Capital Market

The capital market is place for selling and buying of financial securities like stocks and bonds. The capital market trades in long-term securities. Capital markets are interdependent with a nation’s economy and the dynamics of both can affect each other

Capital markets exist in two forms, the primary market where the selling and buying of new shares and securities occur. In a primary market, a company issues new securities in exchange for money from investors. As such, the primary market is concerned with the issuance of stocks and securities for selling to investors

The secondary market deals majorly with the exchange of existing or previously issues securities among investors. The new securities that are issued and sold in the primary market are efficiently managed for resale in the secondary market. As such, the secondary market provides an avenue for investors to trade existing securities.