ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Capital markets are mainly divided into two types-Primary Markets and Secondary Markets. The primary market refers to a place where securities are created whereas the secondary market refers to a place where these securities are traded.

Detailed explanation-2: -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-3: -Capital markets are those market where trading of assets such as bonds, equity and securities take place. Capital markets deal with financial instruments that are having a lock-in period of more than one year. There are two types of capital markets, namely: Primary market.

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.