Capital Market: Capital market is a market for long-term debt and equity shares. In this market, the capital funds comprising of both equity and debt are issued and traded.
Capital market is of two types :
I. Primary market ;
ii. Secondary market
The primary market deals with the issuance of new securities.
Methods of issuing securities in the primary market are:
• Initial public offering;
• Rights issue (for existing companies);
• Preferential issue
Secondary market is a market where investors purchase securities or assets from other investors, rather than from issuing companies themselves. The national exchanges - such as the New York Stock Exchange and the NASDAQ are secondary markets.
Capital market is of two types :
I. Primary market ;
ii. Secondary market
The primary market deals with the issuance of new securities.
Methods of issuing securities in the primary market are:
• Initial public offering;
• Rights issue (for existing companies);
• Preferential issue
Secondary market is a market where investors purchase securities or assets from other investors, rather than from issuing companies themselves. The national exchanges - such as the New York Stock Exchange and the NASDAQ are secondary markets.
