Malaysia has one of the most open economies in the world, facilitating trade and investment activities....

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"Malaysia has one of the most open economies in the world, facilitating trade and investment activities. In tandem with this open economy is a robust capital market that has seen continuous developments in the past 60 years. The nation's stock exchange, Bursa Malaysia Berhad, is at the core of the equity capital market. It is home to more than 900 listed companies and entities and features three different markets catering to a broad range of companies. Bursa Malaysia also features a broad range of products including listed equities, commodity futures, exchange-traded funds, and financial options, among other products. Malaysia's bond market is one of the most active in the Asian market. This can be seen from the active Malaysian Government Securities (sovereign bond) market coupled with a corporate bond market size that represents over 50% of the country's GDP. This active bond market has facilitated efficient financing of various economic activities in the country." (CFA Institute, 2021) i. ii. Critically discuss the role of stocks and bonds in the capital market. (10 marks) Explain the different types of loan capital. (10 marks) "Malaysia has one of the most open economies in the world, facilitating trade and investment activities. In tandem with this open economy is a robust capital market that has seen continuous developments in the past 60 years. The nation's stock exchange, Bursa Malaysia Berhad, is at the core of the equity capital market. It is home to more than 900 listed companies and entities and features three different markets catering to a broad range of companies. Bursa Malaysia also features a broad range of products including listed equities, commodity futures, exchange-traded funds, and financial options, among other products. Malaysia's bond market is one of the most active in the Asian market. This can be seen from the active Malaysian Government Securities (sovereign bond) market coupled with a corporate bond market size that represents over 50% of the country's GDP. This active bond market has facilitated efficient financing of various economic activities in the country." (CFA Institute, 2021) i. ii. Critically discuss the role of stocks and bonds in the capital market. (10 marks) Explain the different types of loan capital. (10 marks)

Answer rating: 100% (QA)

There are several roles that stocks and bonds play in the capital market Including Source of Capital One of the primary roles of stocks and bonds in the capital market is to serve as a source of capit... View the full answer