Capital Markets - why do they exist?

Introduction 

Stock markets were traditionally a venue for companies to raise money to finance growth. But the number of listed companies has collapsed in many parts of the western world, suggesting that markets perform this function less and less. Easier access to alternative sources of financing alongside the increased cost and hassle of a public listing are all partly to blame. Savers and policymakers should all be concerned about the implications.All is not lost, however. Equity markets are thriving in some parts of the world and even where they appear not to be, they continue to serve an economic purpose, albeit one that is different to the original blueprints.