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SST COLLEGE OF ARTS AND

COMMERCE
SUB: MANAGEMENT APPLICATION
TOPIC: CAPITAL MARKET
ROLL NO: 20071
PRESENTED BY: SHWETA GAWDE.
PRESENTED TO: PRO. VARASHA
SAWLANI.
► Capital market is a financial market which deals with
long-term funds i.e. lending and borrowing for a long term
period.
CAPTIAL MARKET

Financial institutions
Commercial banks
Mutual funds
Stock market
Wants to expand
business

XYZ Ltd company

Mr. AB

Where can he get money from ?


► From commercial banks
► Stock market
► Mutual fund
► Business corporations
► Financial institutions
Types of capital market
There are main two types of capital market
► Primary market
It is that market in which shares, debentures and other securities are sold for the first time
for collecting long-term capital.
► Secondary market
The secondary market is that market in which the buying and selling of the previously
issued securities is done.
Capital market

Primary Secondary
market market

• Public issue • Stock market


• Right issue
• Private placement
Functions of capital market
► Mobilization of savings

► Capital formation

► Link between lenders and borrowers of money

► Generates employment

► Easy liquidity

► Economic growth and development

► Foreign capital

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