Capital market helps commercial development of the country by meeting the long-term capital requirement of firms. It is a market for medium and long-term funds. It channelizes savings into investment or productive use. Capital market explained in simple language.

The main functions of capital market are Mobilisation of financial resources, Promotes Industrial Development, Promotes economic growth and Effective allocation of the mobilised financial resources.

There are two types of capital market: Primary market and Secondary market.

A stock exchange lists the securities issued by companies. It refers to exchange of stocks between buyers and sellers. Its function is to provide ready and continuous market for securities

The common instruments used in capital market are: Shares and Debentures

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