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Course: The basics of capital markets

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Capital market

The capital market is a place where long-term financial instruments are traded. It is used to raise funds for companies and governments by issuing and selling securities, such as stocks and bonds, to investors. The capital market plays a crucial role in allocating capital from savers to businesses and governments, which in turn can use the capital for investments and growth. By allowing the transfer of capital from savers to borrowers, the capital market helps to promote economic growth and improve the standard of living. Additionally, the capital market also provides a platform for investors to earn a return on their investment and manage their risk by diversifying their portfolios.

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