A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets (e.g., the money market).
The capital market includes the stock market (equity securities) and the bond market (debt). Money markets and capital markets are parts of financial markets.
A market in which individuals and institutions trade financial securities. Organizations/institutions in the public and private sectors also often sell securities on the capital markets in order to raise funds.
Both the stock and bond markets are parts of the capital markets.
Are the definitions for capital market from the two sources the same?
If I understand correctly, in Wikipedia, capital market is defined by the length of holding the securities longer than a year, while it is not in investopedia?
If I understand correctly, the opposite of capital market defined in Wikipedia is money market, since the holding length of securities is less than one year in the latter?
What is the opposite of capital market, according to the definition in investopedia? Actually I don't quite understand the definition in investopedia, and an opposite concept will help to clarify it, I think.
- According to the Wikipedia's definition, why does stock market belong to capital market, given that stocks can be held less than one year too?