Capital markets ( capital markets ) is the market for various long- term financial instruments that can be traded , such as debt securities ( bonds ) , equities ( stocks ) , mutual funds , derivatives and other instruments . The capital market is a means of financing for companies and other institutions ( eg, government ) , and as a means for investing activities . Capital market infrastructure to facilitate various trading activities and other related activities .
Types of Capital Market Instruments :
Financial instruments that are traded in the stock market is a long-term instruments ( over a period of 1 year ) such as stocks , bonds , warrants, rights , mutual funds , and various derivative instruments such as options , futures , and others .
Capital Markets Function :
The capital market has two functions , first as a means for funding a business or as a means for companies to obtain funds from public investors ( investors ) . The proceeds from the capital market can be used for business development , expansion , increase working capital and others , both the capital markets as a means for people to invest in financial instruments such as stocks , bonds , mutual funds , and others. Thus , the public can put its own funds in accordance with the characteristics of the benefits and risks of each instrument .