capital_market22__35

May 19th, 2015
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1. Capital Market:- Basically the capital market is a type of financial market, it includes the stock and bond markets as well. But in general the capital market is the market for securities where either companies or the government can raise long term funds. One way that the companies or the government raise these long term funds is through issuing bonds, which is where a person buys the bond for a set price and allows the government or company to borrow their money for a certain time period but they are promised a higher return for allowing them to borrow the money, the higher return is paid through interest that accurse on the money that the government or company borrows.

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1. Capital Market:- Basically the capital market is a type of financial market, it includes the stock and bond markets as well. But in general the capital market is the market for securities where either companies or the government can raise long term funds. One way that the companies or the government raise these long term funds is through issuing bonds, which is where a person buys the bond for a set price and allows the government or company to borrow their money for a certain time period but they are promised a higher return for allowing them to borrow the money, the higher return is paid through interest that accurse on the money that the government or company borrows.A capital market is a market where both government and companies raise long term funds to trade securities on the bond and the stock market. It consists of both the primary market where new issues are distributed among investors, and the secondary markets where already existent securities are traded.The capital market actually consists of two markets. The first market is the primary market and it is where new issues are distributed to investors, and the secondary market where existing securities are traded.It is a market in which financial securities like stock, bonds, mortgages, and derivatives are traded. The main function of capital market is to channelize resources from investors to those who are in need of resources such as capital market is one of the financial intermediaries of financial se

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