18/06/2015

WhatisCapitalMarket?Meaning,FunctionsandRole

SUBSCRIBERSSFEED

ARTICLES

COMMENTS

KALYANCITYLIFE

Search

SharingWisdomandVividMemoriesofLife

ABOUT

TEAM

KalyanCityisafastemergingresidentialtownship
intheThanedistrictofMaharashtrastate,India.Itis
acentralsuburbantownandresides54kmnorth
east of Mumbai. This blog regularly shares quality
academic materials. Here we also document our
unique experiences and vivid memories of life.
Read our lucid, informative articles to excel your
understanding,knowledgeandsuccess.

Articles published on Kalyan City Life blog

is inspired by our work experience, field
research, study of various good books and
papers, seminars and consultations from
subject scholars. Our unique collection of
usefulstudynotesisanoutcomeofateam
effortandhardworkofGauravAkrani,Prof.
MuditKatyaniandManojPatil.

HOME

ARTICLES
AdsbyGoogle

PHOTOS

VIDEOS

CapitalMarket

DISCLAIMER

NetBanking

WhatisCapitalMarket?
Meaning,FunctionsandRole
Post:GauravAkrani.
Date:9/23/201001:06:00PMIST.
NoComments.
Label:Economics,StudyNotes.

MutualFunds

NEWCOMMENTS

PRIVACY

CONTACT

FinancialMarkets

FEATURED

Hisir..insep2014myhairline
wasverynicease...

WorldsTop10MostPoisonous
VenomousDeadliestSnakes

accordingtome,staffingis
concernwiththewhol...

BalayamNailRubbingExercise
CuresAlopecia,HairLoss,Bald

Basicallymostofthetaxsystems
aredivertingfr...

WhatisCreditCard?Meaning
DefinitionSizeAnatomyGlossary
DifferenceBetweenPrimaryand
SecondaryData

NEWARTICLES
DifferenceBetweenListening
andHearingwithExamples
http://kalyancity.blogspot.com/2010/09/whatiscapitalmarketmeaning.html

TopInventionsandDiscoveries
byScientistsAtoZListScience
StagesinEvolutionofBusiness
fromLocaltoGlobal
1/7

18/06/2015

WhatisCapitalMarket?Meaning,FunctionsandRole

MeaningandDefinitionof
HumanRelations

HowtoImproveHuman
Relations?

FiveEssentialsofHuman
Relations

HowToPrepareForSuccessful
JobInterviews?BestInterviewTips

FourteenProvenWaysto
ImproveHumanRelations

HowToSummarizePassage?
SummarizationSkillsTechniques
BasicPrinciplesofInsurance
ExamplesofInsurancePrinciples

AdsbyGoogle

InStockMeaning
BusinessCapital
FinancialFunds

IndianMoneyMarketFeatures,
DrawbacksandRecentReforms

ConceptofMarketingResearch
(MR)MarketingResearchProcess

MeaningandConceptofCapitalMarket
CapitalMarketisoneofthesignificantaspectofeveryfinancialmarket.Hence
it is necessary to study its correct meaning. Broadly speaking the capital
marketisamarketforfinancialassetswhichhavealongorindefinitematurity.
Unlike money market instruments the capital market intruments become
mature for the period above one year. It is an institutional arrangement to
borrow and lend money for a longer period of time. It consists of financial
institutions like IDBI, ICICI, UTI, LIC, etc. These institutions play the role of
lendersinthecapitalmarket.Businessunitsandcorporatearetheborrowers
inthecapitalmarket.Capitalmarketinvolvesvariousinstrumentswhichcan
beusedforfinancialtransactions.Capitalmarketprovideslongtermdebtand
equity finance for the government and the corporate sector. Capital market
canbeclassifiedintoprimaryandsecondarymarkets.Theprimarymarketisa
market for new shares, where as in the secondary market the existing
securities are traded. Capital market institutions provide rupee loans,
FOREIGNEXCHANGE

loans,consultancyservicesandunderwriting.

