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Question
What are the various kinds of Capital Market? Explain.
Solution
- Primary Market:
- Primary Market is a market for new issues or new financial claims.
- Hence it is also called New Issues Market (NIM)
- It deals with those securities which are issued to the public for the first time.
- Secondary Market:
- It may be defined as the market for old (second-hand) securities, in the sense that securities that are previously issued in the primary market are traded here.
- It covers both the stock Exchange and the counter market.
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