Question

Mention two major instruments of capital market.

Answer 1

Hi there…

The instruments issued in capital markets are listed below:

Shares: Share is the share in the share capital of the company.Share is one of the units into which the capital of company is divided. A person having the shares of the company is called as shareholder of that company, He is regarded as the part of owner of the company.

There are 2 types of shares:

Equity shares

Preference shares

2. Debentures : Debentures are long term borrowed funds of the company. They have fixed maturity period as well as fixed interest rate. These are the certificates issued under common seal of the company.

this may help you.

regards