Overview
The capital markets are markets that bring together the providers of capital (investors providing money) and the firms that are looking to raise capital, typically through borrowing or equity issuance.
Investors are agents in the economy that have more money than their current consumption needs. Seeking either protect their money from inflation, or possibly looking to get returns on that money, they look for financial assets which provide a return on their money.
Companies and/or governments or other agencies issues financial securities and sell them to investors.
- Primary Markets - Investment Banks
- Secondary Markets