capital markets

Stock and bonds

Capital markets are financial markets where long-term securities like stocks and bonds are bought and sold.

Unlike money markets, which handle short-term debt, capital markets deal in instruments with maturities over a year—or no maturity at all, as with equities.

Companies and governments raise funds here; investors seek returns.

The IPO gave the company access to capital markets for the first time.

securities

stocks

Ownership stakes or inventory

derivatives · futures · options · ETFs · mutual funds · commodities · index funds · treasuries · debentures · notes

equity

stocks

Ownership stakes or inventory

  • sharesUnits of company ownership
  • IPOFirst public stock offering
  • dividendsProfits paid to shareholders

stock split · buyback · blue-chip · growth stocks · value stocks · common stock · preferred stock · shareholder · voting rights · earnings per share

debt

bonds

Ties that unite

municipal bonds · sovereign debt · junk bonds · high-yield · investment grade · coupon · maturity · yield · credit rating · default

investment

portfolio

Collected works or assets

return · yield · alpha · beta · benchmark · rebalancing · hedging · long-term · short-term · growth

institutions

investment banks

Securities underwriting institutions

pension funds · asset managers · custodians · clearinghouses · underwriters · private equity · endowments · insurance companies · institutional investors

trading

execution

Completing a planned task

  • orderMethodical arrangement or request
  • volumeAmount of space filled
  • tickerInformal term for heart

transaction · buy · sell · bid · ask · spread · clearing · settlement · arbitrage · speculation

exchanges

NYSE

Largest equities market

listing · delisting · ticker symbol · opening bell · closing bell · circuit breaker · electronic trading · order book

regulation

SEC

Stock market regulator

prospectus · insider trading · fiduciary · suitability · Dodd-Frank · registration · enforcement · sanctions · transparency

Categories
Opposites
financial intermediation method

capital marketsbank lending

Issuing loans professionally

commercial banking · direct lending · peer-to-peer lending · microfinance · shadow banking

market type by asset class

capital marketsmoney markets

Short-term debt trading arena

currency markets · foreign exchange markets · commodity markets · foreign exchange market

economic sector

capital marketsMain Street

Town's central thoroughfare

labor markets · goods and services · manufacturing sector · subsistence economy · brick and mortar

Family

market, capital, capitalism, markets, capitalist, capitalize, capitalization, capitalists, capitalized

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