Hollis Demasters: Meaning and Concept of Capital Market Capital Market is one of the significant aspect of every financial market. Hence it is necessary to study its correct meaning. Broadly speaking the capital market is a market for financial assets which have a long or indefinite maturity. Unlike money market instruments the capital market intruments become mature for the period above one year. It is an institutional arrangement to borrow and lend money for a longer period of time. It consists of financial institutions like IDBI, ICICI, UTI, LIC, etc. These institutions play the role of lenders in the capital market. Business units and corporate are the borrowers in the capital market. Capital market involves various instruments which can be used for financial transactions. Capital market provides long term debt and equity finance for the government and the corporate sector. Capital market can be classified into primary and secondary markets. The primary market is a ma! rket for new shares, where as in the secondary market the existing securities are traded. Capital market institutions provide rupee loans, foreign exchange loans, consultancy services and underwriting.Mobilization of Savings : Capital market is an important source for mobilizing idle savings from the economy. It mobilizes funds from people for further investments in the productive channels of an economy. Capital Formation : Capital market helps in capital formation. Capital formation is net addition to the existing stock of capital in the economy. Service Provision : As an important financial set up capital market provides various types of services. It includes long term and medium term loans to industry, underwriting services....Show more
Derrick Cacioppo: The capital market operators are basically the ones responsible for administrating the stock market. This involves the management of the daily business transactions that occur. The operators can be composed of stoc! k brokers, market makers and fund managers.
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