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A capital market isa marketforsecurities(debtorequity), wherebusiness enterprises (companies)

andgovernmentscan raise long-term funds. It isdefined as a market in which money is providedfor periods longer than a year,[1][dead link] as the raisingof short-term funds takes place on other markets(e.g., themoney market). The capital marketincludes thestock market (equity securities) andthebond market(debt). Money marketsand capital

markets are parts offinancial markets.

The primary market is that part of thecapitalmarketsthat deals with the issuance ofnewsecurities. Companies, governments or publicsector institutions can obtainfunding through thesale of a newstockorbondissue. This is typically

done through a syndicate of securities dealers.The process of selling new issues to investors iscalled underwriting. In the case of a new stockissue, this sale is aninitial public offering(IPO).Dealers earn a commission that is built into theprice of the security offering, though it can befound in theprospectusDefinition of 'Secondary Market'A market where investors purchase

securities or assets from other investors,rather than from issuing companiesthemselves.

Definition of 'Equity Market'

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The market in which shares are issuedand traded, either through exchanges orover-the-counter markets. Also known as

the stock market, it is one of the mostvital areas of a market economy becauseit gives companies access to capital andinvestors a slice of ownership in acompany with the potential to realizegains based on its future performance.

Definition of 'Credit Market'1. The broad market for companies looking toraise funds through debt issuance.

The bond market (also known as the credit,or fixed income market) is afinancialmarket where participants can issue new debt,

known as theprimary market, or buy andselldebtsecurities, known as theSecondarymarket, usually in the form ofbonds. The primarygoal of the bond market is to provide a mechanismfor long term funding of public and privateexpenditures.

Definition of 'Debenture'A type of debt instrument that is notsecured by physical asset orcollateral. Debentures are backed only by

thegeneral creditworthiness and reputationof the issuer. Both corporations and

governments frequently issue this type of

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bond in order to secure capital. Like othertypes of bonds, debentures aredocumented in an indenture.

Definition of 'Mutual Fund'An investment vehicle that is made up of apool of funds collected from many investorsfor the purpose of investing in securities suchas stocks, bonds, money market instrumentsand similar assets. Mutual funds are operated

by money managers, who invest the fund'scapital and attempt to produce capital gainsand income for the fund's investors.

Definition of 'Forex - FX'The market in which currencies are traded. The forex

market is the largest, most liquid market in the worldwith an average traded value that exceeds $1.9 trillionper day and includes all of the currencies in the world.