Explain the indian capital market, its role and functions in detail.
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Answer:
India has a fair share of the world economy and hence tye capital markets or the share markets of India form a considerable portion of the world economy . The capital market is vital to the financial system.
The capital markets are two main types. The primary markts and the secondary markets.
In a primary market companies, governments, or public sector institutions can rise funds through bond issues. Thus in primary markets , the party directly buys shares of a company. The process of selling new shares to investors are called underwriting.
In secondary markets, the stocks, the shares, bonds etc are bought and sold by the
customers. Example of secondary capital markets including the stock exchanges like NSE,BSE etc. In these markets using the technology of the current time, the shares and the bonds etc. are sold and purchased by parties or people.....
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