What is Capital Market?

A. These are financial markets that bring buyers and sellers together to trade stocks, bonds, currencies, and other financial assets

B. This is the market wherein the trading of securities is done. It consists of both equity as well as debt markets.

C. It refers to trading in very short-term debt investments

D. It is referred to space, where selling and buying of financial assets and securities take place.

Detailed solution: 

The correct answer is Capital markets are financial markets that bring buyers and sellers together to trade stocks, bonds, currencies, and other financial assets.

Key Points: 

• Capital markets are financial markets that bring buyers and sellers together to trade stocks, bonds, currencies, and other financial assets.
• Capital markets are where savings and investments are channeled between suppliers and those in need.
• Suppliers are people or institutions with capital to lend or invest and typically include banks and investors.
• Those who seek capital in this market are businesses, governments, and individuals. Capital markets are composed of primary and secondary markets.
• Capital markets are used to sell different financial instruments, including equities and debt securities.
• These markets are divided into two categories: primary and secondary markets.
• The best-known capital markets include the stock market and the bond markets.