Capital market


Capital market

A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year,[1][dead link] as the raising of short-term funds takes place on other markets (e.g., the money market). The capital market includes the stock market (equity securities) and the bond market (debt). Financial regulators, such as the UK's Financial Services Authority (FSA) or the U.S. Securities and Exchange Commission (SEC), oversee the capital markets in their designated jurisdictions to ensure that investors are protected against fraud, among other duties.

Capital markets may be classified as primary markets and secondary markets. In primary markets, new stock or bond issues are sold to investors via a mechanism known as underwriting. In the secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, over-the-counter, or elsewhere.

Regulatory authorities

See main article List of financial regulatory authorities by country


See also

References

  1. ^ Sullivan, arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River,: Pearson Prentice Hall. pp. 283. ISBN 0-13-063085-3. http://www.pearsonschool.com/index.cfm?locator=PSZ3R9&PMDbSiteId=2781&PMDbSolutionId=6724&PMDbCategoryId=&PMDbProgramId=12881&level=4. 

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Look at other dictionaries:

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  • Capital market — The market for trading long term debt instruments (those that mature in more than one year). The New York Times Financial Glossary * * * capital market capital market ➔ market1 * * * capital market UK US noun [C] ► FINANCE, ECONOMICS the system… …   Financial and business terms

  • capital market — A market in which long term capital is raised by industry and commerce, the government, and local authorities. The money comes from private investors, insurance companies, pension funds, and banks and is usually arranged by issuing houses and… …   Accounting dictionary

  • capital market — A market in which long term capital is raised by industry and commerce, the government, and local authorities. The money comes from private investors, insurance companies, pension funds, and banks and is usually arranged by issuing houses and… …   Big dictionary of business and management

  • capital market — noun The market for long term securities, including the stock market and the bond market. See Also: money market …   Wiktionary

  • Capital market —   The market for the purchase and sale of medium and long term financial instruments, such as equities, commodities, bonds, notes, swaps and other derivatives …   International financial encyclopaedia

  • capital market — /ˌkæpɪt(ə)l mɑ:kɪt/ noun an international market where money can be raised for investment in a business …   Dictionary of banking and finance

  • capital market — system where financial business deals are performed between investors and savers …   English contemporary dictionary

  • capital market —   mercato dei capitali   Mercato finanziario in senso stretto, a cui partecipano società, enti sovranazionali ed autorità pubbliche, nel quale si negoziano capitali e titoli rappresentativi di capitale …   Glossario di economia e finanza

  • capital market — …   Useful english dictionary


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