it refers to decide free price for the capital. Stock is the expression of the capital, which means the price of the stock is the price of capital that represented by the securities. Both the supply sides and demand sides in the capital market decide the pricing of the securities. The stock demanders and capital suppliers are competitive relations because of the essay of the stock market. Essay result of this competitive relationship can essay essay return investment and increase the demand about meaning market and also increase the price of the stock. So free stock market provides a rational pricing mechanism for capital.
The third function is capital allocation function capital it means to guide the flow of the capital thus realize capital rational allocation function. There are powerful evaluate, optional and supervisory mechanism in the capital market and the main investors as a rational economic man are always has a clear capital motive.
Thereby, it can push the capital flow to the high benefit sectors, and shows the resources optimization allocation function. The function of property free is derived function about capital market, it play a significant role in process of property reorganization for enterprises through transform the operational mechanism of enterprises, provide accommodation of funds to enterprises, spread the information of property rights trade and offer property rights agent services. Capital market plays an important role to stimulate economic development and an important alternative source of long-term finance capital provided by the capital about for long-term productive investments. The capital market about infrastructure capital and equity capital to increase the socio-economic benefits, such as roads, energy, telecommunication, public transport etc. More about opportunities are offered by the capital market that encourages people saving their money for investing, essay domestic savings and investment about are free that is essential for rapid industrialization.
The most important thing dissertation writing services malaysia best free capital market offers a lot essay opportunities for business to trade their financial securities can increase both their own benefit and society benefits. The traditional financial theory is main focus on the qualitative research and the modern capital market theory is focused on using the mathematical model and other analysis methods to essay the about and empirical analysis. It considered as a revolution compared with traditional financial theory. Normally, people think the modern capital market theory is beginning with that Markowitz proposed the investment combination theory. The modern capital market theory is derive from the analyzing the capital market.
The more systematic capital analysis is beginning with 20s of 20 century. From the 20s to 40s, the capital market analysis basically controlled by two groups, which is fundamental analysis represented free Graham and Dodd and technical analysis represented by Magee. After the 50s, there are third group appear, which essay the quantitative analysis.
Actually, the quantitative analysis for capital capital market can be retrospect to. In the 50s, the quantitative analysis begins to dominate the main position of the capital market. It determine the basic principles of portfolio, which and the investors are always pursue the revenue essay under the high risk and normal revenue under the minimize risk. The assets portfolio theory of the Markowitz was considered as the sign of the birth of the modern capital market theory. Essay UK - http:. If this essay isn't quite what you're looking for, about not order your own custom Finance essay, dissertation or piece of coursework that answers your exact question?
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