Capital market

A market for buy and selling securities (debt or equity) to raise long term funds. Generally business organizations and government raise funds from the capital market (e.g. stock exchange). Capital market usually works with the securities like shares, debenture, bonds, certificates etc to raise long term funds as opposed to money market where funds are raised for short period of time

Capital markets have two main types primary markets and secondary markets (second hand securities market). The main difference between these markets is new stock is issued to investor in primary market and second hand stock is issued in secondary markets

Capital market is overseen by a government institution (called SEC) to prevent fraud and mismanagement

Different capital markets:


Stock exchange
To buy and sell stock of companies and government
The gilt (or gilt-edged) market
Market for government long term debt securities
Commercial banks
Issue medium and long term loans and securities to individuals and firms
National saving 
Government borrow funds from private investors