What is Capital Market ? (Meaning, Features, Functions and Structure)

What is Capital Market ? 

(Meaning, Features, Functions and Structure)

What is Capital Market ? 

Meaning of Capital Market :-

Capital Market is a financial system where long term debt and equity securities are bought and sold. It consists of series of channels through which the savings of the community are made available for industrial and commercial enterprises and public authorities. 

Features of Capital Market :-

1. Long term investment 

2. Primary and secondary market. 

3. Fund-raising 

4. Global nature 

5. Risk and return 

Functions of Capital Market :- 

1. Mobilization of Financial Resources.

2. Effective allocation of mobilised resources.

3. World insurance against market risk.

4. Securing the foreign capital and know how to fill up the deficit in the required resources.

5. Provide liquidity by enabling investors to sell financial assets.

Structure of Capital Market :- 

The structure of money market are divided in 2 circumstances. 

1. Security Market :- there are two types of security Market:-

• Government Securities 

• Corporate Securities 

 a) Primary Market b) Secondary Market 

2. Financial Institutions:- financial institutions are IFCI, ICICI, LIC, UTI, SFCs.

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