WHAT IS CAPITAL MARKET?
The capital market i s the pulse or the heartbeat of the nation's economy. It reflects the underlying performance and strengths of companies operating within the economy.
The capital market is where shares and long-term debt instruments are traded. The capital market is often called the stock market. A stock market is run by stock exchange.
The Capital Market is a vehicle through which companies can raise funds to expand their businesses and satisfy their financial needs.
What happens in the stock market affects every one of us. It is the guage used in measuring the overall performance of the economy. If you are an insurance policyholder or a contribut or to pension fund, what happensOn the stock exchange affects you because insurance and pension funds managers invest your contributions in the stock market via the Stock Exchange.

A COMPANY
An individual who decides to engage in some form of business activity could provide all the money required for the business. That business would be called a sole proprietorship.
If he decides to pool funds with other people to fund the business, the business is jointly owned by them and the liability of each contributor is limited to the amount he contributed to the business, the business is called a limited liability, or joint stock, company.
Each person's contribution is divided into units called shares (for easy transferability) and the owner is a shareholder.
The stock market allows a shareholder to divest from a company without collecting his money back from the company. He collects money from another person interested in becoming a shareholder in the company.
A company could be public or private. A public company has more than 50 shareholders. A public company could be quoted or unquoted.

WHAT IS STOCK EXCHANGE?
A stock Exchange provides a market which facilitates the buying and selling of shares of quoted companies. This creates the much-needed liquidity in the stock market. There are both small and big investors who buy and sell shares.

WHICH MARKET IS PRIMARY MARKET?
The primary market is the market for new or fresh issue of shares to the investing public. Before securities can be offered to the public, the issuer must obtain approval from the Securities and Exchange Commission (SEC) which is the apex regulatory body of the Capital Market.The proceeds from shares sold to the public go to the company if it's an offer for subscription but to the existing (usually large) shareholder if it is an offer for sale CONTINUE >>