The characteristics of the capital market, what are the capital markets involving

Compared with the money market, the main characteristics of the capital market are:

1.Long financing term.

At least more than 1 year, it can be up to several decades, or even no expiration date. For example, medium and long-term bonds have a maturity of more than 1 year; **No expiration date, no expiration date, permanent**; The duration of closed** is generally 15-30 years.

2.Liquidity is relatively poor.

Most of the funds raised in the capital market are used to meet medium and long-term financing needs, so the liquidity and liquidity are relatively weak.

3.The risk is high and the return is high.

Due to the long financing period and the high possibility of major changes, the market is prone to volatility, and investors need to bear greater risks. At the same time, as a reward for risk, the return is also higher.

In the capital market, the main funds are savings banks, insurance companies, trust and investment companies and various individual investors; The capital demand side is mainly enterprises, social groups, ** institutions, etc. Its trading objects are mainly medium and long-term credit instruments, such as **, bonds and so on. The capital market mainly includes the medium and long-term credit market and the ** market.

4. Large amount of capital borrowing.

5. **Large range of changes.

The capital market includes the ** market, the medium and long-term bond market and the **investment market. The funds in the capital market are financial institutions, such as commercial banks, savings banks, life insurance companies, investment companies, trust companies, etc.

Capital market, also known as long-term capital market, is an important part of the financial market. As a theoretical concept corresponding to the money market, the capital market usually refers to the market that conducts medium- and long-term (more than one year) capital (or asset) lending and financing activities. Because in long-term financial activities, it involves a long term of funds, high risks, and long-term stable income, similar to capital investment, so it is called the capital market.

1. The capital market is composed of four sub-markets:

1.** market, its trading instruments mainly include **, bonds, ** and other derivatives**.

2.Loan market, such as medium and long-term mortgage loans, project financing, etc.

3.Equity markets, such as financial**, financial options, etc.

4.Property rights trading market, such as enterprise mergers and acquisitions, asset restructuring, etc.

The capital market refers to the financial asset trading market with a maturity of more than one year. It consists of two parts: the medium and long-term deposit and loan market of banks and the market of price**. As long-term financing has become the development trend of the future, the capital market is now also known as the market.

The main function of the capital market is to facilitate long-term funds. Capital market instruments include **, corporate bonds, long-term ** bonds, and long-term bank loans.

2. Capital market business includes: **, bonds and ** business.

1.**It is a certificate of ownership issued by a joint-stock company, and it is a kind of valuable certificate issued by a joint-stock company to each owner as a certificate of shareholding and to obtain dividends and bonuses in order to raise funds.

2.Bond is a kind of financial contract, which is issued to investors when financial institutions, industrial and commercial enterprises, etc. directly borrow from the society to raise funds, and at the same time promise to pay interest at a certain interest rate and repay the principal according to the agreed conditions.

3.There are broad and narrow senses, and in a broad sense, it refers to a certain amount of money that is set up for a certain purpose. It mainly includes trust investment, provident fund, insurance, retirement, and various wills.

3. The function of the capital market:

1.The capital market is an important channel for raising capital.

2.The capital market is an effective place for the rational allocation of resources.

3.The capital market is conducive to corporate restructuring.

4.Promote the development of the industrial structure in the direction of upgrading.

The capital market mainly refers to the financial market used by enterprises and residents in the ** market and the non-** market to raise funds required for various business activities for a period of more than one year, including the ** market, the property rights trading market and other capital markets.

View Answer Analysis 【Correct Answer】 The main characteristics of the capital market are: The transaction period is long, at least more than 1 year, and up to several decades. The purpose of the transaction is mainly to solve the contradiction between the supply and demand of long-term investment funds and enrich the fixed assets.

A large amount of funds is borrowed to meet the needs of large-scale long-term projects. Valuable as a trading instrument** has a higher yield than short-term financial instruments, but it is illiquid and risky.

Answer Analysis] This question examines the characteristics of the capital market. See textbook p147.

Knowledge points of this question: trading activities in financial markets

The main characteristics of the capital market are: long financing period. At least 1 year or more.

The purpose of financing is to address the need for long-term investment capital, which can be used to replenish long-term capital and expand production capacity. The amount of capital borrowed is large. The benefits are higher, but the risks are also greater.