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Capital Market
The market in which the purchase and sale of stocks and bonds take place. The capital market allocates savings efficiently by bringing together buyers and sellers of financial assets. Companies can raise money from the capital markets by issuing stocks, which are then bought and sold on the stock exchange. Also, governments and corporations can borrow money in the capital markets by issuing bonds. In addition to the capital markets, there is another financial market called the money market. This market primarily refers to banks and other short-term lenders where companies can borrow and invest money on a short-term basis—less than a year—through certificates of deposit and marketable securities. The capital market is also called the securities market. This capital market consists of a ...