Understanding Capital Markets: Unlocking Opportunities for Investors and Businesses
Capital markets play a vital role in the growth and development of economies worldwide. They act as a bridge between investors looking to grow their wealth and businesses seeking capital to expand operations. Whether you are an investor, a business owner, or a financial professional, understanding the dynamics of capital markets is crucial in navigating today’s complex financial landscape. What Are Capital Markets? Capital markets are venues where buyers and sellers engage in the trade of financial securities such as stocks, bonds, and other long-term investments. Unlike money markets, which deal with short-term borrowing and lending, capital markets focus on medium- to long-term funding. These markets facilitate the raising of capital for businesses, governments, and other organizations. There are two primary segments of capital markets: Primary Market – This is where new securities are issued and sold for the first time. Companies raise fresh capital through initial publi...