What happens in a Capital Market?

-They Provide Governments and Firms Medium-Long Term Finance. Governments and Firms also can raise Finance by issuing Bonds, Shared, or Borrowing from Banks -Capital Markets have a Primary Market - where New Shares and Bond Issues are - and a Secondary Market - where Existing Securities (Bonds and Shares) are Traded. -Capital Markets allow for Liquidity to be Increased for Firms and Governments.