Question

1. Giving appropriate examples, discuss the key capital markets.

Answer 1

Capital markets are used for generation of the long term finances as it can be indicated by the name that they will be used for generation of Finance which can be used for the longer period of time and hence these markets are often providing with issuance and trading of the long-term securities.

Capital market can be used for generation of funds for various companies through issuance of equity shares as well as debt instrument so capital markets will be providing them with adequate opportunity of raising of capital for the longer period of time. Equities will be reflecting the the ownership in a company whereas Debt will be reflecting the credit entitlement.

KEY CAPITAL MARKETS currently are New York stock exchange, American stock exchange, London stock exchange, NASDAQ

these stock exchanges will be providing with the adequate liquidity and availability of long term finance through issuance of equity shares and debt instruments which will help the company in operations and it will also provide a medium for various investors to participate in the growth of company by investment into their securities.