Glossary

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Capital market

Companies obtain medium- and long-term loans and investments with terms of at least one year on the capital market. Capital market transactions involve trading in securities (shares, bonds, investment funds, etc.). Mortgages and other types of credit are traded on the credit market. The money market, in contrast, serves for trading in short-term financial instruments.

The capital market is subdivided according to security type into a market for participation rights (e.g. shares and funds) and a market for debt securities (e.g. bonds).

The capital market is also subdivided into a primary market and a secondary market. The primary market is the one in which securities are issued while the secondary market is the market in which they are traded.

See alsoDerivative financial marketMoney market
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