What are Capital Markets?
Capital markets refer to the places where savings and investments are moved between suppliers of capital and those who are in need of capital.Capital markets consist of the primary market, where new securities are issued and sold, and the secondary market, where already-issued securities are traded between investors.The most common capital markets are the stock market and the bond market.
Primary vs. Secondary Markets
Capital markets are composed of primary and secondary markets.
Primary markets are open to specific investors who buy securities directly from the issuing company. These securities are considered primary offerings or initial public offerings (IPOs). The secondary market, on the other hand, includes venues overseen by a regulatory body like the Securities and Exchange Board of India (SEBI) where existing or already-issued securities are traded between investors. Issuing companies do not have a part in the secondary market. The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are examples of the secondary market.
Take the time to review your investment decisions and contact one of our helpful Financial Advisors to answer your questions or get advice. A little knowledge can make a big difference when it comes to Investing in Share Market.
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