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“.