State the characteristics of capital market.

1.	State the characteristics of capital market.
Answer» Characteristics of capital market: Capital market is a market for raising long term capital fund. Instruments of capital market include government securities, debt instruments, securities of industrial enterprises like shares and debentures. Investment of fund is in long term securities. In India, capital market is strictly regulated by Securities and Exchange Board of India (SEBI). Ownership of shares and debentures is easily transferrable. Provides liquidity to financial assets (securities). Capital market is divided into two parts: Primary market and Secondary Market

Answer»

Characteristics of capital market:

Capital market is a market for raising long term capital fund.
Instruments of capital market include government securities, debt instruments, securities of industrial enterprises like shares and debentures.
Investment of fund is in long term securities.
In India, capital market is strictly regulated by Securities and Exchange Board of India (SEBI).
Ownership of shares and debentures is easily transferrable.
Provides liquidity to financial assets (securities).
Capital market is divided into two parts:
1. Primary market and
2. Secondary Market

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