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Capital market refers to a financial market where individuals and institutions buy and sell long-term financial securities such as equity (stocks), bonds, commercial paper, and other investment instruments. The main objective of the capital market is to raise funds for businesses, governments, and other organizations that require long-term funding.

A dividend is a portion of a company’s profits that is paid out to shareholders on a regular basis. A company’s dividend is decided by its board of directors, and it requires the shareholders’ approval. However, it is not obligatory for a company to pay dividend. Dividend is usually a part of the profit that the company shares with its shareholders.

Equity (stocks) and bonds are both financial instruments used by companies and governments to raise money from investors. However, equity represent ownership in a company, while bonds represent a loan to a company or government entity.

The time it takes for a trade to be executed varies depending on market conditions and the type of order placed, in general, this period ranges from 1 – 30 days.