IDENTIFICATION

Question 1

are FINANCIAL MARKETS where individuals, companies, and governments COME TOGETHER TO BUY AND SELL financial securities, such as stocks, bonds, derivatives, and commodities

Answer 1

Capital markets

Question 2

PLAY A CRUCIAL ROLE IN ALLOCATING CAPITAL EFFICIENTLY by matching investors who have excess funds with borrowers who need capital for investments or expansion.

Answer 2

Facilitate Efficient Allocation of Capital

Question 3

serve as a SOURCE OF LONG-TERM FINANCING FOR COMPANIES. By issuing stocks or bonds, companies can raise funds for various purposes, such as research and development, acquisitions, infrastructure development, and working capital.

Answer 3

Provide a Platform for Companies to Raise Capital

Question 4

ENABLE INDIVIDUALS TO INVEST THEIR SAVINGS in various financial instruments, such as stocks and bonds, and participate in the potential returns generated by companies or projects.

Answer 4

Enable Investment Opportunities for Individuals

Question 5

PROVIDE LIQUIDITY TO FINANCIAL SECURITIES, allowing investors to buy and sell securities easily.

Answer 5

Enhance Liquidity:

Question 6

SERVE AS A MECHANISM TO DETERMINE THE FAIR VALUE of financial securities through price discovery.

Answer 6

Price Discovery and Risk Management

Question 7

PROVIDE VARIOUS DERIVATIVE INSTRUMENTS, such as options and futures, to facilitate risk transfer and hedging.

Answer 7

Enable Risk Transfer and Hedging

Question 8

PLAY A VITAL ROLE IN STIMULATING ECONOMIC GROWTH AND DEVELOPMENT. By providing an avenue for companies to raise capital, they can invest in new technologies, expand operations, create employment opportunities

Answer 8

Foster Economic Growth and Development

Question 9

ONE OF THE PRIMARY PURPOSES OF CAPITAL MARKETS is to facilitate the process of capital formation.

Answer 9

Facilitating Capital Formation

Question 10

PROVIDING INVESTMENT OPPORTUNITIES for individuals and institutional investors.

Answer 10

Providing Investment Opportunities

Question 11

SECONDARY MARKETS within the capital markets system ENHANCE THE LIQUIDITY of financial assets.

Answer 11

Enhancing Liquidity:

Question 12

Capital markets PLAY A CRUCIAL ROLE IN PRICE DISCOVERY as the prices of securities are determined by supply and demand dynamics in these markets.

Answer 12

Price Discovery

Question 13

Capital markets offer various financial instruments that allow businesses and investors TO MANAGE FINANCIAL RISKS.

Answer 13

Risk Management:

Question 14

By CONNECTING SAVERS AND INVESTORS , capital markets contribute to ECONOMIC GROWTH AND DEVELOPMENT in the Philippines.

Answer 14

Economic Growth and Development

Question 15

Capital markets are a crucial source of financing for GOVERNMENT ENTITIES.

Answer 15

Government Financing

Question 16

CAN CONTRIBUTE TO WEALTH DISTRIBUTION AND INCLUSIVITY by allowing a broader range of individuals to participate in the financial system.

Answer 16

Wealth Distribution and Inclusivity

Question 17

COMPANIES LISTED ON STOCK EXCHANGE are often subject to higher levels of scrutiny and transparency requirements.

Answer 17

Corporate Governance and Accountability

Question 18

Capital markets ENCOURAGE LONG-TERM INVESTMENT by offering instruments like bonds and dividend-paying stocks.

Answer 18

Long-Term Investment

Question 19

EFFICIENT CAPITAL MARKETS ensure that prices reflect all available information.

Answer 19

Market Efficiency

Question 20

Investors CAN DIVERSIFY THEIR PORTFOLIOS across various asset classes and industries through capital markets.

Answer 20

Diversification and Risk Mitigation

Question 21

Investors CAN DIVERSIFY THEIR PORTFOLIOS across various asset classes and industries through capital markets.

Answer 21

Diversification and Risk Mitigation

Question 22

A well-developed capital market system CAN ATTRACT FOREIGN INVESTORS, bringing in additional capital and fostering international financial integration.

Answer 22

Foreign Investment and Global Integration

Question 23

Capital markets also CONTRIBUTE TO FINANCIAL EDUCATION AND AWARENESS as people engage with investments.

Answer 23

Financial Education and Awareness:

Question 24

An EFFECTIVE REGULATORY FRAMEWORK is crucial for the proper functioning of capital markets.

Answer 24

Regulatory Framework

Question 25

Capital markets encourage INNOVATION IN FINANCIAL INSTRUMENTS

Answer 25

Innovation and Product Development

Question 26

Capital markets can provide a BUFFER ECONOMIC DOWNTURNS by allowing companies to raise funds when traditional sources of financing, such as bank loans, may be limited.

Answer 26

Economic Resilience:

Question 27

Capital markets can indirectly CONTRIBUTE TO JOB CREATION by providing businesses with the necessary funds to expand their operations.

Answer 27

Job Creation:

Question 28

Capital markets can indirectly CONTRIBUTE TO JOB CREATION by providing businesses with the necessary funds to expand their operations.

Answer 28

Job Creation:

Question 29

Capital markets are instrumental in FUNDING CRITICAL INFRASTRUCTURE PROJECTS, permitting both governments and private entities to issue bonds or stocks for constructing essential facilities like roads, bridges, airports, and public transportation systems

Answer 29

Infrastructure Development

Question 30

Capital markets are EMPHASIZING ESG FACTORS as investors seek sustainable opportunities, potentially making it easier for ESG-focused companies to attract capital and promote responsible business practices

Answer 30

Environmental, Social, and Governance (ESG) Initiatives

Question 31

ADVANCES IN TECHNOLOGY have transformed the way capital markets operate.

Answer 31

Technological Advancements