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Define ‘Capital Market'. Explain, by giving any three points, why capital markets are the most important source of raising finance for entrepreneurs. Also give the meaning of ‘Financial Intermediation'.
Define ‘Capital Market'. Explain, by giving any three points, why capital markets are the most important source of raising finance for entrepreneurs. Also give the meaning of ‘Financial Intermediation'.
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Think of the financial system in two parts:
- Capital Market: Facilitates the direct buying and selling of long-term securities.
- Financial Intermediation: Acts as the matching engine, converting household savings into productive corporate investments.
Updated On: Jun 18, 2026
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