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How Do Capital Markets Work?

March 16, 2021 admin Comments Off on How Do Capital Markets Work?

The financial term for investment funding is capital. It should come as no surprise then, that capital markets are places where investors and those seeking funds come together. Specifically, investors fund companies and municipalities via the purchase of equity securities (stocks) and debt securities (bonds).
Capital markets exist to create a free-exchange of wealth. They allow investors to leverage the wealth-generating capabilities of larger entities for personal enrichment. Likewise, companies and municipalities can dictate their own capital raising terms. Capital markets are effectively the basis for a free-market economy. Here’s a look at how these markets work and what they’re used …read more […]