Capital market

From Wikipedia, the free encyclopedia

The capital market is the market for securities,
where companies and governments can raise longterm funds. The
capital market includes the stock marketand the bond market.
Financial regulators, such as the U.S. Securities and Exchange
Commission, oversee the capital markets in their designated countries
to ensure that investors are protected against fraud.

The capital markets consist of the primary market and the secondary
market. The primary markets is where new stock and bonds issues are
sold (underwriting) to investors. The secondary markets are where
existing securities are sold and bought from one investor or speculator
to another, usually on an exchange (eg.- New York Stock Exchange).

Security (finance)
From Wikipedia, the free encyclopedia
Securities

Securities
Bond
Equities
Investment Fund
Derivatives
 Structured finance
Agency Securities

Markets
Bond market
Stock market
Futures market
Foreign exchange market
Commodity market
Spot market
Over-the-counter Market (OTC)

Bonds
Bonds by coupon
Fixed rate bond
Floating rate note
Zero-coupon bond
Inflation-indexed bond
Commercial paper
Perpetual bond

Bonds by issuer
Corporate bond
Government bond
Municipal bond
Sovereign bonds

Equities (Stocks)
Stock
Share
IPO
Short Selling

Investment Funds
Mutual fund
 Index Fund
Exchange-traded fund (ETF)
Closed-end fund
Segregated fund
Hedge fund

Structured finance
Securitization
Asset-backed security
Mortgage-backed security
Commercial mortgage-backed security
Residential mortgage-backed security

Tranching
Collateralized debt obligation
Collateralized fund obligation
Collateralized mortgage obligation

Credit-linked note
Unsecured bond
Agency Securities

Derivatives
Options
Warrants
Futures
Forwards
Swaps
Credit Derivatives
Hybrid Securities

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help improve this article by adding citations to reliable
sources.Unverifiable material may be challenged and removed. (October
2008)
For the legal right given to a creditor by a borrower, see security
interest.
A security is a fungible, negotiable instrument representing financial
value. Securities are broadly categorized into debt securities (such
as banknotes,bonds and debentures), and equity securities,
e.g., common stocks. The company or other entity issuing the security
is called the issuer. What specifically qualifies as a security is
dependent on the regulatory structure in a country. For example,
private investment pools may have some features of securities, but
they may not be registered or regulated as such if they meet various
restrictions.

Securities may be represented by a certificate or, more typically, by an

electronic book entry. Certificates may be bearer, meaning they entitle
the holder to rights under the security merely by holding the security,
or registered, meaning they entitle the holder to rights only if he or she
appears on a security register maintained by the issuer or an
intermediary. They include shares of corporate stock or mutual
funds, bonds issued by corporations or governmental agencies, stock
options or other options, limited partnership units, and various other
formal investment instruments that are negotiable and fungible.

Stock market
From Wikipedia, the free encyclopedia
This article needs additional citations for verification. Please
help improve this article by adding reliable references. Unsourced
material may be challenged and removed. (July 2008)
For the distributor named The Stock Market, see The Stock Market
(distributor).
Financial markets
 Bond market
Fixed income
Corporate bond
Government bond
Municipal bond
Bond valuation
High-yield debt

Stock market
Stock
Preferred stock
Common stock
Registered share
Voting share
Stock exchange

Foreign exchange market

Derivatives market
Credit derivative
Hybrid security
Options
Futures
Forwards
Swaps

Other Markets
Commodity market
Money market
OTC market
Real estate market
Spot market

Finance series
 Financial market
Financial market participants
Corporate finance
Personal finance
Public finance
Banks and Banking
Financial regulation

v•d•e

A stock market, or equity market, is a private or public market for

the trading of company stock and derivatives of company stock at an
agreed price; these are securities listed on a stock exchange as well as
those only traded privately.

The size of the world stock market is estimated at about $36.6 trillion
US at the beginning of October 2008 [1]. The world derivatives market
has been estimated at about $480 trillion face or nominal value, 12
times the size of the entire world economy. The value of the
derivatives market, because it is stated in terms of notional values,
cannot be directly compared to a stock or a fixed income security,
which traditionally refers to an actual value. Many such relatively
illiquid securities are valued as marked to model, rather than an actual
market price.

The stocks are listed and traded on stock exchanges which are entities
a corporation or mutual organization specialized in the business of
bringing buyers and sellers of the organizations to a listing of stocks
and securities together. The stock market in the United States includes
the trading of all securities listed on the NYSE, the NASDAQ, the Amex,
as well as on the many regional exchanges, e.g. OTCBB and Pink
Sheets. European examples of stock exchanges include the London
Stock Exchange, the Deutsche Börse and the Paris Bourse, now part
of Euronext.
Bond market
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its sources remain unclear because it has insufficient inline citations.
You can improve this article by introducing more precise citations where
appropriate. (July 2008)
Financial markets

Bond market
Fixed income
Corporate bond
Government bond
Municipal bond
Bond valuation
High-yield debt

Stock market
Stock
Preferred stock
Common stock
Registered share
Voting share
Stock exchange

Foreign exchange market

Derivatives market
Credit derivative
Hybrid security
Options
Futures
Forwards
Swaps

Other Markets
 Commodity market
Money market
OTC market
Real estate market
Spot market

Finance series
Financial market
Financial market participants
Corporate finance
Personal finance
Public finance
Banks and Banking
Financial regulation

v•d•e

The bond market (also known as the debt, credit, or fixed income
market) is a financial market where participants buy and
sell debt securities, usually in the form of bonds. As of 2006, the size of
the international bond market is an estimated $45 trillion, of which the
size of the outstanding U.S. bond market debt was $25.2 trillion.

Nearly all of the $923 billion average daily trading volume (as of early
2007) in the U.S. bond market takes place between broker-dealers and
large institutions in a decentralized, over-the-counter (OTC) market.
However, a small number of bonds, primarily corporate, are listed
on exchanges.

References to the "bond market" usually refer to the government

bond market, because of its size, liquidity, lack of credit risk and,
therefore, sensitivity tointerest rates. Because of the inverse
relationship between bond valuation and interest rates, the bond
market is often used to indicate changes in interest rates or the shape
of the yield curve.