Capital market is a market where securities with their original maturity of over one year are traded.
there are several securities which are part of capital market.
1. Mortgages.
2.Corporate Stocks.
3.Debentures.
4.Long-term Govt. Securities.
5.Corporate and Municipal Bonds.
It is an institutional arrangement to borrow and lend money for a longer period of time. It consists of financial institutions like IDBI, ICICI, UTI, LIC, etc. These institutions play the role of lenders in the capital market. Business units and corporate are the borrowers in the capital market. Capital market involves various instruments which can be used for financial transactions. Capital market provides long term debt and equity finance for the government and the corporate sector. Capital market can be classified into primary and secondary markets. The primary market is a market for new shares, where as in the secondary market the existing securities are traded. Capital market institutions provide rupee loans, foreign exchange loans, consultancy services and underwriting.
STOCK MARKETS
Indian stock markets can be divided into two branches.First with respect to returns obtained from the stock market and second by examining the state of maturity of Indian stock markets.
Stock Market can be affected by so many factors like demonstration effects of the overseas market,movement on the FII front,corporate news,market's turnover etc. and some time non financial news and events can also effect stock markets.
there are several securities which are part of capital market.
1. Mortgages.
2.Corporate Stocks.
3.Debentures.
4.Long-term Govt. Securities.
5.Corporate and Municipal Bonds.
It is an institutional arrangement to borrow and lend money for a longer period of time. It consists of financial institutions like IDBI, ICICI, UTI, LIC, etc. These institutions play the role of lenders in the capital market. Business units and corporate are the borrowers in the capital market. Capital market involves various instruments which can be used for financial transactions. Capital market provides long term debt and equity finance for the government and the corporate sector. Capital market can be classified into primary and secondary markets. The primary market is a market for new shares, where as in the secondary market the existing securities are traded. Capital market institutions provide rupee loans, foreign exchange loans, consultancy services and underwriting.
STOCK MARKETS
Indian stock markets can be divided into two branches.First with respect to returns obtained from the stock market and second by examining the state of maturity of Indian stock markets.
Stock Market can be affected by so many factors like demonstration effects of the overseas market,movement on the FII front,corporate news,market's turnover etc. and some time non financial news and events can also effect stock markets.
