Capital Markets

Definition:

The global and/or regional markets for the purchase and sale of Debt Securities and Equity Securities, which allow corporate, sovereign and supranational issuers to raise long-term finance (as opposed to short-term borrowings) to fund their activities.

The term “equity capital markets” refers to the issuing and trading of Equity Securities, such as shares. The term “debt capital markets” refers to the issuing and trading of Debt Securities, such as bonds. The initial issuance of a security occurs in a Primary Market with subsequent trading occurring on a Secondary Market or Aftermarket.

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