Capital Market
The capital market is a financial market where long-term debt and equity securities are traded, including stocks, bonds, and other financial instruments. The market is used by companies, governments, and other organizations to raise funds for their operations, expansion, and investment.
The capital market allows investors to purchase securities to receive a return on their investment over a long period of time. The capital market is essential to the growth and development of economies around the world. Examples of capital markets include National Stock exchange – NSE and Bombay Stock Exchange – BSE
However, the capital market can also be volatile and subject to fluctuations due to various factors such as economic conditions, political instability, and investor sentiment. Additionally, regulators and policymakers must implement effective oversight and regulation to maintain market stability, promote transparency and protect investors’ interests.
Key Points
- Marketplace: Capital markets facilitate buying and selling of financial securities.
- Investment Opportunities: Offers avenues like stocks and bonds for potential returns.
- Economic Indicator: Reflects market sentiment and economic health.