(i) Secondary market may be defined as the market for old securities.
(ii) The trading takes place between investors who follow the original issue in the primary market.

(i) Capital Markets makes possible to generate foreign capital.
(ii) Indian firms are able to generate capital funds from overseas markets by way of bond and other securities

(i) Derivatives market facilitates the trading in financial instruments such as futures contracts and options used to help control financial risk.
(ii) The instruments derive their value mostly from the value of an underlying asset that can come in many forms - stocks, bonds, commodities, currencies or mortgages.

SEBI means securities and Exchange Board of India. SEBI emerged as an effective regulatory body for the primary and secondary markets and afford a measure of protection to small investors.

The most common method of raising capital by new companies is through sale of securities to the public. It is called public issue.

According to Arun K. Datta, capital market may be defined as "a complex of institutions investment and practices with established links between the demand for and supply of different types of capital gains".

The dealings in a capital markets are done through the securities like shares, debentures, etc. The capital market is thus called as securities market.