A Capital market is a financial market in which long-term debt or equity-backed securities are bought and sold. Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments.

System Benefits

• It makes trading of securities easier for investors and companies.
• It assists the transaction settlement in time.
• It helps minimize transaction costs and information costs.
• It mobilizes the savings of parties from cash and other forms to financial markets.
• It offers insurance against market risk.