Capital markets are venues where fund are channelised between capital supplier and capital borrower. Capital market is a long term market where fund transaction over more than one years. Capital markets are composed of primary and secondary market. The most common capital markets are the stock market and bond market.
Primary market - primary market also called new issues market because in this market any company or organization raise funds first time from direct public. Here sellar of share and buyers of share participate. There securities are considered primary offering or initial public offering ( IPO). When a company goes public, it's sell its stock and bonds to large scale and institutional investors such as hedge funds, pension fund and investment fund. Here foreign investors are also participate.
Secondary market- secondary market related with stock market or exchange. When a public company raise fund from public in primary market it is necessary to list the company with stock market, where share, can be exchanged among the public.
Actually capital formation exists in primary market because fund raising company use this fund in productive activities wheres secondary market provide a plateform where securities can be exchanged without capital formation. This is only change in ownership.Primary market,secondary market,primary market and secondary market,secondary market explained in Hindi,secondary market kya hai,प्राथमिक बाज़ार,द्वितीयक बाज़ार,capital market,पूँजी बाज़ार,capital markets,capital markets explained,capital market explained in hindi,primary market vs secondary market,definition of capital market,definition of capital market in hindi,capital market kya hai,capital market kya hai in hindi,capital market kya hota hai
Негізгі бет Capital Market Explained in hindi| Primary market and Secondary market| प्राथमिक व द्वितीयक बाज़ार
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