Concept of Capital Market

Concept of Capital Market

The market dealing in long term finance is known as capital market. This market makes available funds for long-term investment. Hence, capital market is a market for long term credit.

The meaning of capital market becomes clear from the following definitions:-According to Dudley G. Luckett, “A capital market is just what the name implies: a market for capital funds. Strictly speaking, the capital market encompasses any transactions involving long-term debt or equity obligations“.

In the words of S.K. Cooper and others, “The framework for the borrowing and lending of funds for periods longer than a year is called the capital market“.

World Bank has defined the capital market as, “The market in which long-term financial instruments such as equities and bonds are raised and traded”.

2 Responses

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  2. […] Concept of Capital Market […]

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