Justify the following statement.Capital Market is useful for the corporate sector.
Answer»
Capital Market is the market that provides loans for long-term periods. It is controlled by SEBI.
It uses shares, debenture bonds, Mutual funds.
The corporate sector issues these securities in the market and attracts saving from investors by offering them a variety of schemes. These savings become capital and get invested in the business.
It is helpful to develop the corporate and industrial sectors.
Thus, the capital market is useful for the corporate sector.