What is a capital market?

1 Answer
Aug 12, 2015

Capital market is a one in which long term funds are traded.

Explanation:

In the capital market, the market players are industrialists and business houses on the borrowing side. On the lending sides, there are some long term lending specialized financial institutions. Both sides prefer long term borrowing and lending.

In short Capital market is not a place. It is a system with borrowers one one side and lenders on the other side and they are in close touch with one another.