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Needed a Document for explain the instruments of capital market?
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Capital market:
Capital market which is also known as the securities market is a trading market that garners capital from the investors and makes them available to companies and the government for development of projects. The capital market includes the bond market and the stock market among others. The capital market consists of development bank, commercial banks and stock exchanges.
There are two types of instruments that are traded in the capital market. They are as follows:
Bonds: bonds are basic debt securities that are traded in the capital market. Companies issue bonds to raise capital as investors subscribe to them. Issuing bonds helps the company raise capital for the growth and expansion of the business at cheaper rates than banks and lending institutions. The bond issuer pays interest and returns the principal at the end of the duration. The government also issues bonds to raise money for government projects.
Stocks: stocks are the right of ownership in a Company. The buyer of the shares is known as a shareholder. Investors buy and sell shares over a stock exchange like NSE and BSE.
There are two types of instruments that are traded in the capital market. They are as follows:
Bonds: bonds are basic debt securities that are traded in the capital market. Companies issue bonds to raise capital as investors subscribe to them. Issuing bonds helps the company raise capital for the growth and expansion of the business at cheaper rates than banks and lending institutions. The bond issuer pays interest and returns the principal at the end of the duration. The government also issues bonds to raise money for government projects.
Stocks: stocks are the right of ownership in a Company. The buyer of the shares is known as a shareholder. Investors buy and sell shares over a stock exchange like NSE and BSE.
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Needed a Document for explain the instruments of capital market? Related: Instruments of Capital market, Indian Financial system
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Needed a Document for explain the instruments of capital market? Related: Instruments of Capital market, Indian Financial system for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Needed a Document for explain the instruments of capital market? Related: Instruments of Capital market, Indian Financial system covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Needed a Document for explain the instruments of capital market? Related: Instruments of Capital market, Indian Financial system.
Needed a Document for explain the instruments of capital market? Related: Instruments of Capital market, Indian Financial system for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Needed a Document for explain the instruments of capital market? Related: Instruments of Capital market, Indian Financial system covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Needed a Document for explain the instruments of capital market? Related: Instruments of Capital market, Indian Financial system.
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