Financial Market refer to all institutions which help public and private enterprises to raise funds in short term or long term.
It comprises both Money Market and Capital Market.
i) Money Market deals with raising funds for short period of time usually < 1 year.
ii) Capital Market deals with long term funds usually > 1 year.
Capital Market sub-classified as
a) Debt Market in which funds can be raised only by incurring debt. Debt instrument are traded which comprises os assets that requires fixed payments to holders eg. Bonds etc.
b) Equity Market in which funds can be raised without incurring debt.
It comprises both Money Market and Capital Market.
i) Money Market deals with raising funds for short period of time usually < 1 year.
ii) Capital Market deals with long term funds usually > 1 year.
Capital Market sub-classified as
a) Debt Market in which funds can be raised only by incurring debt. Debt instrument are traded which comprises os assets that requires fixed payments to holders eg. Bonds etc.
b) Equity Market in which funds can be raised without incurring debt.
Indian Equity Market
Here funds can be raised by following ways :
i) Initial Public Offering (IPO)
ii) Rights Issue
iii) Private Placement
For getting in to equity market company should be listed in Stock Exchange. Major stock exchange in India are NSE & BSE.
NSE startup in 1992 and started trading from 30th June 1994. It uses NIFTY as indices which is index of stock owned by bt 50 largest and most liquid company.
BSE is the oldest stock exchange and was setup in 1872. It use SENSEX as indices and index of stocks of 30 largest and most liquid company.
