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FINANCIAL MARKET — OCM STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceOCMFINANCIAL MARKET3 Marks
Question
State the characteristics of capital market.
✓

Answer

Characteristics of capital market:
  • Capital market is a market for raising long term capital fund.
  • Instruments of capital market include government securities, debt instruments, securities of industrial enterprises like shares and debentures.
  • Investment of fund is in long term securities.
  • In India, capital market is strictly regulated by Securities and Exchange Board of India $(SEBI).$
  • Ownership of shares and debentures is easily transferrable.
  • Provides liquidity to financial assets $($securities$).$
  • Capital market is divided into two parts:
    1. Primary market and
    2. Secondary Market

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