MANAGEMENT
ManagementFunctionsAnd
Process,ManagementThought
PlanningFirstPrimaryImportant
FunctionOfManagement
ManagementByObjectives
(MBO)PeterDruckerMBO
DecisionMakingProcessIn
ManagementProblemSolving
Authority,Responsibilityand
AccountabilityInManagement
PrincipleofDelegationof
AuthorityImportanceofDelegation
OrganisationOrganizational
StructureOrganisationalChart
DecentralisationAdvantages
andLimitationsofDecentralization
ManagerialLeadershipLeader

http://kalyancity.blogspot.com/2010/09/whatiscapitalmarketmeaning.html

2/7

18/06/2015

WhatisCapitalMarket?Meaning,FunctionsandRole

QualitiesLeadershipTheories
HumanResourceManagement
HumanResourceDevelopment
MotivationMotivationalFactors
IncentivesTheoriesofMotivation
Maslow'sHierarchyofNeeds
TheTheoryofHumanMotivation
FrederickHerzberg'sTwoFactor
TheoryMotivationHygiene
Factors
DouglasMcGregor'sTheoryX
andTheoryYEmployee
Motivation
DavidMcClelland'sAchievement
Motivation,ManifestNeedTheory
MarketingMixand4P'sofThe
MarketingManagementArticle

Significance,RoleorFunctionsofCapitalMarket

WhatisMarketSegmentation?
ImportanceInModernMarketing

Like the money market capital market is also very important. It plays a
significant role in the national economy. A developed, dynamic and vibrant

5M'sofAdvertisingFeaturesof
TheAdvertisingManagement

capital market can immensely contribute for speedy economic growth and
development.

QualityControlTotalQuality
ManagementTQMQualityCircles
Let us get acquainted with the important functions and role of the capital
market.

BANKING

1.MobilizationofSavings:Capitalmarketisanimportantsourcefor
mobilizingidlesavingsfromtheeconomy.Itmobilizesfundsfrompeople
forfurther INVESTMENTS

intheproductivechannelsofaneconomy.In

thatsenseitactivatetheidealmonetaryresourcesandputstheminproper
investments.
2.CapitalFormation:Capital MARKETHELPS

incapitalformation.

Capitalformationisnetadditiontotheexistingstockofcapitalinthe
economy.Throughmobilizationofidealresourcesitgeneratessavingsthe
http://kalyancity.blogspot.com/2010/09/whatiscapitalmarketmeaning.html

WhatisaBank?Introduction,
DefinitionandFeaturesofBank
DifferentTypesofBanksWhat
areVariousKindsofBanks?
CommercialBanksDefinitions,
PrimarySecondaryFunctions
3/7

18/06/2015

WhatisCapitalMarket?Meaning,FunctionsandRole

mobilizedsavingsaremadeavailabletovarioussegmentssuchas

AdsbyGoogle

agriculture,industry,etc.Thishelpsinincreasingcapitalformation.

FinancialFunds
FinancialBanks
USStockMarket

3.ProvisionofInvestmentAvenue:Capitalmarketraisesresourcesfor
longerperiodsoftime.Thusitprovidesan INVESTMENT
peoplewhowishto INVEST

avenuefor

resourcesforalongperiodoftime.It

providessuitableinterestratereturnsalsotoinvestors.Instrumentssuchas
bonds,equities,unitsofmutualfunds,insurancepolicies,etc.definitely
providesdiverseinvestmentavenueforthepublic.
4.SpeedupEconomicGrowthandDevelopment:Capitalmarket
enhancesproductionandproductivityinthenationaleconomy.Asitmakes

CATEGORY
AdministrativeLaw

fundsavailableforlongperiodoftime,thefinancialrequirementsof

Advertising

businesshousesaremetbythecapitalmarket.Ithelpsinresearchand

Banking

development.Thishelpsin,increasingproductionandproductivityin
economybygenerationof EMPLOYMENT

anddevelopmentof

Blogger

infrastructure.

BusinessDevelopment

5.ProperRegulationofFunds:Capitalmarketsnotonlyhelpsinfund

CommunicationSkills

mobilization,butitalsohelpsinproperallocationoftheseresources.Itcan

DistinguishBetween

haveregulationovertheresourcessothatitcandirectfundsinaqualitative
manner.

