Capital market instruments are those financial assets that are issued by the government or by private companies. The latter include shares, debentures, preference shares, etc.
What is capital market instruments?
Capital market instruments ensure a seamless flow of funds in an economy. They transfer surplus funds from investors to those in need of capital for expansion and therefore help in the balanced growth of the economy by promoting investments and savings. The capital market has two parts—primary and secondary markets.
What are the 4 types of capital market?
Definition and Examples of Capital Markets Capital markets are financial markets where buyers and sellers trade assets. Businesses typically use capital markets to raise new capital—funds that a business uses to grow or meet current operating expenses—by issuing assets like stocks or bonds.
What is capital market and examples?
What are Money Market Instruments? Money market instruments are short-term financing instruments aiming to increase the financial liquidity of businesses. The main characteristic of these kinds of securities is that they can be converted to cash with ease, thereby preserving the cash requirements of an investor.