Capital market is a market where buyers and sellers involve in trade of financial securities like bonds, frameworks, etc. The buying/selling is commenced by contributors such as folks and institutions.
Capital markets help channelize excess capitals from collectors to foundations which then finance them into fruitful use. Generally, this market trades mostly in long-term sanctuaries.
Capital market consists of primary and secondary markets. Prime market contracts with trade of new issues of stocks and other securities, whereas secondary market deals with the exchange of existing or previously-issued sanctuaries. Another important separation in the capital market is made on the source of the nature of security dealt, i.e. stock market and bond market.