Friday, 7 August 2015

Karan Bagga of Altius Finserv talks about Capital Markets

If you can read and write your name in a language, then as per government rules, you are literate. If only financial literacy was so easy to achieve. Many of us Indians are hardly familiar with the concept of literacy, leave alone knowing about financial literacy. That’s why words like ‘Capital markets’ render us speechless. We try so hard to sniff out a literal meaning, but all in vain. So what is this capital market and why does it baffle us so much? Let’s find out.
Capital markets, equities, debts et al, aren’t these quite heavy words? Just the mention of these words makes one go dizzy. It is like an overwhelming chemical imbalance inside your mind. Such heavy finance related words often seem ambiguous. However has a simplified explanation for you.
As per Karan Bagga ,Executive Director, Altius Finserv Pvt. Ltd, Capital Markets are basically markets that entail to selling and buying of equities(stocks) and other debt instruments. They act as a platform bridging the gap between capital suppliers and users. In short, they connect the investors with the users who need capital for their businesses. So in Karan Bagga’s words, capital markets simply facilitate the demand and supply. Capital markets are further bifurcated into 2 categories, primary and secondary. Primary capital market is the one where new stocks and bonds are sold whereas the secondary market deals with the equities and debts that already exist.
The next part ia a little tricky. The capital markets have a large number of participants, like individual investors, pension funds, mutual funds and even governments, PSUs etc. Also, now every investor wants as much profit as possible. So the common trade off is that an investor into your business would expect high returns. And if in case you are an investor, it is important for you to invest your money in an area where a good rewarding return is expected.
Sounds tricky…right? Now this is where Altius Finserv will guide you. Altius Finserv Private Limited is a boutique investment banking firm offering financial advisory services like debt syndication, public offerings, private placements, spin-offs and restructurings. So all those terms that you find baffling are actually the ones we communicate in on daily basis. No wonder that’s why we boast of an elite clientele.

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