Capital Market: Introduction And Law

Abstract

A capital market can be either a primary market or a secondary market. Modern capital markets are almost used and hosted on computer-based electronic commercial platforms; most can be accessed only by the institutions of  departments of governments and corporations, but some can be accessed directly by the public.  The most of the market can only be accessible by the Institutions within the financial sector of the government either by the central or the state government. The main entities seeking to raise long-term funds on the primary capital markets are governments and business enterprise. Governments issue only bonds, whereas companies often issue both equity and bonds. The main institutions purchasing the bonds and government bond. In the secondary market, existing securities are sold and bought among investors or traders, usually on an exchange, over-the-counter, or elsewhere. The main institutions seeks to raise long term funds on the primary capital markets are governments.  In Secondary markets, the securities existing are sold and bought among the investors and traders. The willingness of investors of primary market increases existence of Secondary markets.