Capital Markets

Capital Markets Meaning:
In stock market terminology, the term Capital Markets refers to markets where all financial instruments like stocks and bonds, as well as commodities and currencies are traded.

Capital Markets Example:
For example, virtually all financial transactions involving equities, commodities and currencies are executed in the Capital Markets. Capital Markets include the Over-the-Counter markets, as well as all exchange traded and electronic markets. Examples of the Capital Markets include: the Stock Market, the Bond Market, the Commodities Market, the Futures Market and the Foreign Exchange Market. Capital Markets are primarily used to raise long and short-term funds, where funds can be provided for longer than one year in many cases. Capital Markets also generally include both primary and secondary markets. Primary markets are the source for new issues of stocks and bonds obtained through the underwriter, while secondary markets involve obtaining the securities through an exchange.