Financial Markets Overview

Financial markets link savers and investors, channelling funds into productive uses, facilitating efficient allocation of resources.

The process of determining the price of a financial asset based on the balance of supply and demand in the market.

The ability to easily buy or sell financial assets, quickly converting them to cash.

A financial market where investors buy and sell long-term securities, such as stocks and bonds.

A financial market dealing with short-term debt instruments, often for less than a year, for borrowing and lending.

The capital market is a central hub connecting people who want to save money with people who need funding for long-term investments.

Shares, bonds, debentures, mutual funds, and public deposits are all examples of financial instruments used in the capital market. They represent different ways to invest and raise money.

The capital market helps allocate resources to projects that have the potential to generate a good return on investment. It helps channel funds towards industries and companies that are expected to grow and contribute to the economy.

The capital market involves the exchange of long-term financial instruments with maturities of more than one year. This includes investments in companies, infrastructure projects, and government bonds.

The capital market facilitates the flow of funds from those who save to those who need money to grow their businesses or projects. Savers earn returns on their investments, while businesses get the necessary capital to expand and create jobs.