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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.
- Browse Related Terms: Capital, Capital markets, Initial public offering (IPO), Investment bank, Issuer, Lead underwriter, Private placement, Red herring, Syndicate, Underwriter, Underwriting