Based on following case study, answer the question.

Financial Market are classified on the basis of the maturity of financial Instruments traded in them. Instruments with a maturity of less than one year are traded in money market while instruments with longer maturity are traded in Capital market. Instruments with a maturity of short term/ period upto one year are close substitutes for money. While long term funds market, direct savings of the community into their most productive use leading to growth and development of the economy.

Select the market in which shares are traded :

Capital Market

The correct answer is option (1) : Capital Market

Shares are traded in the:

(1) Capital Market

Shares represent ownership in a company and are considered long-term financial instruments. As mentioned in the case study, instruments with longer maturity are traded in the capital market. Money market deals with short-term financial instruments, and shares typically have a longer investment horizon, so they are part of the capital market.