What Is Involved In Capital Market Law
Capital markets are markets where business enterprises and governments are able to raise long term loans. It includes both the stock market and the bond market whereby a government or a company can invoke money by selling bonds or by selling stocks. This is done for the purpose of funding their long-term investments and operations; it is provided for a period that exceeds one year. In general, they are supervised by financial regulators such as UK’s Financial Services Authority (FSA) or U.S Securities and Exchange Commission (SEC). Capital markets are classified into primary and secondary markets; Primary markets are where stocks and bonds are sold to investors through means of underwriting while Secondary markets are where securities are traded among investors, on a securities exchange.
In capital markets, there exists a capital market lawyer(s) whose role is to advise banks and other companies on how to raise their chances of getting funds in the financial markets. Capital market solicitors use the following types of law: Contract, Financial Regulatory, Tax, and European. These solicitors need to be committed, knowledgeable and enthusiastic, and have the ability to correctly apply law during agreements and negotiations. Lawyers are basically needed because the provision of advice on capital market instruments requires the financial planners to be licensed by the Securities Commission. In the U.S, there are organizations that relate to capital markets law such as, BDO-Access to Capital Markets, Center for Capital Markets Competitiveness, Financial Accounting Standards Board and International Capital Market Association.
The 11th edition of the Capital Markets 2015 analysis includes 574 practitioners from 214 law firms across 57 jurisdictions; separated between three areas of capital markets law: debt and equity, Islamic finance and structured finance. Clifford Chance continues to outshine its rivals due to its expertise; Allen & Overy and Linklaters follow closely after. A number of U.S giants also dominate the market, that is, Sidley Austin excels in the structured finance segment; Latham and Watkins is good at international debt and equity market.
There is also acknowledgement that goes to the most highly rated lawyers. Some of these lawyers are Jason Kravitt and Sam Tabar who stand out due to their expert skills and abilities in capital market law. Jason Kravitt is described as “an incredible legal strategist” who has played an outstanding role in many regulatory initiatives. Sam Tabar a well known prominent lawyer and a capital strategist.