Capital markets are where savings and investments are channeled between suppliers and those in need. Suppliers are people or institutions with capital to lend or invest and typically include banks and investors. Those who seek capital in this market are businesses, governments, and individuals. Capital markets are composed of primary and secondary markets. The most common capital markets are the stock market and the bond market. They seek to improve transactional efficiencies by bringing suppliers together with those seeking capital and providing a place where they can exchange securities.

• Capital markets refer to the venues where funds are exchanged between suppliers and those who seek capital for their own use.

• Suppliers in capital markets are typically banks and investors while those who seek capital are businesses, governments, and individuals.

• Capital markets are used to sell different financial instruments, including equities and debt securities.

• These markets are divided into two categories: primary and secondary markets.

• The best-known capital markets include the stock market and the bond markets.

The term capital market is a broad one that is used to describe the in-person and digital spaces in which various entities trade different types of financial instruments. These venues may include the stock market, the bond market, and the currency and foreign exchange (forex) markets. Most markets are concentrated in major financial centers such as New York, London, Singapore, and Hong Kong.

This course is a self study course. The course should be studied in full to understand all the aspects. This course serves as a beginners guide to capital markets.