What are The Most Common Instruments Traded in The Capital Market?

Also called the Securities Market, Capital market refers to a market where the funds from the investors are diverted to the companies and public institutions for development and other objectives. Likewise, if a business is looking for money to expand its operations, it can choose to issue shares in the stock market and investors who wish to invest in that business can buy the shares of the company. 

In this article we will discuss the importance of capital market and what are the most common instruments traded in the capital market.

The capital market can be bifurcated into two segments – primary and secondary. The primary capital market is where firms release stocks in the initial time, and a secondary market is the one which primarily deals in the trading of outdate or existing securities.

Capital market instruments refer to the documents or certificates that act as an investment proof. There are several instruments traded in the capital market. According to the best stock broker in India, “Most investors can invest their money in these instruments either in the primary (IPO) or secondary market”.

Source - https://www.technooweb.com/what-are-the-most-common-instruments-traded-in-the-capital-market/