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Capital Market allows for the channelization of the saving of innumerable investors into various productive avenues of investments. Accordingly, the current savings for a period are allocated amongst the various users and uses.
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Allocation Function of capital market
Capital Market allows for the channelization of the saving of innumerable investors into various productive
avenues of investments. Accordingly, the current savings for a period are allocated amongst the various users
and uses. The market attracts new investors who are willing to make new funds available to business. It also
allocates and rations funds by a system of incentives and penalties.
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