Economics
Education

6.ServiceProvision:Asanimportantfinancialsetupcapitalmarket
providesvarioustypesofservices.Itincludeslongtermandmediumterm

Finance

loanstoindustry,underwritingservices,consultancyservices,export

IndustrialPsychology

finance,etc.Theseserviceshelpthemanufacturingsectorinalarge

KalyanCity

spectrum.

Management

7.ContinuousAvailabilityofFunds:Capitalmarketisplacewherethe
investmentavenueiscontinuouslyavailableforlongterminvestment.This

MarketingResearch

isaliquidmarketasitmakesfundavailableoncontinuesbasis.Both

Photos

buyersandsellercaneasilybuyandsellsecuritiesastheyare

ProductionPlanning

continuouslyavailable.Basicallycapitalmarkettransactionsarerelatedto
the STOCKEXCHANGES

.Thusmarketabilityinthecapitalmarket

becomeseasy.
Thesearetheimportantfunctionsofthecapitalmarket.
http://kalyancity.blogspot.com/2010/09/whatiscapitalmarketmeaning.html

Snakes

BalanceSheetofCommercial
BankLiabilitiesandAssets
HowtoOpenBankAccount?7
StepsToOpenBankAccount

WhataretheAdvantagesof
OpeningBankAccount?
SavingAccountBankMeaning,
FeaturesandAdvantagesofIt
FixedDepositAccountofBank
Meaning,Features,Advantages
WhatisCurrentBankAccount?
ItsFeaturesandAdvantages
RecurringDepositAccountIn
BankMeaningandFeatures
WhatisaCheque?Definition
KindsandTypesofCheques
WhatareFeaturesofCheques?
MainCharacteristicsofChecks
WhatisCrossingofCheque?
DifferentTypesofCheckCrossing
AutomatedTellerMachine(ATM)
TheAdvantagesofATMMachine
EBankingOnlineBanking
MainAdvantagesofEBanking
PrinciplesofGoodLending
EveryBankerFollowsLoans
DifferentFormsofAdvancesby
CommercialBanksLoanTypes
DutiesandResponsibilitiesof
ComputerOperatorinBank
NationalisationofBanksinIndia
IntroductionObjectivesDemerits
NarasimhamCommitteeReportI
4/7

18/06/2015

WhatisCapitalMarket?Meaning,FunctionsandRole

1991II1998Recommendations

FinalGlanceandConclusiononCapitalMarket

FINANCE

The lack of an advanced and vibrant capital market can lead to

underutilization of financial resources. The developed capital market also
provides access to the foreign capital for domestic industry. Thus capital
market definitely plays a constructive role in the over all development of an
economy.

WhatisFinance?Meaning
DefinitionFeaturesofFinance

NewEconomicReformsofthe
BankingSectorInIndiaBrief
FunctionsofReserveBankof
India(RBI)CreditPolicyofRBI

WhatisFinancialPlanning?
MeaningTypesofFinancialPlans
WhatisFinancialManagement?
MeaningDefinitionScopeArticles
WhatisCorporateFinance?
MeaningWhatitIncludes?
WhatisCreditRating?Meaning
andArticlesonCreditRating

Search

Related

http://kalyancity.blogspot.com/2010/09/whatiscapitalmarketmeaning.html

5/7

18/06/2015

WhatisCapitalMarket?Meaning,FunctionsandRole

IntroductionTo
Managerial
EconomicsIndian
Economics1

Organizational
StructureofIndian
CapitalMarket
Chart

Reforms
Developments
IndianCapital
MarketSEBI
Functions

Linkwithin

WhatisCapitalMarket?Meaning,FunctionsandRole
FeedofKalyanCityLifeBlog

Translation

NoCommentYet
PleaseComment

http://kalyancity.blogspot.com/2010/09/whatiscapitalmarketmeaning.html

6/7

18/06/2015

WhatisCapitalMarket?Meaning,FunctionsandRole

Enteryourcomment...

Commentas:

Publish

GoogleAccount

Preview

NewerPosts

Home

OlderPosts

2015KalyanCityLifeBlog.
BestviewedonandoptimizedforlatestGoogleChromeBrowser.

http://kalyancity.blogspot.com/2010/09/whatiscapitalmarketmeaning.html

7/7