ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money market where debt and stocks are traded and maturity period is more than a year is classified as capital markets. Capital markets refer to the places where savings and investments are moved between suppliers of capital and those who are in need of capital.

Detailed explanation-2: -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-3: -Capital market is referred to as a market where trading of financial securities like stocks, bonds, etc takes place between buyer and seller of those securities.

Detailed explanation-4: -A capital market is a long-term market meaning the maturity period of the borrowed fund is more than a year, and the money market is a short-term market meaning the maturity period of the borrowed fund is less than a year.

Detailed explanation-5: -The capital market encompasses the trade in both stocks and bonds. These are long-term assets bought by financial institutions, professional brokers, and individual investors.