Financial Market and Stock Exchange Vocabulary

Vocabulary flashcards defining key financial market concepts and stock exchange functions based on the provided text.

Capital Market

A market for long term funds and fixed capital.

Primary Market

The new issue market that directly contributes for capital formation.

Secondary Market

A market for second hand securities, such as a stock exchange, that indirectly contributes for capital formation.

Stock Exchange

Defined by the Securities Contract and Regulation Act as an organisation body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling of business in buying, selling and dealing in securities.

Economic Barometer

A function of the stock exchange where it serves as a reliable barometer to measure the economic condition of a country, as every major change in the country and economy is reflected in the prices of shares.