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The capital market - where existing securities are traded...

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The capital market (securities markets) is the market for securities, where companies and the government can raise long-term funds. The capital market includes the stock market and the bond market. Financial regulators, such as the U.S. Securities and Exchange Commission and the Financial Services Authority in the UK, oversee the markets, to ensure that investors are protected against misselling. The capital markets consist of the primary market, where new issues are distributed to investors, and the secondary market,
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Unformatted text preview: where existing securities are traded. The capital market can be contrasted with other financial markets such as the money market which deals in short term liquid assets, and derivatives markets which deals in derivative contracts. Both the private and the public sectors provide market makers in the capital markets. While security market line is the linear relationship between the expected return of seurity and its systematic risk, the expected return comparing a risk-free return plus a risk premium....
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