Characteristics of Capital Market
Following are the nature/characteristic of a capital market:
The dealings in a capital market are done through the securities like shares, debentures, etc. The capital market is thus called securities market.
The price of the securities is determined based on the demand and supply prevailing in the capital market for securities.
There are many players in the capital market. The participants of the capital market include individuals, corporate sectors, Govt., banks and other financial institutions.
Capital market is not confined to certain specific locations, although it is true that parts of the market are concentrated in certain well-known centers known as Stock Exchanges. It has its impact in the overall economy, wherever suppliers and users of capital get together and do business.
Capital market provides a transaction platform for long term financial assets.