Finance

Functions of Capital Market: While from a broader perspective, Capital Markets is viewed as a market of financial assets with long or infinite maturity, it plays a very important role in mobilizing resources and allocating them to productive channels. So it can be said that the process of economic growth of a country is facilitated by the Capital Markets. The important functions and significance of the markets have been discussed below:  Links Savers And Investors: The capital market serves as an intermediary between the people having excess funds and the ones who need funds. It channels the ideal lying resources to more productive sources where it can generate income and increase productivity. It mobilizes people’s savings by directing and guiding them for productive investment. These investments provide regular income and growth to the investors. Capital Formation: The capital market has an efficient role in capital formation in the economy. It fulfills and cate...

THE CAPITAL MARKET   What Are Capital Markets? Capital markets are venues where savings and investments are channeled between the suppliers who have capital and those who are in need of capital. The entities that have capital include retail and institutional investors while those who seek capital are businesses, governments, and people.  Capital markets are composed of primary and secondary markets. The most common capital markets are the stock market and the bond market. Capital markets seek to improve transactional efficiencies. These markets bring those who hold capital and those seeking capital together and provide a place where entities can exchange securities. kEY POINTS: Capital markets refer to the places where savings and investments are moved between suppliers of capital and those who are in need of capital. Capital markets consist of the primary market, where new securities are issued and sold, and the seco...