Discuss the structure of capital market in detail

                                                                                                                              

MBA

Business Environment

ASSIGNMENT

 

Course Code: MMPC-003

Assignment Code: MMPC-003/TMA/JULY/2022 

Coverage : All Blocks

3. Discuss the structure of capital market in detail

The capital market is a financial market that deals with the buying and selling of long-term debt and equity instruments, such as stocks, bonds, and other securities. It is an important source of financing for businesses, governments, and other organizations that require large amounts of capital to finance their operations or invest in new projects. The structure of the capital market can be divided into several key components, which are discussed in detail below. 

Primary Market 

The primary market is where new securities are issued and sold to the public for the first time. This is typically done through an initial public offering (IPO), where a company offers shares of its stock to the public in order to raise capital. The primary market is also used for the issuance of bonds and other debt securities. In the primary market, the issuer receives the proceeds from the sale of the securities, which can be used to finance new projects or expand existing operations.

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