Trading center for securities such as stocks, mortgages, and bonds. The capital market includes both the stock and bond markets.
Companies and the government use capital markets to raise additional funds. Capital markets consist mainly of two components: the primary market where new issues are distributed to investors, and the secondary market where existing securities are traded.
Some important capital market instruments include US securities, US agency securities, corporate bonds, state and local government bonds, mortgage instruments, financial guarantees, securitized instruments, broker-dealer loans, foreign, international and global bonds, and eurobonds. Capital markets are overseen by regulators such as the US Securities and Exchange Commission and the Financial Services Authority. Examples of capital markets are the New York Stock Exchange and the forex market.
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