What are the main functions performed by capital market in the economy?

What are the main functions performed by capital market in the economy? 

Ans. Following functions are performed by capital market: 

(a) It helps in better decision-making through proper information processing and dissemination; 

(b) It helps in quick valuation of securities–both debt and equity; 

(c) It helps in increasing operational efficiency by lowering search cost and transportation costs of transaction procedure; 

(d) It helps in developing an integration between different sectors of an economy; 

(e) It helps in proper flow of funds into efficient channels through proper investment.