In financial terms, a capital market is a market where financial securities are traded by individuals as well as institutions. These securities are traded in capital markets in order to raise funds. Stock and bond markets are typical examples of capital markets. Companies as well as governments typically utilize capital markets in order to make long-term investments. Nowadays, almost all capital markets across the world are hosted on electronic trading systems that are powered by computers. Stock exchanges and investment banks are some instances of systems that host capital markets. Such systems are usually concentrated in global financial centers such as London, New York and Hong Kong. The two main divisions of capital markets include primary markets and secondary markets. Hide this