ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -The capital market is geared toward long-term investing. Companies issue stocks and bonds to raise money to grow their businesses. Investors buy them to share in that growth. The money market is less risky than the capital market while the capital market is potentially more rewarding.

Detailed explanation-3: -Capital Market is a market dealing in medium and long-term funds. It is an institutional arrangement for borrowing medium and long-term funds and which provides facilities for marketing and trading of securities.

Detailed explanation-4: -On the other hand, the capital market is also a component of the financial market that allows long term trading of equity and debt securities. Money markets deal in short term lending, borrowing, buying and selling. In contrast, capital markets deal in long term lending or borrowing.

Detailed explanation-5: -Financial Markets include any place or system that provides buyers and sellers the means to trade financial instruments, including bonds, equities, the various international currencies, and derivatives. Financial markets facilitate the interaction between those who need capital with those who have capital to invest.