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What is meant by 'Capital Market'? Name the two segments of Capital Market. |
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Answer» Capital market includes all those organisations, institutions and instruments that provide long-terms and medium-term funds through shares, bonds, debentures, etc. It consists of development banks, commercial banks and stock exchanges. Two segments of capital market: (i) Primary Market: Primary market refers to the market wherein securities are sold for the first time. It is also known as New Issue Market. The securities through which a company can raise capital in primary market are: Equity Shares, Preference Shares, Debentures, etc. (ii) Secondary Market: Secondary market refers to the market for sale and purchase of previously issued securities. It is also known as the Stock Market or Stock Exchange. In this market, securities are exchanged between the investors. |
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