The capital market is one of the types of Financial Market. So, before going to learn about Capital Markets, let's see what are Financial Markets. 

Financial Markets

The financial system of a country is a combination of financial markets. A financial market is a market that brings buyers and sellers together to trade in financial assets such as stocks, bonds, commodities, derivatives and currencies. The purpose of a financial market is to set prices for global trade, raise capital, and transfer liquidity and risk. Although there are many components to a financial market, three of the most commonly used are :

• Capital markets, 
• Commodity markets and 
• Money markets

Today we shall learn about Capital Market. 

Capital Market

Capital markets are markets for buying and selling equity and debt instruments. These markets are also known as "Securities Market". Capital market refers to facilities & institution arrangements through which long-term funds, both debt and equity are raised and invested. The capital market consists of development banks, commercial banks, and stock exchanges.

Capital market can be divided into two types. They are :

• Primary Market
• Secondary Market