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Justify the following statement. Capital market is useful for corporate sector. - Secretarial Practice

Short Note

Justify the following statement.
Capital market is useful for corporate sector.

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Solution

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

Balbharati Secretarial Practice 12th Standard HSC Maharashtra State Board
Chapter 11 Financial Market
Exercise | Q 6.3 | Page 169
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