What is capital market

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gidi
Posts: 19
Joined: Fri Jun 25, 2010 2:00 pm

What is capital market

Post by gidi »

When referring to a capital market, it is important to note that the term can refer to a rather broad range of products and services that are associated with finances and investments. To that end, a capital market will include such components as the stock market, commodities exchanges, the bond market, and just about any physical or virtual facility or medium where debt and equity securities can be bought or sold
kiti
Posts: 19
Joined: Sat Jun 26, 2010 3:05 pm

Re: What is capital market

Post by kiti »

Hi

Both the stock and bond markets are parts of the capital markets. For example, when a company conducts an IPO, it is tapping the investing public for capital and is therefore using the capital markets. This is also true when a country's government issues Treasury bonds in the bond market to fund its spending initiatives.

Thanks
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