Updated on February 08, 2024Table of Contents
Capital markets are the markets where long-term debt and equity securities are traded. These markets play a crucial role in the overall economy by providing a way for businesses and individuals to raise capital and for investors to save their money.
What is meant by capital markets?
Capital markets refer to financial markets where long-term debt or equity-backed securities are bought and sold. These markets help raise capital for companies, governments, and other entities by providing a platform for investors to invest in stocks, bonds, and other financial instruments.
What is the difference between capital markets and money markets?
Capital markets deal with long-term investments, typically with securities that have a maturity of more than one year, such as stocks and bonds. Money markets, on the other hand, focus on short-term borrowing and lending, often dealing with instruments like treasury bills or commercial paper with maturities of less than a year.
What is the role of capital markets in India?
In India, capital markets play a crucial role in mobilizing savings and channeling them into productive investments. They help businesses and the government raise funds for growth and development, contributing to the overall economic progress of the country.
Categories
Pocketful is an advanced trading platform that empowers traders with cutting-edge technology. We provide innovative tools and resources to make trading more accessible and practical.
