Stock exchange is known as __________ market for securities.Answer choicesSelect only one optionREVISITPrimary marketSecondary marketCapital marketMoney market

The correct answer to the question "Stock exchange is known as __________ market for securities" is Capital market.

Explanation

The capital market is a segment of the financial market where long-term debt or equity-backed securities are bought and sold. The stock exchange is a critical part of this market, as it facilitates the trading of stocks (equities) and bonds. Unlike the primary market, where securities are created and sold for the first time (such as during an Initial Public Offering), the capital market allows for the trading of these already-issued securities between investors. It differs from the money market, which deals with short-term debt instruments. The secondary market is a component of the capital market where existing securities are traded, but the broader definition that includes equity trading points to the capital market.

Therefore, the stock exchange fits best under the definition of a capital market, as it encompasses the trading of securities over a longer term, essential for capital formation and investment.