Management Notes

Reference Notes for Management

Capital Market – Concept, Importance, Types, Securities Traded, Participants, Regulations, Risks & MCQs | Financial Markets

Capital Market

Definition of Capital Market

Investing in and selling long-term financial instruments, such as stocks, bonds, and other securities, takes place on the capital market. Through it, investors, businesses, and governments can exchange capital, raising funds for a variety of purposes, such as expansion, project investment, and debt refinancing.

The capital market essentially serves as a platform for investors to earn returns on their investments, while issuers can obtain the necessary capital to fund their ventures and operations.

Money markets deal with short-term debt instruments and provide liquidity to the financial system, while the capital markets deal with longer-term securities, typically over one year in maturity.

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