Savings and investments are directed between suppliers and people or institutions with resources to lend or invest and those in need through capital markets. Banks and investors are common suppliers, whereas enterprises, governments, and individuals are typical buyers. Primary markets and secondary markets are the two types of capital markets. The trade of fresh issues of stocks and other securities takes place on primary markets, whilst the exchange of existing or previously-issued securities takes place on secondary markets. The nature of the securities traded, That is, stock market and bond market, is another major split in the capital market. The goal of capital markets is to increase transactional efficiency. These markets bring suppliers and people seeking money together and provide a venue for them to trade securities.

Prachi Garg

178 resources

0

0

0

Like