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

Money market is the market for short term financial claim. (E.g) Treasury Bills, Commercial paper, Certificates of Deposit.

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.

Equity Market is the financial market for trading in Equity Shares of Companies.

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

Financial assets can be classified differently under different circumstances. One such classification is :
(i) Marketable assets
(ii) Non-marketable assets
(I) Marketable Assets:
(a) Marketable assets are those which can be easily transferred from one person to another without much hindrance:
(b) Example: Shares of Listed companies, Government securities, Bonds of Public sector undertakings etc.
(ii) Non marketable Assets:
(a) If the assets cannot be transferred easily, they come under this category.
(b) Example: Bank deposits, Provident funds, Pension funds, National savings Certificates, Insurance policies etc.

(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.

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.

One of the important requisites for the accelerated development of an economy is the existence of a dynamic and a resilient financial market. A financial market is of great use for a country as it helps the economy in the following manner.
(i) Savings Mobilization:
Obtaining funds from the savers or surplus units such as household individuals, business firms, public sector units.Government is an important role played by financial markets.
(ii) Investment:
Financial market plays a key role in arranging the investment of funds thus collected, in those units which are in need of the same.
(iii) National Growth:
 Financial markets contribute to a nation's growth by ensuring an unfettered flow of surplus funds to deficit units.Flow of funds for productive purposes is also made possible. It leads to overall economic growth.
(iv) Entrepreneurship Growth:
Financial markets contribute to the development of the entrepreneurial class by making available the necessary financial resources.
(v) Industrial Development:
The different components of financial markets help an accelerated growth of industrial and economic development of a country and thus contributing to raising the standard of living and the society's well-being.

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

(d) Money market
Reason : Money market is the market for short term financial claim. Other three are functions of financial markets.

(c) Capital market - Sock exchange

(a) Both (A) and (R) are true and (R) is the correct explanation of (A).

(a) Both (A) and (R) are true and (R) is the correct explanation of (A).

(d) (i), (ii) and (iii) are correct

(d) (i), (ii) and (iii) are correct