capital markets

Also found in: Dictionary.
Related to capital markets: Money Markets, Investment banking, Financial markets

Capital Market

Any market in which securities are traded. Capital markets include the stock and bond markets. Companies and governments use capital markets to raise funds for their operations; for example, a company may issue an IPO while a government may issue a bond in order to conduct new or expand ongoing activities. Investors purchase securities in the capital markets in order to extract a return and earn profit on the securities. Capital markets include primary markets, such as IPOs that are placed with investors through underwriters, and secondary markets, in which all subsequent trading takes place. Government agencies in different countries regulate local capital markets, though some, especially exchanges, play some role in regulating themselves.

Capital markets.

Capital markets are the physical and electronic markets where equity and debt securities, commodities, and other investments are sold to investors.

When you place an order through a brokerage firm, trade online, or use a dividend reinvestment plan (DRIP), you're participating in a capital market.

Corporations use capital markets to raise money through public offerings of stocks and bonds or private placements of securities to institutional investors, such as mutual fund companies.

capital markets

The markets in which equity is raised and long-term loans (over one year) are originated and traded.These include the stock market,the bond market,and the primary market. The primary market is any market in which the original issuer receives money, such as an investment house that purchases all securities for an original issue and then resells them on the stock market. Short-term debt instruments, for one year or less, are sold in the money markets, not the capital markets.

References in periodicals archive ?
Lowery was previously an executive vice president and head of the firm's Capital Markets Group, which provides clients with comprehensive strategic advice and execution to meet their real estate capital needs.
The long-awaited conversion of the largest life mutuals will further accelerate change, causing insurers in all industry sectors to feel the effects of greater influence from capital markets.
The creation of CBRE Capital Markets formalizes this unification and streamlines our global capital markets offering.
For insurers, transferring catastrophe risk to the estimated $30 trillion-plus global capital markets could solve capacity and credit-risk concerns, as well as ultimately reduce the overall costs of reinsurance.
The International Capital Group will comprise a team of three of the firm's most senior professionals: Noble Carpenter, a senior leader in the Americas Capital Markets Group; Guy Hollis, Country Head of China since May 2002; and Robert Orr, currently European CEO.
Providing comprehensive capital markets solutions for our clients is a top priority for Jones Lang LaSalle.
The launch of the new capital markets service serves as evidence that our decision to bring Leslie and his team on board was indeed a good one.

Full browser ?