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Give an explanation of capital market?

Open uri20170510 32134 ughyv5?1494421703 gunesh asked almost 3 years ago

Hi, What is the definition of capital market?

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5 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

Capital markets are markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

Capital markets are markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals.

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Open uri20170510 32134 1uwcnoc?1494421631 Shubhangi Jain answered almost 3 years ago

DEFINITION: ----------- The capital markets are a source of financing for companies around the world. The most famous of the capital markets are the stock market and bond market. HOW IT WORKS (EXAMPLE): ----------------------- Companies utilize capital markets to raise money for projects by issuing stock IPOs, bonds and short-term money market securities. Individual investors wish to earn interest or dividends on their savings can meet companies looking to raise funds by issuing securities. To illustrate how a corporate bond moves through capital markets, suppose AB Co. needs to raise $1000. AB Co. offers a 10-year bond on the bond market with a par value of $1000. The bond is purchased by someone wishing to earn interest on the $1000 that they have available. AB Co. receives the $1000 in cash and the investor receives a bond and the promise of repayment plus interest. Should the bondholder later decide he no longer wants the bond, he can sell it to another investor in the marketplace. To illustrate using stocks, suppose AB Co. decided to raise more funds by issuing ten new shares of stock for $100 per share. AB Co. offers these shares in the market and someone purchases all ten for $1000 total. This time, the investor obtains stock certificates giving him partial ownership of the company. AB Co. gets the $1000 in funds they wanted to raise. As in the example above, should this investor wish to no longer hold these stocks, he can sell them to another investor in the stock market for the current market price. Should the company have extra cash, it could buy the stock back as well.

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Picsjoin 2017224123730582 Archana answered almost 3 years ago

Hie Gunesh, **DEFINITION of 'Capital Markets'** - Capital markets are markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. - Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.

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Data?1494421738 samkit kothari answered almost 3 years ago

Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc. The buying/selling is undertaken by participants such as individuals and institutions.

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