Role of Capital Market in Economic Development

ROLE OF CAPITAL MARKET IN ECONOMIC

DEVELOPMENTPRANJAL SHAHROLL NO-146

SY BBA

Capital market is the market for securities and It gives fund for securities for more than a year.

Stock, Bond, Currency and Commodity are coming under the capital market.

WHAT IS CAPITAL MARKET?

1.     Mobilization of Savings 

2.     Capital Formation

3.     Provision of Investment Avenue

4.     Speed up Economic Growth and development

FUNCTIONS OF CAPITAL MARKET

-Provides an important alternative source of long-term finance for long-term productive investments.

-Provides equity capital and infrastructure development capital that has strong socio-economic benefits.

-Provides avenues for investment opportunities. -Promotes public-private sector partnerships to

encourage participation of private sector in productive investments.

-Improves the efficiency of capital allocation.

ROLE OF CAPITAL MARKET IN THE ECONOMY