- Explain the stock market, bond market, capital market and
money market
STOCK MARKET
It is a collection of markets where publicly held companies issue their shares and the participants of the stock market purchases and/or sells these shares. These activities are conducted through institutionalized formal exchanges or over the counter marketplaces that function as per a defined set of regulations.
Terms like stock exchange and stock market are used interchangeably. If one says that they trade in the stock market, it means that they sells and/or buys shares on one or more of the stock exchange that are a part of the overall stock market.
BOND MARKET
Bond market also known as the debt market, fixed income market or credit market is a marketplace where trade and issue of debt securities take place. Bonds are typically issued by government in order to raise capital to pay debts or fund infrastructural improvements. Public companies issue bond when they need to finance business expansion projects or maintain ongoing operations.
Step by step
Solved in 2 steps
