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What is the definition of Capital Markets?

WE ANSWER:

Capital Markets are the venue by which debt and equities are traded.

It refers to the financial market that connects investors and savers with borrowers and investees. These mainly trade in long-term debt and financial instruments such as stocks, notes and bonds. Depository institutions (such as insurance companies, banks, and credit unions) as well as savers provide the capital for borrowers and use securities to guarantee the payment of their principal plus the interest. Brokers and dealers facilitate in the trading of securities.

The capital market is made up of the money market, the stock market and the bond market. It is highly decentralized.

Examples of capital markets are the New York Stock Exchange, the American Stock Exchange and the regional stock exchanges.

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