Question

State the characteristics of Capital Market.

Answer 1

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Some of the main features of a Capital Market are as follows: ... The common instruments used in capital market are shares, debentures, bonds, mutual funds, public deposits etc.....

Answer 2

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1. Link between Savers and Investment Opportunities:

Capital market is a crucial link between saving and investment process. The capital market transfers money from savers to entrepreneurial borrowers.

2. Deals in Long Term Investment:

Capital market provides funds for long and medium term. It does not deal with channelising saving for less than one year.

3. Utilises Intermediaries:

ADVERTISEMENTS:

Capital market makes use of different intermediaries such as brokers, underwriters, depositories etc. These intermediaries act as working organs of capital market and are very important elements of capital market.


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