Capital Market


 
 
Concept Explanation
 

Capital Market

Capital market is a market that deals in medium and long term funds. It is an institutional arrangement for borrowing medium and long term funds that provide facilities for marketing an trading securities. So, it constitutes all long term borrowings from banks and financial institutions by issuing various securities such as shares, debentures, bonds, etc.

The capital market is divided into two interdependent segments: 1. The primary market provides the channel for creation of funds through issuance of new securities by companies, governments or public institutions.

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