What is called capital market, what is capital market

A: The capital market, also known as the "long-term capital market", is an important part of the financial market. As a theoretical concept corresponding to the money market, the capital market usually refers to the market composed of various financing activities with a term of more than 1 year.

Extended Content:

1. Principle. Essentially, capital is wealth, usually in the form of money or physical property. There are two main types of people in the capital market:

People who look for capital, and those who provide it. The people looking for capital are usually industrial and commercial enterprises and **; The person who provides the capital is the one who wants to make a profit by lending or buying assets.

Capital, in an economic sense, refers to the basic factors of production used for production, that is, material resources such as capital, plant, equipment, and materials. In the field of finance and accounting, capital is often used to represent financial wealth, especially financial assets used to do business and set up a business. In a broad sense, capital can also be used as a general term for various socio-economic resources for human beings to create material and spiritual wealth.

The capital market is only one of the forms of the market. Markets are made up of sellers and buyers, sometimes in physical spaces, such as farmers' markets or shopping malls, and sometimes in electronic settings. A financial market is a market where financial products are traded.

For example, the currency market is a currency market in which currencies are compared to each other, and market participants trade various currencies to satisfy their needs or speculate. Similarly, the commodity market and the capital market are designed to meet the different financial needs of both parties involved in buying and selling.

2. Features. Compared with the money market, the main characteristics of the capital market are:

1.Long financing term.

At least more than 1 year, it can be up to several decades, or even no expiration date. For example, medium and long-term bonds have a maturity of more than 1 year; **No expiration date, no expiration date, permanent**; The duration of closed** is generally 15-30 years.

2.Liquidity is relatively poor.

Most of the funds raised in the capital market are used to meet medium and long-term financing needs, so the liquidity and liquidity are relatively weak.

3.The risk is high and the return is high.

Due to the long financing period and the high possibility of major changes, the market is prone to volatility, and investors need to bear greater risks. At the same time, as a reward for risk, the return is also higher.

In the capital market, the main funds are savings banks, insurance companies, trust and investment companies and various individual investors; The capital demand side is mainly enterprises, social groups, ** institutions, etc. Its trading objects are mainly medium and long-term credit instruments, such as **, bonds and so on. The capital market mainly includes the medium and long-term credit market and the ** market.

4. Large amount of capital borrowing.

5. **Large range of changes.

The capital market is a long-term capital market. It refers to the place of capital lending and trading for financing and operation for more than one year, also known as the medium and long-term capital market.

Capital market. Also known as the long-term capital market.

It is an important part of the financial market. As a theoretical concept corresponding to the money market, the capital market usually refers to the market that conducts medium- and long-term (more than one year) capital (or asset) lending and financing activities.

Because in long-term financial activities, it involves a long term of funds, high risks, and long-term stable income, similar to capital investment, so it is called the capital market.

Extended information: Finance refers to the economic life, banks, ** or insurance companies from the main body of the market.

The economic activity of raising funds and lending them to other market entities.

Broadly speaking, all capital flows generated by market entities such as **, individuals, and organizations through the raising, allocation and use of funds can be called finance. Therefore, not only the financial industry, but also the finances of the industry, the behavior of industry enterprises, and personal financial management are all part of finance. Finance can be regarded as three types of economic behaviors: fundraising allocation (fundraising), investment and financing (borrowing money to buy stocks).

Basic meaning. The essence of finance is the circulation of value. There are many types of financial products, including banks, insurance, trusts, etc. Finance involves a wide range of academic fields, including accounting, finance, and investment.

Banking, ** science, insurance, trust science, etc.

Constituent elements. There are five elements of finance:

1. Financial object: currency (capital). The currency circulation regulated by the monetary system has the nature of advance, turnover and value-added;

2. Financial methods: represented by credit methods based on lending. The objects of transactions in the financial market are generally written proof of credit relationship, contractual documents of creditor's rights and debts, etc.;

Including direct financing: no intermediaries involved; Indirect financing: Finance through the intermediary role of intermediaries.

3. Financial institutions: usually divided into banks and non-bank financial institutions.

4. Financial venues: financial markets, including capital markets, money markets, foreign exchange markets, insurance markets, and derivative financial instruments.

markets and so on; 5. System and regulation mechanism: supervise and regulate financial activities.

The relationship between the elements: Generally speaking, the elements are relatively independent and interrelated, with financial objects and financial venues being the hardware elements of the financial system, financial methods, systems and regulatory mechanisms being the software elements of the financial system, and financial institutions being the comprehensive elements.

Specifically, financial activities are generally carried out through credit instruments.

As a carrier, and through the trading of credit instruments, it plays a role in the financial market to realize monetary funds.

The transfer of usufruct rights is in which the financial system and regulatory mechanisms play a supervisory and regulatory role.

The capital market refers to the trading market in which financial assets with a maturity of more than one year are the subject matter of transactions. The trading objects of the capital market are mainly medium and long-term public bonds, corporate bonds and other valuable bonds, as well as medium and long-term bank loans. In China, the capital market mainly includes the bond market, the market and the investment market.

The capital market refers to the financial market in which financial assets with a maturity of more than one year are the subject matter of transactions. Generally speaking, the capital market includes two major parts: the medium and long-term deposit and loan market of banks and the market of valuable funds. In general, the capital market mainly refers to the bond market and the ** market.

What is Capital Markets? The capital market refers to the market for medium and long-term capital lending and financing activities, which is called the capital market because of its long capital period, high risk, and similar capital investment. The capital market only describes a market form, which is composed of buyers and sellers, and now refers more to the electronic trading environment, that is, the trading market of financial products, for example, the money market, the market, and the market is the place where the market is issued and traded by the market, such as bonds, investments, etc., which is a major part of the capital market and a typical form.