Explain the functions of capital market?

Answer 1

The capital markets provide an opportunity for companies to sell shares in order to raise money from a larger public source. Anyone is open to buy shares of a company through the capital markets.

Answer 2

1. Raise capital for industry

2. Provide liquidity for financial instruments that trade in a secondary market

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A capital market is a market for securities, where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets (e.g., the money market).