Capital market

Capital markets trade longer-term financial instruments (usually with a life of more than one year) and equity.

Primary capital markets are concerned with the initial raising of capital.

Secondary markets allow the original investors to sell on their investments

Yields on instruments with maturities of more than one year are commonly quoted on an effective annual rate basis.

(An exception to this being bonds with semi-annual interest payments, which are more commonly quoted on a semi-annual basis.)

See also

• Capital employed
• DCM
• Disintermediation
• Effective annual rate
• Euromarket
• Foreign bond
• International capital market
• Market
• Money market
• Primary market
• Secondary market
• Semi-annual basis