Q.Write a short note on: Capital Market.

The capital market is the market for long-term funds (over one year), dealing in shares, debentures and bonds, and is made up of the primary market (new issues) and the secondary market (stock exchange).

Capital Market

The capital market is that part of the financial market which deals in long-term funds — finance required for a period of more than one year. It links the suppliers of long-term savings (households, institutions) with the users of long-term funds (companies and the government) by trading in long-term securities such as equity shares, preference shares, debentures and bonds. The capital market is broadly divided into:

• Primary market (new issue market) – where fresh securities are issued to the public for the first time, and
• Secondary market (stock exchange) – where existing securities are bought and sold among investors. …