What are the financial instruments in capital market?

What are the financial instruments in capital market?

The main instruments traded in the capital market are – equity shares, debentures, bonds, preference shares etc. The main instruments traded in the money market are short term debt instruments such as T-bills, trade bills reports, commercial paper and certificates of deposit.

What are common capital market instruments?

Ans.: Instruments in capital markets can be classified into three categories: Pure, Hybrid and Derivatives. (1) Pure Instruments : Equity shares, preference shares, debentures and bonds which are issued with the basic characteristics without mixing the features of other instruments are called pure instrument.

What are capital instruments?

Meaning of capital instrument in English a security in the form of shares, bonds, etc. that a company sells to raise the money it needs to operate: Legally, capital instruments are debt and should therefore be disclosed within liabilities.

What are the advantages of capital market?

Well-developed capital markets generate many economic benefits, including higher productivity growth, greater employment opportunities, and improved macroeconomic stability, and a broad sector of other tangible and intangible value-adds.

What are the different types of financial instruments?

Financial instruments may be divided into two types: cash instruments and derivative instruments.

• Cash Instruments.
• Derivative Instruments.
• Debt-Based Financial Instruments.
• Equity-Based Financial Instruments.

  What are the different types of capital market?

  Capital market consists of two types i.e. Primary and Secondary.

  • Primary Market. Primary market is the market for new shares or securities.
  • Secondary Market. Secondary market deals with the exchange of prevailing or previously-issued securities among investors.

    What are the five financial instruments?

    Most financial instruments fall into one or more of the following five categories: money market instruments, debt securities, equity securities, derivative instruments, and foreign exchange instruments.

    Which type of account is capital?

    Capital account is the account of a natural person, i.e. an account of person who is alive. Hence, it can be classified as a personal account.