capital market



A financial market that works as a conduit for demand and supply of debt and equity capital. It channels the money provided by savers and depository institutions (banks, credit unions, insurance companies, etc.) to borrowers and investees through a variety of financial instruments (bonds, notes, shares) called securities.

A capital market is not a compact unit, but a highly decentralized system made up of three major parts: (1) stock market, (2) bond market, and (3) money market. It also works as an exchange for trading existing claims on capital in the form of shares.

Use capital market in a sentence

  • If you can figure out a way to invest wisely you can make a lot of money in the capital market at times.

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  • The capital market was the issue today and we studied it long and hard to figure out how it worked and what it was.

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  • When you are dealing with the capital market you should try to figure out creative ways to get your product in the customers minds.

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