Question

    A type of market where debt and stocks are traded and

    maturity period is more than a year is known as
    A Equity markets Correct Answer Incorrect Answer
    B Capital markets Correct Answer Incorrect Answer
    C Repo market Correct Answer Incorrect Answer
    D Money market Correct Answer Incorrect Answer

    Solution

    Capital Market is the market where long term instruments are issued and traded. A long term instrument is one that has a maturity period of greater than one year. In the capital market, both equity and debt instruments, such as equity shares, preference shares, debentures, zero-coupon bonds, secured premium notes and the like are issued (primary market) and traded (secondary market).

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