Capital markets

Capital markets refer to financial markets where long-term debt or equity-backed securities are bought and sold. These markets channel the wealth of savers to those who can put it to long-term productive use, such as corporations or governments making long-term investments. This category includes various instruments like stocks, bonds, and other long-term investments. The capital markets play a crucial role in the economy by providing a platform for companies to raise funds for expansion and for investors to earn returns on their investments. Understanding capital markets is essential for anyone looking to invest or understand the broader financial ecosystem.