What is Capital Market Stock Market


  What is Capital Market 

Long term investment and capital gaining market is called capital market .Short term transaction done in money market but for long term investment done in capital market.


How to work Capital Market

Basically Capital market divided in two parts

1) Government securities market 

2) industrial securities market

Industrial securities market also divided in two parts 

A. Primary capital market

B. Secondary capital market

What is Government Securities How it's work? 

1.Government securities market :

Government build long term capital from issuing govt.securities.these securities selling through RBI many investors,LIC,EPFO,etc. investment in Gov.securities. Because it's assured investment for long term assured benefit and liquidity is so high.so it called Gilt edge Market Gilt means Gold gov.sec. market assurance is so high like gold.

What is Stock market 

2.Indistrial Securities market 

Industry also build capital from market through selling share and bonds in stock market. NSE,BSE,and all other market selling share ,stocks .In primary Capital market new established company build their capital and Secondary market repurchase old companies share or stock.

 What is SEBI how it's Work

          SEBI  (security Exchange Board of India) 

 It was established on 12 April 1988 and given Statutory Powers on 30 January 1992 through the SEBI Act, 1992.

The Securities and Exchange Board of India.the regulatory body for securities and commodity market in India under the jurisdiction of Ministry of Finance, Government of India.

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