THE IMPACT OF THE CAPITAL MARKET ON THE COUNTRY'S ECONOMY

The role of the capital market as a source of corporate funding that has implications for the country's economy is not only an alternative but has been able to become the main source of funding. Funds offered in the capital market through several corporate actions such as initial public offerings (IPOs), rights issues or bond issuances each year are considered much more efficient than funding obtained by companies from bank loans. Especially when the inflation trend is increasing which indirectly affects the interest rate of bank loans. The number of companies that have recorded IPOs, rights issues or bonds and the funds raised from the three corporate actions have recorded quite significant results each year. Although when compared there are fluctuations, one of which is influenced by the domestic and foreign economy, each year, this does not dampen the interest of companies to continue to obtain funding in the capital market.Keywords: capital market, stocks, bonds.