Scottish Capital Market is a market for buying and selling of Scottish equity and debt instruments. In other words, the Scottish capital market is nothing else but a marketplace for all Scottish financial instruments.
Based on this definition it would be easy just to make an association with the Scottish companies and the wide variety of investment opportunities they offer. Then, it will be straightforward to make a conclusion that all Scottish companies that offer financial instruments for sale are forming the supply chain of the Scottish Capital Market.
I already hear your question: “What do you mean by Scottish companies?”. For the needs of the investment strategies building and implementation, Scottish companies are all these which have a place of business and operate in Scotland.
If we already outlined what the supply on the Scottish Capital Market is we need to go further and to describe what shapes the demand on it.
Following the classical description about the capital markets worldwide we need to define what the demand on the Scottish Capital Market is. While Scottish corporations supply financial instruments on the market, the demand on them is created by all investors willing to buy not only Scottish Stocks.
One of the many possible simple segmentation of the demand on the Scottish Capital Market then would include: local for Scotland investors, investors on the capital market of Great Britain and international investors. They all want to buy and acquire Scottish financial instruments.
As theory states, there should be a marketplace where the aforementioned demand and supply can meet. Many years ago, because of the absence of today’s advanced technologies investors and companies offering financial instruments needed real and physically existing trading floors. They called them Stock Exchanges.
Nowadays, in the global world with highly developed know-how and equipment investors do not need to go to a stock exchange at all. It is the opposite. The marketplace goes to investors’ homes. Thanks to the virtual trading platforms investors have access to their portfolios from their own computers or mobile devices.
Formally, stock exchanges still exist but investors can easily trade Scottish financial instruments without the need to visit or use the services of a Scottish Stock Exchange. Furthermore, Scottish equity and debt instruments can be traded not only on the London Stock Exchange which is accepted as a traditional marketplace for the Scottish securities after the closing of the Scottish Stock Exchange. Some Scottish companies have listed financial instruments which are traded on the recognised as worldwide international markets like NASDAQ, the pan-European Euronext Exchange, American OTC market and others.
In order, not to make my post boring I will just end here with the promise to make a second part on the topic for the Scottish Capital Market. There I will give you more information about the financial instruments and capital markets’ supervision.
In the meantime, you can just visit the Watchlist of Scottishstocks.com and learn more about the Scottish listed on the secondary capital market securities.
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