Capital market deals in Medium and long term securities.

Capital Market Definition:
The capital market is a segment of the financial market where long-term securities such as stocks and bonds are bought and sold. It is a market for raising funds by companies and governments for investment and expansion purposes.

Medium and Long-term Securities:
Medium and long-term securities are financial instruments that have a maturity period of more than one year. These securities are issued by companies, governments, and other entities to raise funds for various purposes such as expansion, infrastructure development, and research and development. Some examples of medium and long-term securities include shares, debentures, bonds, and mutual funds.

Key Characteristics of Capital Market:
1. Long-term Investments: Capital market deals primarily with long-term investments where the maturity period is more than one year. It provides a platform for companies and governments to raise funds for their long-term projects.

2. Trading of Securities: The capital market facilitates the buying and selling of securities such as stocks and bonds. Investors can trade these securities through various exchanges like stock exchanges and bond markets.

3. Investment Opportunities: Capital market provides investors with a wide range of investment opportunities. They can invest in different types of securities based on their risk appetite, return expectations, and investment objectives.

4. Capital Formation: The capital market plays a crucial role in the formation of capital for companies and governments. It enables them to raise funds for their investment and expansion plans, which in turn contributes to economic growth and development.

5. Pricing of Securities: Capital market determines the prices of securities based on demand and supply dynamics. Factors such as company performance, market conditions, and investor sentiment influence the pricing of securities.

6. Intermediaries: Capital market involves various intermediaries such as brokers, investment banks, and financial institutions that facilitate the buying and selling of securities. These intermediaries provide services like underwriting, advisory, and custodial services.

7. Regulation and Oversight: Capital markets are regulated by regulatory authorities to ensure fair and transparent trading practices. These authorities set rules and regulations to protect investors' interests and maintain the integrity of the market.

Conclusion:
In conclusion, the capital market deals in medium and long-term securities. It provides a platform for companies and governments to raise funds for their long-term projects. Investors can trade these securities through various exchanges, and the market is regulated to ensure fair practices.