BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Secondary markets
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Discount markets
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Primary capital markets
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Gilt repo market
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Detailed explanation-1: -New securities are issued (created) and sold to investors for the first time in the primary market. Thereafter, investors trade these securities on the secondary market. The primary market is also known as the new issues market.
Detailed explanation-2: -Capital Market: Capital market is a market for long-term debt and equity shares. In this market, the capital funds comprising of both equity and debt are issued and traded. This also includes private placement sources of debt and equity as well as organized markets like stock exchanges.
Detailed explanation-3: -Capital markets are used primarily to sell financial products such as equities and debt securities. Equities are stocks, which are ownership shares in a company. Debt securities, such as bonds, are interest-bearing IOUs.
Detailed explanation-4: -Capital market is a place where buyers and sellers indulge in trade (buying/selling) of financial securities like bonds, stocks, etc. The trading is undertaken by participants such as individuals and institutions. Capital market trades mostly in long-term securities.
Detailed explanation-5: -The term capital market includes the stock market, bond market, and related markets.