Rishabha Singh(11PGDM088) Ritesh Kacchap(11PGDM089) Rishabh Pandey(11PGDM087) Rahul Dubey(11PGDM083) Vishal Singh(11PGDM120)

Capital markets are markets where people, companies, and governments with more funds than they need (because they save some of their income) transfer those funds to people, companies, or governments who have a shortage of funds (because they spend more than their income).

Primary markets: The primary market is where new securities are issued. The corporation or government agency that needs funds issues securities to purchasers in the primary market. Secondary market: The secondary market includes stock exchanges ,bond markets, and futures and options markets, among others.

The term "securities" encompasses a broad range of investment instruments. Investors have essentially two broad categories of securities available to them: Equity securities (which represent ownership of a part of a company). Debt securities (which represent a loan from the investor to a company or government entity).

The capital market serves as an important source for the productive use of economys savings. It provides incentives to saving and facilitates capital formation by offering suitable rates of interest as the price of capital. A healthy capital market consisting of expert intermediaries promotes stability in values of securities representing capital funds. It serves as an important source for technological up gradation in the industrial sector by utilizing the funds invested by the public.

Sources of Capital

Private sources

Public Sources

Foreign direct investment(FDI). Portfolio investment (both debt and equity flows).

Official non-concessional loans of both multilateral and bilateral aid . Official development assistance (ODA).

Bonds are debt. They are debt because when an investor buys a bond they are effectively loaning the bonds issuer a sum of money and that issuer is incurring a debt.
LOAN DEBT

Bond Issuer seller/Borrower.

Bond Investor Lender/Buyer.

The Securities Industry and Financial Markets Association classifies the broader bond market into five specific bond markets:

Corporate.
Government & Agency. Municipal. Mortgage Backed, Asset Backed. Funding.

Participants include:

Governments. Institutional investors. Traders. Individuals.

Fixed rate bonds.

High yield bonds.

Zero coupon bonds.

Asset-backed securities. Subordinated bonds. Perpetual bonds. Registered bond.

THANK YOU