BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Capital market is a market for long-term debt and equity shares. It is further divided in to?
A
Secondary Market and Bull Market.
B
Bull Market and Bell Market.
C
Primary Market and Secondary Market.
D
Primary Market and Government Cash Bond Market.
Explanation: 

Detailed explanation-1: -The term capital market refers to any part of the financial system that raises capital from bonds, shares, and other investments. New stocks and bonds are created and sold to investors in the primary capital market, while investors trade securities on the secondary capital market.

Detailed explanation-2: -The capital market is roughly divided into a primary market and a secondary market. A company that issues a round of stock or a new bond places it in the primary market for sale directly to investors or institutions. If and when those buyers decide to sell their shares or bonds, they do so on the secondary market.

Detailed explanation-3: -Capital Market: A capital market is a financial market in which long-term (over a year) instruments (i.e debt) or equity-backed securities are bought and sold.

Detailed explanation-4: -The primary market refers to the market where securities are created and first issued, while the secondary market is one in which they are traded afterward among investors.

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