capital markets are markets where ?

Question

capital markets are markets where ?

 

Answer 1

Keanna,

 

Capital markets are where financial instruments are traded, or bought and sold, since capital basically means money. Buyers are looking for appreciation potential and/or steady interest while sellers want to raise money or to buy something better in another financial instrument. Financial instruments can take many forms that can be defined so they appeal to investors, traders. etc.  And their quality (or risk in falling value) can vary widely and is usually reflected in a higher price to cover any estimated risk.