colaws

TO UNDERSTAND CAPITAL MARKET AT FIRST WE HAVE TO UNDERSTAND THE FINANCIAL MARKET OF WHICH THE CAPITAL MARKET IS A PART.. FINANCIAL MARKET : FINANCIAL MARKET CAN BE DESCRIBED AS A PLATFORM THROUGH WHICH SAVINGS OF HOUSEHOLDS CAN BE CONVERTED INTO INVESTMENTS MADE BY PRODUCERS. FINANCIAL MARKET IS A MARKET WHICH DEPLOYS (UTILIZE)  EXCESS FUNDS LYING WITH THE HOUSEHOLDS TO BE CONVERTED INTO INVESTMENTS. FINANCIAL MARKET IS A PHENOMENA TO CHANNELISE THE IDLE SAVINGS OF HOUSEHOLDS BY BRINGING SUCH SAVINGS INTO THE MAIN STREAM OF PRODUCTION.        FINANCIAL MARKET IS FURTHER CATEGORIGED IN TWO TYPES MONEY MARKET:                                       REGULATED BY RBI AND MoF.                                                            i.e                                       RESERVE BANK OF INDIA AND MINISTRY OF FINANCE. IT CAN ONLY PROVIDE SHORT TERM LOANS. (MAX 1 YEAR i.e 365 DAYS) CAPITAL MARKET :