Organized Market

Capital Market`

• Definition: Refers to the segment of the financial market where long-term financial instruments are traded.
• Maturity: Typically refers to financial assets with a maturity period of more than one year.
• Key Characteristics:
  • Long-term securities: Deals with long-term securities such as:
    • Stocks: Represent ownership in a company.
    • Bonds: Debt instruments issued by governments and corporations.
    • Long-term loans: Mortgages, long-term corporate loans.
  • Focus on long-term investments: Facilitates long-term investments for businesses, governments, and individuals.
  • Higher risk: Generally associated with higher risk compared to money market instruments.

Note:

• While "long-term" generally refers to maturities exceeding one year, the specific definition can vary depending on the context.

This definition clarifies that the capital market deals with long-term financial assets with a maturity period typically exceeding one year.