The capital market can be defined simply as the market where investment products such as stocks and bonds are bought and sold.
The players include all the people, organizations searching for capital and all the people willing to invest. In this way the both support or take part in the process.
The operations of the capital market revolves around the Stock Market Exchange, which is regarded as the hub/engine for all the activities of the capital market involves.
The main function of the exchange includes:
It is also another way of refering to the stock market when it is used as a platform for raising capital or money from the investing public to meet the company's financial needs. It is an instrument used in mobilizing long term funds for long term investment. The funds are solicited through the issuance of stocks to the public.
Explained further, it is a market whereby large amounts of money (capital) are raised by companies, governments and other organizations for long term use and the subsequent trade of the instruments issued in recognition of such capital.