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Definition

A broad term which incorporates any market where capital is raised. Mostly this means either the stock market or the bond market. Capital markets typically have a primary market and secondary market. The primary market is where companies and other organisations seek to raise capital by issuing and selling equity (shares) or debt instruments (bonds) to the public (typically the big institutions). The secondary market occurs when memebers of the public buy and sell those instruments between themselves thus creating a marketplace. The activities of capital markets are the subject of numerous rules and regulations in terms of how they function. The Johannesburg Securities Exchange (JSE) conducts both the the equity market and the bond market in South Africa, although there are now a number of new stock exchanges which are competing with it in equities - such as the A2X.

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