3. Characteristics of Capital Markets

Following characteristics are typical of Capital Markets:

1. The capital market is the market for securities, where companies and governments can raise long-terms funds.

2. The market in which corporate equity and loner-term debt securities those maturing in more than one year are issued and traded.

3. The capital market is market for long-term debt equity shares. In this market, the capital funds comprising of both equity and debt are issued and traded.

4. The market in which long-term securities such as stocks and bonds are bought and sold.

5. The capital market comprises financial securities, government securities, semi-government securities.

6. The capital market concerns two broad types of securities traded - debts and equity. Buying stock allows investors to gain an equity interest in the company and become an owner of the company.