Capital markets are the lifeline of an economy that facilitates funding for Government, corporations, and other institutions. Savings and investments are channelised to those in need of funding in capital markets. Investors and savers can include households and institutions, while capital seekers primarily include Governments, corporations, and institutions.
The Capital Markets are classified into Primary Market and Secondary Market. Primary market is only concerned with the new issuance of securities. The moment security is exchanged between two parties after the initial issue, it happens in the secondary market.