capital market

Long-term finance arena

A capital market is where buyers and sellers trade financial securities—stocks, bonds, and other long-term investments.

Unlike money markets, which handle short-term debt, capital markets channel savings into long-term productive use: Companies raise funds in capital markets by issuing shares.

Stock exchanges and bond markets are the primary examples.

equity

stocks

Ownership stakes or inventory

IPO · blue-chip · listing · exchange · ownership · stake · dilution · earnings · index · portfolio

trading

brokerage

Transaction-facilitating service

futures · options · shorting · margin · leverage · liquidity · volatility · execution · scalping · settlement

structure

NYSE

Largest equities market

  • NASDAQElectronic securities exchange
  • exchangeMutual giving and receiving
  • OTCAvailable without prescription

derivatives · commodities · forex · depository · custodian · intermediary · infrastructure

debt

bond

Binding tie or connection

debenture · treasury · fixed-income · principal · interest · issuer · sovereign · investment-grade · callable · convertible

investment

portfolio

Collected works or assets

rebalancing · benchmark · alpha · beta · holdings · long-term · passive

regulation

SEC

Stock market regulator

prospectus · transparency · governance · auditing · Sarbanes-Oxley · FINRA · reporting · enforcement · registration · oversight

Categories
Opposites
market duration/instrument maturity

capital marketmoney market

Short-term debt trading sector

spot market

formal vs. informal finance

capital marketloan sharking

Illegal lending at excessive interest

peer-to-peer lending · shadow banking · microfinance

market-based vs. intermediated finance

capital marketbank lending

Issuing loans professionally

commercial banking · credit market · retail banking · savings and loan

Family

market, capital, marketing, supermarket, capitalism, markets, capitalist, capitalize, marketer

Familiarity
Top 200,000
Profile
Used worldwide · Timeless · Abstract · Rated G