Thursday, March 30, 2017

Working of Capital Market In India

Working of Capital Market In India

Indian Securities Market

This market refers to the market which deals in equities and debentures of the corporates. This market consist of PRIMARY MARKET and SECONDARY MARKET.

Primary Market: It deals with new securities i.e securities which were not previously available and are offered to the investing public for the first time. It is the market for raising the fresh capital in the form of the shares and debentures. It provides the issuing company with additional funds for starting the a new enterprise or for the other expansion of diversification of an existing one and thus its contribution to compant financing is direct. This new offering by the companies are made either as an initial public offering or rights issue