Australian capital market Assignment Example | Topics and Well Written Essays - 2500 words

Australian capital market - Assignment ExampleThis paper will discuss the Australian Capital Market and will also center on the impact of the global financial crisis on the demesne.The capital markets have been faced with challenges especially during this period of global financial crisis. The global financial crisis has negatively affected the Australian capital markets and therefore there has been a pressing need for a serious counter action to raise the country to its common state according to RICS Research (2007). In the last three months, positive change has been recorded in Australias money market. More initial universal offers by private companies have been noted and indications build that this trend will most likely continue. This has increased the share market performance of the various industries. Indications show that banks are reluctant to provide financing in terms of debt financing.Companies have adapted merger and acquisitions to survive through the recession like Tolhurst Noall which merged with Patersons securities (RICS Research, 2007). This has prevented them from dropping out of the industry. Companies are diverting attention to the ecommerce/digital media companies thats taking a significant market share from newspapers and magazines. The country has seen a lot of vacillation in debt financing since financial institutions have preferred to fund businesses through equity as opposed to debt. Companies that seek to increase their capital, one viable cream has always been to give up a generous portion of their shareholdings.While IPOs were a common way of cashing out investments in the last couple of years, this is no longer the case as many investors have not been able to venture into new businesses due to restrictions on IPOs according to ResearchWhitePaper (2010). The country has however continued to enjoy a lot in terms of issues. In 2007 for example, Ivanhoe Australia