MODULE: 2WHAT IS A CAPITAL MARKET?

Capital market is a place where buyers and sellers

indulge in trade (buying/selling) of financial securities like bonds, stocks, etc. The trading is
undertaken by participants such as individuals and institutions.Capital market trades mostly in
long-term securities. The magnitude of a nation’s capital markets is directly interconnected to
the size of its economy which means that ripples in one corner can cause major waves
somewhere else.Types of Capital MarketCapital market consists of two types i.e. Primary and
Secondary 2.WHAT ARE MUTUAL FUNDS?A mutual fund is a pool of money managed by a
professional Fund Manager.It is a trust that collects money from a number of investors who
share a common investment objective and invests the same in equities, bonds, money market
instruments and/or other securities.3.What is a Money Market?A market for securities that have
a maturity of less than one year is a money market. The securities in the money market are short
term in nature, highly liquid. A few of the money market instruments are treasury bills, repos,
certificates of deposits, and banker’s acceptances.Types of Money Market InstrumentsFollowing
are the1.Treasury Bills (T-Bills)2.Commercial Papers (CP)3.Bills of Exchange or Commercial
Bills4.Certificate of Deposits (CD)5.Banker’s Acceptance4.What is a Capital Market?A market for
long term investments is the capital market. In other words, when the players in the industry
need funds for a long term horizon, they approach the capital market. The capital market
instruments have a maturity of more than one year. The players in the capital market industry
deal in capital market instruments like shares, bonds, ETFs, debentures, derivatives like futures,
options, and swaps.5.Expand AMFIAssociation of Mutual Funds in India (AMFI) is a non-profit
industry body of the asset management companies (AMCs) of all Mutual Funds in India that are
registered with Securities and Exchange Board of India (SEBI).MODULE : 31.Meaning of Primary