What are capital markets 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.
How many instruments are there in capital market?
The three main participants of the capital markets are savers (also known as investors), borrowers, and stockholders. The term capital market includes the stock market, bond market, and related markets.
What are the 4 types of capital market?
Capital Market Instruments They are marketable and their yields vary with changing credit and capital market conditions. Longer-term debt owed by the government. Privately owned longer-term debt that is sponsored by the government. Long-term debt of the local government.