Capital Market

Capital Market Definition: A capital market is a market where both government and companies raise long term funds to trade securities on the bond and the stock market. It consists of both the primary market where new issues are distributed among investors, and the secondary markets where already existent securities are traded.
In the capital market, mortgages, bonds, equities and other such investment funds are traded. The capital market also facilitates the procedure whereby investors with excess funds can channel them to investors in deficit. Know more about capital market theory: Capital Market Theory

The capital market provides both overnight and long term funds and uses financial instruments with long maturity periods. The stock market forms a major portion of the capital market.

Capital Market Instruments 

Know more about Capital Market InstrumentsThe following financial instruments are traded in this market:

Capital Market Regulatory Authorities

The following are some of the main capital market regulatory authorities:

  • U.S. Securities and Exchange Commission
  • Securities and Exchange Board of India
  • Australian Securities and Investments Commission
  • Authority of Financial Markets (France)
  • Canadian Securities Administrators
  • Securities and Exchange Surveillance Commission (Japan)

Size of the Global Capital Markets

Year Stocks Bonds Bank assets Total of stocks, bonds and bank assets World GDP
2013 62552 99788.8 120421.6 282762.4 74699.3
2012 52494.9 99134.2 116956.1 268585.2 72216.4
2011 47089.23 98388.1 110378.24 255855.57 69899.22

 

More Information About Capital Market
Primary Market Secondary Market Primary Vs Secondary Market
Global Capital Market Capital Market Companies Capital Market Reform
Venture Capital Market Capital Market Transactions Capital Market Line
Capital Market Services Capital Market Securities Capital Market Liberalization
Secondary Infrastructure Fund Capital Market Risk Capital Market Integration
Capital Market Instruments Equity Capital Market Efficient Capital Market
Debt Capital Market Capital Market Consultants Capital Market Conditions
Market Regulation Committee Capital Market Assumptions Capital Market Trends
Capital Market Theory Role Of Capital Market Risk Advisor
Capital Market Regulations Capital Market Investment Capital Market Research

Last Updated on : 20th July 2016