Justify the following statement.
Capital market is useful for corporate sector.
- Capital market is the market for borrowing and lending long-term capital required by business enterprises.
- The capital market is the core of a country's financial system as it helps in the mobilisation of resources.
- Through this market, corporates, industrial organisations, financial institutions access long-term funds from both domestic as well as foreign markets.
- Capital market also contribute to capital formation in the economy.
- Hence, capital market is useful for corporate sector.
Concept: Types of Financial Market
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