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What is Capital Market?

A capital Market is a planned market where both business organizations and individuals exchange and sell equity securities and debt. A capital market is expected to be for the distribution and exchanging of long-term securities. Here, long-term investment means its lock-in period is more than a year.

Sometimes, the government also engage in the capital market, particularly by the distribution of long-term bond. As the government is not allowed to issue shares and equity securities.

Functions of Capital Market

Types of Capital Market

The capital market is divided into two parts:

Other Capital Markets

Capital markets feature trading of other securities as well, including:

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