Capital market

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

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
• Market
• Money market