what is capital Market and its instrument
Capital market is the market for financial assets that have long indefinite maturity.
- capital market can be divided into two parts : one covering the market for corporate securities and the other covering the market for corporate securities and the other covering the market for gift edged securities securities issued by the central government ,state government and quasi government bodies.
- Capital market can be divided into two segment
- primary market
- secondary market
- New issue are made in the primary market.Outstanding issues are traded sold or bought in the secondary market.
- When company wishes to raise capital by issuing securities .It goes to the primary market facilitates the formation of capital.
Share Capital : Funds raised by issuing shares in return for cash or other considerations. The amount of share capital a company has can change over time because each time a business sells new shares to the public in exchange for cash, the amount of share capital will increase. It can be composed of both common and preferred shares.
A portion of companies equity that have been obtained by issuing shares. Investment made by a person a company, in order to become its shareholder can be made by buying its shares for which the gets dividend.It Composed of common and preferred shares.