Capital market
The
capital market is the
market for long-term loans and
equity capital.
Companies and the
government can raise funds for long-term investments via the capital market. The capital market includes the
stock market, the bond market, and the
primary market.
Securities trading on organized capital markets is monitored by the government; new issues are approved by authorities of
financial supervision and monitored by participating
banks. Thus, organized capital markets are able to guarantee sound
investment opportunities.
See also: Financial market