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.
Capital markets help
channelise surplus funds from savers to institutions which then invest them
into productive use. Generally, this market trades mostly in long-term
securities.
Capital market
consists of primary markets and secondary markets. Primary markets deal with
trade of new issues of stocks and other securities, whereas secondary market
deals with the exchange of existing or previously-issued securities.
