Sachin Karpe tells the ‘How to’ of Capital Market for novices

Sachin Karpe is a Financial Expert and is a known analyst in the circle.

The Capital Market is one of the three conservative markets in the economic system of a country. Other than this the other two are the currency and insurance market. The currency market provides short-term investible finances; the capital market presents long-term facilities while the insurance market tunes the two to achieve a steady and a strong financial system. Sachin Karpe states that there is no special definition of "short-term" or "long-term" but the customary maturity of long-tem debts is a year and frequently more than five years while short-term debts last for nearly a calendar year. This article leans towards focusing on the overview of the capital markets for novices or those who are planning to start investing.

The Capital Market has two major fragments viz: Primary and Secondary markets.

Primary Market is the market for Initial Public Offer and new matters of securities. New funds are raised in the primary market whether it is IPO or just a new matter.

Secondary market is the section where security holders dispose off their holdings and the earnings from the sales go to the entity and not the business issuers of the securities. In simple terms it is a resale market. And lastly says Sachin Karpe, ‘To work efficiently, markets need a free flow of information. Without which investors cannot keep abreast of progress or estimate, to the best of their ability, the true value of stocks. Numerous sources of information facilitate investors to pursue the fortunes of the market on a daily, hourly, or even minute-by-minute basis’.