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Capital Market

-The capital market (securities markets) is the market for securities, where companies and the government can raise long-term funds. The capital market includes; the stock market and the bond market. Financial regulators, such as; the U.S. Securities and Exchange Commission and the Financial Services Authority in the UK, oversee the markets to ensure that investors are protected against mis-selling. The capital markets consist of the primary market; where new issues are distributed to investors, and, the secondary market; where existing securities are traded.

The capital market can be contrasted with other financial markets such as the money market which deals in short term liquid assets, and derivatives markets which deal in derivative contracts.