capital_market012

May 19th, 2015
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A capital market is simply any market where a government or a company can raise money (capital) to fund their operations and long term investment. Selling bonds and selling stock are two ways to generate capital, thus BOND MARKET and STOCK MARKET are considered capital markets. Capital Market is characterized as the provider of long-term financing. The instruments used for this long-term financing are equity instruments, insurance instruments, derivative instruments and bonds.

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Types of Financial market in India Capital Market Money Market Derivatives market Foreign Exchange market Commodity Market Insurance Market Mutual Fund MarketWhat is Capital Market? A capital market is simply any market where a government or acompany can raise money (capital) to fund their operations andlong term investment. Selling bonds and selling stock are twoways to generate capital, thus BOND MARKET and STOCKMARKET are considered capital markets. Capital Market is characterized as the provider of long-termfinancing. The instruments used for this long-term financing areequity instruments, insurance instruments, derivativeinstruments and bonds. Other examples of capital market instruments include equity,floating rate bonds, convertible bonds, asset backed securities,mortgage backed securities, and interest rate swaps.WhyCapitalMarketsExistCapital markets facilitate the transfer of capital (i.e.financial) assets from one owner to another.They provide liquidity.Liquidity refers to how easily an asset can betransferred without loss of value.A side benefit of capital markets is that the transactionprice provides a measure of the value of the asset.IndianCapitalMarketHistoricalperspectiveStock Market was for a privileged fewLack of Transparency - High tones costsNo use of TechnologyOutdated banking systemVolumes - less than Rs. 300 cr per dayIndian

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