Capital market is a market for medium and long term funds. It includes all the organisations, institutions and instruments that provide long term and medium term funds. It does not include the institution which provide finance for short period. The common instrument used in capital markets are shares, debentures, mutual funds, public deposits etc.
Capital market may be defined as in organised magnus meant for effective and smooth transfer of money capital of financial resources from the investor to the entrepreneurs. Capital market are the most important source of raising finance for the entrepreneurs.
