Question

What is a Capital Market?

Answer 1

• The capital market is a financial market for trading long-term financial securities. This market allows people, corporations, and governments to buy and sell long-term securities like shares, debentures, and bonds.
• This market enables enterprises to raise long-term capital for various growth operations. Capital markets are governed by their separate financial regulators, such as SEBI (Securities Exchange Board of India).
• Capital markets provide effective allocations of financial resources, promoting economic progress.