Practicing Success
Practicing Success
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| When a company needs money, it looked for long-term funds i.e. debt + equity. There was a lot of debate over whether the company should go with debt or stock. Finally, it made the decision to pursue equity. The company’s owner made the decision to follow SEBI requirements. Which financial market is highlighted at the start in this case? |
Money market Stock exchange
SEBI
Capital market
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| Capital market |
| Capital Market is a place where long-term funds are mobilised by the corporate undertakings and Government. Capital Market may be divided into primary market and secondary market. Primary market deals with new securities which were not previously tradable to the public. Secondary market is a place where existing securities are bought and sold. |
