A capital market is a market in which large amount of money can be invested or borrowed for medium and long periods. In a capital market, investors can invest their surplus funds so as to earn the best possible return. They can invest their money in share, debentures, government securities and other financial instruments.
Functions of Capital Market :
(i) Capital market is a forum which facilitates the flow of capital from investors to borrowers.
(ii) Capital market serves as a market where securities can be bought and sold.