<a href='/Capital_Markets'>Capital markets</a> are financial markets where long-term debt or equity-backed <a href='/SEC'>sec</a>urities are bought and sold. They provide a platform for companies to raise capital by issuing <a href='/SEC'>sec</a>urities to investors, and for investors to buy and sell <a href='/SEC'>sec</a>urities.
<a href='/Capital_Markets'>Capital markets</a> are a vital part of the <a href='/Global_Economy'>global economy</a>, providing a platform for companies to raise capital and investors to access a wide range of investment opportunities. <a href='/Capital_Markets'>Capital markets</a> are composed of two main components: the <a href='/Primary_Market'>primary market</a>, where new <a href='/SEC'>sec</a>urities are issued, and the <a href='/<a href='/SEC'>Sec</a>ondary_Market'><a href='/SEC'>sec</a>ondary market</a>, where existing <a href='/SEC'>sec</a>urities are traded.<br><br>The <a href='/Primary_Market'>primary market</a> is where companies issue new <a href='/SEC'>sec</a>urities, such as stocks and bonds, to raise capital. Companies typically issue <a href='/SEC'>sec</a>urities through an initial public offering (IPO) or a private placement. IPOs are typically used to raise large amounts of capital, while private placements are used to raise smaller amounts of capital. In both cases, the <a href='/SEC'>sec</a>urities are sold to investors in exchange for cash.<br><br>The <a href='/<a href='/SEC'>Sec</a>ondary_Market'><a href='/SEC'>sec</a>ondary market</a> is where existing <a href='/SEC'>sec</a>urities are traded. This market is composed of exchanges, such as the New York Stock Exchange (NYSE) and the Nasdaq, as well as over-the-counter (OTC) markets. On exchanges, <a href='/SEC'>sec</a>urities are traded through a centralized system, while OTC markets are decentralized and involve direct trading between buyers and sellers.<br><br><a href='/Capital_Markets'>Capital markets</a> are regulated by government agencies, such as the <a href='/SEC'>Sec</a>urities and Exchange Commission (<a href='/SEC'>SEC</a>) in the United States. These agencies are responsible for ensuring that the markets are fair and efficient, and that investors are protected from fraud and manipulation.<br><br><a href='/Capital_Markets'>Capital markets</a> are an important source of capital for companies, and provide investors with access to a wide range of investment opportunities. They are also an important part of the <a href='/Global_Economy'>global economy</a>, as they facilitate the flow of capital between investors and companies. As such, <a href='/Capital_Markets'>capital markets</a> play a vital role in the growth and development of the <a href='/Global_Economy'>global economy</a>.