1. Pooling of capital so that new business can begin, business can expand production, reduce costs or create new products.
2. Some capital markets exist to spread risk, and this allows business to take place.
3. Capital markets exist to defer consumption through investment and make present consumption through loans. It allows us to play with production and time as variables.
4. In countries with capital markets, the standard of living for citizens is markedly inproved and education, health, general welfare and longevity are all better than in countries where capital markets are not prevalent.
