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In other words:
The capital market (securities markets) is the market for
securities, where companies and the government can raise
long-term funds. The capital market includes the stock
market and the bond market
FEATURES
Engine of growth
FINANCIAL ASSETS/INSTRUMENTS/SECURITIES
FINANCIAL INTERMEDIARIES
FINANCIAL MARKETS
FINANCIAL ASSETS / INSTRUMENTS / SECURITIES
The tangible/physical asset is one whose value depends on its
physical properties such as buildings, machines, furniture,
vehicles and so on.
The entity/economic unit that offers the future cash flows is the
issuer of the financial instrument and the owner of the
security is the investor. Depending upon the nature of
claim/return, an instrument may be:
DEBENTURE/BONDS: Debenture/bonds is a debt
instrument indicating that a company has borrowed
certain sum of money and promise to repay it in future
under clearly defined terms.
CAPITAL MARKET
DEBENTURE REDEMPTION RESERVE: is a
requirement in a debenture indenture providing for the
systematic retirement of debenture/bonds prior to their
maturity.
CAPITAL MARKET
EQUITY CAPITAL:
SOME TERMS:
CAPITAL MARKET