📘 Course Description – Capital Market Fundamentals

This course introduces learners to the fundamentals of the capital market, its structure, instruments, and key participants, forming the backbone of any developing economy. Through well-structured modules, students will gain a foundational understanding of how capital flows in an economy through financial institutions, instruments, and markets.

📗 Lesson 1 – Basics of Capital Market

Capital is a crucial factor of production in any economy. A well-structured financial system ensures efficient capital formation through savings, investments, and financing mechanisms. Savings depend on individual earnings or organizational profits and serve as the backbone of investment activity.

This lesson explains the financial system as an interconnected framework of institutions, agents, markets, and instruments. These components operate together to fuel economic growth within national boundaries.

Key Concepts Covered:

• 📊 The Financial System in India

• 🏛️ Structure of Financial Market in India

• 💹 Capital Market Instruments

• 👥 Key Participants of the Capital Market

• 🔁 Relationship between savings, investments, and capital formation

Financial institutions, such as banks and investment firms, play a critical role by channeling capital to corporations. These corporations, in turn, raise funds through equity or debt issuance. Investment banks act as intermediaries, aligning risk profiles and investment styles of both parties.