(a) The capital market is a market for financial assets which have a long or indefinite maturity. Capital market involves various instruments which can be used for financial transactions. Capital market provides long term debt and equity finance for the government and the corporate sector. 

Capital market can be classified into primary and secondary markets. The primary market is a market for new shares, where as in the secondary market the existing securities are traded. Capital market institutions provide rupee loans, foreign exchange loans, consultancy services and underwriting. 

Functions of the capital market : 

(i) Mobilization of Savings : Capital market is an important source for mobilizing idle savings from the economy. It mobilizes funds from people for further investments in the productive channels of an economy. In that sense it activate the ideal monetary resources and puts them in proper investments. 

(ii) Capital Formation : Capital market helps in capital formation. Capital formation is net addition to the existing stock of capital in the economy. Through mobilization of ideal resources it generates savings; the mobilized savings are made available to various segments such as agriculture, industry, etc. This helps in increasing capital formation.

(b) The main objectives of industrial relations are : 

• To safeguard the interest of labour and management by securing the highest level of mutual understanding and goodwill among all those sections in the industry which participate in the process of production. 

• To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country. 

• To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism. 

• To establish and promote the growth of an industrial democracy based on labour partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well. 

• To eliminate or minimize the number of strikes and lockouts by providing reasonable wages, improved living and working conditions, said fringe benefits. 

• To improve the economic conditions of workers in the existing state of industrial managements and political government.