What are the features of money market and capital market?
Top 10 Differences between Money Market and Capital Market
| Money Market | Capital Market |
|---|---|
| Purpose served | |
| To achieve short term credit requirements of the trade. | To achieve long term credit requirements of the trade. |
| Functions served | |
| Increasing liquidity of funds in the economy | Stabilising economy by increase in savings |
What are the key features which differentiate money market instruments from capital market instruments?
Money markets are used for short-term lending or borrowing usually the assets are held for one year or less whereas, Capital Markets are used for long-term securities they have a direct or indirect impact on the capital.
What are the instruments of capital market in India?
Beginners guide to access the Indian Capital Market
| Sr. No. | Instrument |
|---|---|
| 1. | Equity Shares |
| 2. | Debentures, Bonds and Corporate Deposits |
| 3. | Mutual Funds |
| 4. | Government Securities |
What are the features of capital?
Capital has several important characteristics that are as follows:
- Capital is a Passive Factor. Capital is a passive factor of production.
- Capital is Man-Made.
- Capital is not Indispensable.
- Capital has high mobility.
- Capital is Elastic.
- Capital Depreciates.
- Capital is Productive.
- Capital is Temporary in Nature.
Which of the following is the features of capital market?
Some of the main features of a Capital Market are as follows: Capital market is a market for medium and long term funds. The common instruments used in capital market are shares, debentures, bonds, mutual funds, public deposits etc.
What are the functions of capital market?
Functions of Capital Market: Facilitates the movement of capital to be used more profitability and productively to boost the national income. Boosts economic growth. Mobilization of savings to finance long term investment. Facilitates trading of securities.
What is capital market and instruments of capital market?
Capital market which is also known as the securities market is a trading market that garners capital from the investors and makes them available to companies and the government for development of projects. The capital market consists of development bank, commercial banks and stock exchanges.
What are features of capital in economics?
Capital is defined as “All those man-made goods which are used in further production of wealth.” Thus, capital is a man-made resource of production. Machinery, tools and equipment of all kinds, buildings, railways and all means of transport and communication, raw materials, etc., are included in capital.
What are functions of a capital market?
What are the unique features of equity shares as a capital market instruments?
Equity shares are liquid in nature and can be sold easily in the capital market. The dividend rate is higher for the equity shareholders when the company earns high profits. The equity shareholders have the right to control the company’s management.
What are the different types of capital market instruments?
Capital market instruments used for market trade include stocks and bonds, treasury bills, foreign exchange, fixed deposits, debentures, etc. As they involve debts and equity securities, the instruments are also called securities, and the market is referred to as securities market.
What are the different capital market instrument?
Types of Capital Market Instruments The various capital market instruments used by corporate entities for raising resources are as follows: 1. Preference shares 2. Equity shares 3. Non-voting equity shares 4. Cumulative convertible preference shares 5. Company fixed deposits 6. Warrants 7.
What is an example of a capital market instrument?
The financial instruments used in capital markets include stocks and bonds, but the instruments used in the money markets include deposits, collateral loans, acceptances, and bills of exchange. Institutions operating in money markets are central banks, commercial banks, and acceptance houses, among others.
What are the different types of capital market products?
Equity securities