Learn what the capital market does, who uses it, and how it channels long-term funding from savers to borrowers.
The capital market is the system through which long-term funding is raised and allocated.
It connects savers and investors with governments, corporations, and other issuers that need capital for projects, expansion, refinancing, or long-horizon spending.
Capital-market activity is usually associated with longer-term claims such as:
That makes it different from the money market, which focuses on shorter-term instruments.
A well-functioning capital market helps economies channel savings toward productive uses. It also helps investors choose among risk, return, liquidity, and maturity profiles.