Importance of Capital Market for the Economic Development of India
The capital market is the market for securities, where
Companies and governments can raise long-term funds. It is a market in which money is lent for periods longer than a year. A nation's capital market includes such financial institutions as banks, insurance companies, and stock exchanges that channel long-term investment funds to commercial and industrial borrowers. Unlike the money market, on which lending is ordinarily short term, the capital market typically finances fixed investments like those in buildings and machinery.
Nature and Constituents:
The capital market consists of number of individuals and institutions
(including the …show more content…
Role of Securities Markets in Economic Development The increasing stringency of terms on both domestic and international loans, the urgency of mobilizing domestic resources by means other than dent finance has been greatly identified. The alternative to debt finance, of course is equity market. Capital market refers to the market for long and medium term funds for the business enterprise. It can be divided into securities and non-securities market. Securities market in turn may be divided unto the markets for primary issues and markets for secondary trading of the issued securities. In the secondary market, the existing securities change from the investor to another. There is no additional