Basics of Capital market

Definition 

     The place where you can buy and sell financial instruments (Equity and Debt) .It is a channel of saving and investments between suppliers of capital such as reatil and instiutional investors,and users of capital like Business,Governement and individuals. 

  Capital Market is Broad concept, we can devide into two parts 

* Debt Market 

* Equity Market 

Debt Market:

It is financial market in which the participants are provided with the issuance and trading of debt securiteies.This market is also called Bond market or credit market.

Examples : Loans,Bonds and Debentures etc..

Equity Market :

The Market in which shares are issued and traded. either through exchanges or over the counter markets.also known as the stock market . 

Examples :Stocks, Convertible Debentures and Prefered stocks etc..   

In Any market either debt or eqity,they classified two ways 

*Primary Market

Primary marekt deals with issuing new securieties and raise the capital from the investors. 

                    if you considering the debt market,they will issue the bonds to investors and raise the capital.

Ex :Government ,coorporate bodies.

                  if you considering the equity market, will share the partnership to investors form their companey through Ipo's (Initail public offer).

Ex: companies .

*Secondary Market

Secondary market provide the opportunity  to trade these instruments issued by primary market. this will help to freefloating the instruments.