A capital market is a financial market in which long-term debt or equity-backed securities are bought and sold. Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments.

Most capital markets can be accessed only by entities within the financial sector or the treasury departments of governments and corporations, but some can be accessed directly by the public. Examples of capital instruments include bonds and stocks.

There are two parts of capital markets; primary and secondary. In a primary market new shares are offered for sale, i.e. a company is about to make its IPO, whereas in a secondary market already-issued shares are traded.