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Securities, investments, and capital markets refer to the financial instruments and institutions that facilitate the buying and selling of securities (such as stocks, bonds, and derivatives) and the raising of capital for businesses and governments. The securities market is where securities are traded and the capital markets refer to the market where companies and governments raise money by issuing securities.
Securities include stocks, bonds, and derivatives. Stocks represent ownership in a company, bonds are a form of debt that represents a loan to a company or government, and derivatives are financial contracts whose value is derived from an underlying asset, such as a stock or bond.
Investments refer to the purchase of securities with the expectation of earning a return. Investors can buy securities through the primary market, where securities are first issued, or the secondary market, where securities are traded among investors.
Capital markets refer to the markets where companies and governments raise money by issuing securities. The primary market is where companies and governments first issue securities, and the secondary market is where securities are traded among investors.
The capital markets are made up of several different sectors, including the equity market (where stocks are traded), the bond market (where bonds are traded), the derivatives market (where derivatives are traded), and the money market (where short-term debt securities are traded).
Securities, investments, and capital markets play a vital role in the economy by facilitating the flow of capital from investors to businesses and governments, which in turn helps to promote economic growth and development.
“The stock market is a device for transferring money from the impatient to the patient.” - Warren Buffett
A securities, investments, and capital markets training session covers a variety of topics, such as: