The Network Structure of Capital Market and its Intrinsic Deviations

Capitalisation is one of the key economic and social phenomena. It enables economic and social progress. Capital can only arise from goods in certain social conditions which are legally regulated through the institutes of ownership and private property and where it interacts with labour creating a new value. Capital flow requires a special socio-economic entity shaped into the capital market. With capitalisation and capital flows the network structure of the capital markets is established following the network structure of the society and the wider market. Its members are gathered around a specific hub - a stock exchange or a multilateral trading facility. The very nature of the network structure and the flow of information through it have some inherent defects which require the special regulation of capital markets.