Capital Market is the market for long term financial claim more than a year. (E.g) Shares, Debentures.

Secondary markets allow for the determination of the price of the traded financial asset through the interaction of buyers and sellers. They provide a signal for the allocation of funds in the economy, based on the demand and supply, though the mechanism called price discovery processes.

Organised sector consist of Regulators, Financial Institutions, Financial markets and Financial services.

(i) Secondary market may be defined as the market for old securities, in the sense that securities which are previously issued in the primary market are traded here.
(ii) The trading takes place between investors who follow the original issue in the primary market.
(iii) It covers both stock exchange and over the counter market.

Spot Market	Future Market
Spot market is a market where the delivery of the financial instrument and payment of cash occurs immediately i.e. settlement is completed immediately. It is otherwise called Cash Market	Future market is a market where the delivery of asset and payment of cash takes place at a pre-determined time frame in future. It is otherwise called Forward Market.

A market wherein financial instruments such as financial claims, assets and securities are traded is known as a 'financial market'. In another words, financial markets may be channels through which flow loanable funds directed from a supplier who has an excess of assets toward a demander who experiences a deficit of funds.

Financial markets can be classified in different ways. They are as follows
(i) On the Basis of Type of Financial Claim:
(a) Debt Market : Debt market is the financial market for trading in Debt Instrument (i.e. Government Bonds or Securities, corporate Debentures or Bonds).
(b) Equity Market: Equity market is the financial market for trading in Equity Shares of Companies.
(ii) On the Basis of Maturity of Financial Claim:
(a) Money Market: Money market is the market for short term financial claim (usually one year or less) Example: Treasury Bills, Commercial Paper, Certificates of Deposit
(b) Capital Market: Capital market is the market for long term financial claim more than a year Example: Shares and Debentures
(iii) On the Basis of Time of Issue of Financial Claim:
(a) Primary Market: Primary market is a term used to include all the institutions that are involved in the sale of securities for the first time by the issuers (companies). Here the money from investors goes directly to the issuers.
(b) Secondary Market: Secondary market is the market for securities that are already issued. Stock Exchange is an important institution in the secondary market.
(iv) On the Basis of Timing of Delivery of Financial Claim
(a) Cash/Spot Market : Cash or Sport market is a market where the delivery of the financial instrument and payment of cash occurs immediately. i.e. settlement is completed immediately.
(b) Forward or Futures Market: Forward or futures market is a market where the delivery of asset and payment of cash takes place at a pre-determined time in future.

S.No	Basis of Comparison	New Issue Market	Secondary Market
1.	Meaning	The market place for new shares is called primary market.(Initial Issue Market)	The place where formerly  issued securities are traded is known as Secondary market.(Resale Market)
2	Buying	Direct	Indirect
3.	Financing	It supplies funds to budding enterprises and also to existing companies for expansion and diversification.	It does not provide funding to companies.
4.	Buying and selling between	Company and Investors	Investors
5.	Gained Person	Company	Investors
6	Intermediary	Underwriters	Brokers