Following are the nature/characteristic of a capital market:
1. Securities Market: The dealings in a capital market are done through the securities like shares, debentures, etc. The capital market is thus called securities market.
2. Price: The price of the securities is determined based on the demand and supply prevailing in the capital market for securities.
3. Participants: There are many players in the capital market. The participants of the capital market include individuals, corporate sectors, Govt., banks and other financial institutions.
4. Location: Capital market is not confined to certain specific locations, although it is true that parts of the market are concentrated in certain well-known centers known as Stock Exchanges.
It has its impact in the overall economy, wherever suppliers and users of capital get together and do business.
5. Market for Financial Assets: Capital market provides a transaction platform for long term financial assets.
