Capital Markets
What Are Capital Markets?
Capital markets are financial markets where long-term debt or equity-backed securities are bought and sold. These markets enable businesses, governments, and other entities to raise funds to finance operations, projects, or expansion.
Types of Capital Markets
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Primary Market: Where new securities are issued and sold to investors for the first time (e.g., initial public offerings).
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Secondary Market: Where existing securities are traded among investors (e.g., stock exchanges).
Key Instruments in Capital Markets
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Equities (Stocks): Represent ownership in a company.
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Bonds: Debt securities issued by corporations or governments.
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Derivatives: Financial contracts whose value is derived from underlying assets.
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Other Instruments: Such as convertible securities, asset-backed securities.
Functions of Capital Markets
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Facilitate the raising of capital for growth and development.
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Provide liquidity for investors.
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Enable price discovery through supply and demand.
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Help allocate resources efficiently within the economy.
US Capital Private Bank’s Role
US Capital Private Bank provides access to capital markets through advisory services, investment opportunities, and financing solutions. Our expertise supports clients in navigating market complexities and optimizing capital raising strategies.