The capital markets are key to understanding the way a mature economy grows, and the way
emerging markets
develop and expand. Whether or not you hold international investments, the health of global economies affects the U.S. economy. And the expansion of the means and affordability of raising capital translates into more resources for companies and more investing choices for you.
Of course it’s possible to invest without understanding the capital markets — without wondering why the stock you’re buying is for sale, and who benefits from your purchase. But realizing that raising capital is a goal individuals and businesses share, and that a successful stock issue will provide capital for both parties in the long run, gives you additional perspective into the marketplace and a better knowledge of the impact of your investments.
Professor Samuel L. Hayes,
Harvard Business
School
Professor 