Capital Market.December 23, 2020
A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold. Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments. Financial regulators like Securities and Exchange Board of India (SEBI), Bank of England (BoE) and the U.S. Securities and Exchange Commission (SEC) oversee capital markets to protect investors against fraud, among other duties.
Versus money markets :
|Regulation · Financial law|
The money markets are used for the raising of short-term finance, sometimes for loans that are expected to be paid back as early as overnight.
What are the types of capital markets :
These markets are divided into two different categories: primary markets—where new equity stock and bond issues are sold to investors—and secondary markets, which trade existing securities.
What is meant by capital market :
Definition: Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc. The buying/selling is undertaken by participants such as individuals and institutions. Generally, this market trades mostly in long-term securities.
What is capital market and examples :
Capital markets are the markets in which securities with maturities of greater than one year are traded. The most common capital market securities include stocks, bonds, and real estate investment trusts (REITs). Money markets are the markets for financial products with maturities of less than one year.