Capital markets is a part of financial market, where companies raise funds for their business needs by equities, bonds, derivatives etc. Capital market plays a important role in county's economic development. In this market, buyers and sellers trade with long term financial instruments.
We can divide capital market into two parts. One is primary market and second one is secondary market.
In primary market, companies initially offer their securities to public by Initial public offering(IPO) and trade directly with public. Other side, in secondary market, buyers and sellers trade with equities and debt, previously issued in primary market. Secondary market also known as stock market or stock exchange. Capital market is regulated by Securities and exchange board of India(SEBI). SEBI controls all the activities of all companies and take care of public interest.
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Saurav..


Thank you for such an easy definition.
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