Capital Market
The capital market plays an important role in mobilising the savings and diverting them in productive investment. It is a medium of transferring the financial resources from surplus and wasteful areas to deficit and productive areas meaning transfer of money or capital from those who have surplus money to those who are in need of investment thus increasing the productivity and prosperity of the country.
It deals in long-term loans. It supplies industry with fixed and working capital and finances medium-term and long-term borrowings of the central, state and local governments. The common instruments used in capital market are shares, debentures, bonds, mutual funds, public deposits etc. The funds which flow into the capital market come from individuals who have savings to invest, the merchant banks, the commercial banks and non-bank financial intermediaries, such as insurance companies, finance houses, unit trusts, investment trusts, venture capital, leasing finance, mutual funds, building societies, etc.
The capital market functions through the stock exchange. A stock exchange is a market which facilitates buying and selling of shares, stocks, bonds, securities and debentures. It is not only a market for old securities and shares but also for new issues of shares and securities. In fact, the capital market is related to the supply and demand for new capital, and the stock exchange facilitates such transactions.
Funds flow into the capital market from individuals and financial intermediaries which are absorbed by commerce, industry and government. It thus facilitates the movement of stream of capital to be used more productively and profitability to increases the national income. It prides incentives to savers in the form of interest, dividend or bonus and transfers funds to investors, thus leading to capital formation.
The capital market encourages economic growth by leading to the development of commerce and industry through the private and public sector. In an underdeveloped country where capital is scarce, the absence of a developed capital market is a greater hindrance to capital formation and economic growth.
Indian Business News
Saturday January 23, 2021
Mumbai, Maharashtra [India], January 23 (ANI/NewsVoir): MahaDAO, a decentralized autonomous organization (DAO) governed by its users, the MAHA community, are officially launching the first epoch for ARTH, the world's first non - depreciating currency.
Saturday January 23, 2021
Pattern analysis suggest following a breakout from the 13,000 mark, as Nifty penetrated and broke above the rising trend line resistance, it has probably marked a potential top at 14,653. For the next immediate medium term, the 14,650-14,750 zone will be a strong resistance area for the 50 pack.
Saturday January 23, 2021
Saturday January 23, 2021
Stove Kraft is a manufacturer of kitchen appliances
Saturday January 23, 2021
Friday January 22, 2021
Digital coin set for one of its worst weeks since March 2020
Friday January 22, 2021
Most global stocks dropped, with investors pruning their bullish bets as rising Covid-19 cases sparked concerns about corporate earnings and economic revival
Friday January 22, 2021
The qualified institutional buyer (QIB) portion of the issue was subscribed 190x, while the high networth individual or HNI segment was subscribed 263x
Friday January 22, 2021
From its previous close of Rs 441.95 apiece on Thursday, the stock closed 10.89 per cent or Rs 48.15 lower at Rs 393.80, on Friday
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