Securities Industry:What are Capital Markets?

-the success of the us economy is due mostly to the free flow of capital between corporations, governmental bodies, and investors-flow of $ is made possible by a highly developed capital markets system-businesses need to raise money in order to build an expand via leant money- bonds (securities). Stocks are equity ownership-investors can purchase a stake in the company2 types of capital markets-primary market-covers the sale of securities by issuers to investors.  Ex. Initial public offering-secondary market-system for trading financial instruments between investors.  Ex. Sale of stock from one party to another on NY stock exchange