Capital Markets

Buying and selling long-term debt and equity-backed security is a popular form of investing. While at first glance, this can be considered a ‘boring’ form of investing, it is surprisingly complex and offers the savvy investor a lot of great opportunities. Capital markets are a long-term investment area since they typically require money to be tied up for a minimum of a year. This can help to create real returns on money that would otherwise just sit in savings.

Here at Orchard, we look at capital markets to help our readers understand how they can benefit from them, and what mistakes to avoid.

The capital markets category covers many different topics that fall within the overall umbrella of the capital markets systems. Other topics that will be covered include:

Legal Origins
Understanding where capital markets came from, and how they have evolved over  the years, can help ensure you are able to use them properly.
Theory of Capital Markets
While on the surface capital markets may seem straightforward, they can be used in many ways for many people. The theory used in capital markets is fascinating and should be clearly understood.
Asset Pricing
Determining the proper pricing of an asset is essential for investing in capital markets. There are a number of factors that go into this determination, and we’ll help cover them all.
Fixed Income Capital Raising
Those on fixed incomes often prefer investing in capital markets due to the reduced risk. The reduced risk, however, does not have to mean a loss of growth opportunity. We cover many important strategies involved with building capital while on a fixed income.

Future of Capital Markets

Capital markets will continue to be an important pillar of the overall economic strategy long into the future. They provide investors with unique opportunities for steady growth, without nearly the level of risk that other areas include. While there is little doubt that capital markets will be present, they may look somewhat different. Many people are predicting reduced regulations in these markets over the next several years, which will help to create additional options that investors can take advantage of.

A large number of experts agree that the reduction in regulations won’t significantly add to the economic risk, but will allow for more robust growth. We’ll keep a close eye on the capital markets sector, and keep our readers informed of both opportunities to be aware of, and risks to be avoided.

Last articles on Capital Markets

Anatomy of a Trade
Anytime you trade you want to ask, why is this asset I am buying underpriced and why is the asset I am exchanging for it overpriced? Or vice versa, why is the asset I am selling overpriced, and why is the asset I am getting for it underpriced? The usual answer to a value investor in stocks is the asset is underpriced because it is an ugly stock that is...
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S&P500 and Inefficient Markets
Source: Wikipedia. The S&P 500 represents a collection of firms across many industries which are among the largest in market capitalization. These firms are all generally successful and blue chip and choosing among them is like choosing a desk to work at on Goldman Sachs: they are all good and yet they can be very different depending on your own capability to hold onto these stocks or keep working on...
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Black-Scholes: Risk and Randomness in Options
Reference is Basic Black-Scholes: Option Pricing and Trading by Timothy Falcon Crack. The Black Scholes formula starts with defining a relationship via a partial differential equation between a stock price moving randomly with drift and a derivative price which derives from the stock price. By Ito’s Lemma, we can amount to a relationship between movements in the derivative price and the stock price. If we solve the partial differential equation...
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