FINANCIAL MARKETS
CAPITAL MARKET
The term capital market refers to the facilities
and institutional arrangements through which long-term funds, both debt and
equity are raised and invested. It consists of a series of channels through
which savings of the community are made available for industrial and commercial
enterprises and for the public in general. It directs these savings into their
most productive use leading to the growth and development of the economy. The
capital market consists of development banks, commercial banks and stock
exchanges. An ideal capital market is one where finance is available at
reasonable cost. The process of economic development is facilitated by the
existence of a well functioning capital market.
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