Elizabeth Keatinge's profile

An Introduction to Capital Market

With extensive experience in journalism and broadcast media, Elizabeth “Libby” Keatinge Scheideler has worked as a breaking news reporter and producer for several different media sites around the country. In 2018, Elizabeth Keatinge established FundsSavvy.com, a financial website platform dedicated to empowering and encouraging women to educate themselves about the financial markets.

The capital market is a subset of the broader financial market, including all venues where buyers and sellers of financial products can transact. To raise financial resources, companies turn to the capital market. Companies can raise funds in the capital market by selling stock or issuing bonds. The stock market and the bond market are thus included in the capital market.

Equity, often known as stock, is a type of ownership stake in a firm that entitles the owner to a portion of the earnings. Companies often sell equity by issuing common stock shares. They hire an investment bank to help them conduct an initial public offering which enables potential investors to acquire stock at a specific price.

Longer-term debt instruments, usually more than a year, are transacted in the capital market. Long-term bonds are the most well-known of these products. A bond is a piece of paper that guarantees the owner of the property a payment at a later date. When that day arrives, the bond will have reached maturity and will be able to be redeemed. Corporate bonds are issued by businesses, treasury bonds are issued by the federal government, and municipal bonds are issued by local governments.
An Introduction to Capital Market
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An Introduction to Capital Market

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