Question

What are the various kinds of Capital Market? Explain.

Answer 1

• Primary Market:

1. Primary Market is a market for new issues or new financial claims.
2. Hence it is also called New Issues Market (NIM)
3. It deals with those securities which are issued to the public for the first time.

• Secondary Market:

1. It may be defined as the market for old (second-hand) securities, in the sense that securities that are previously issued in the primary market are traded here.
2. It covers both the stock Exchange and the counter market.