What is a capital market?

Capital market refers to a broad spectrum of tradeable assets that includes the stock market as well as other venues for trading different financial products. The stock market allows investors and banking institutions to trade specifically in stocks, either publicly or privately.

Who is a supplier in a capital market?

Suppliers are people or institutions with capital to lend or invest and typically include banks and investors. Those who seek capital in this market are businesses, governments, and individuals. Capital markets are composed of primary and secondary markets. The most common capital markets are the stock market and the bond market.

What is a stock market?

A stock market is a particular category of the capital market that only trades shares of corporations. Capital markets may trade in other financial securities including bonds; derivative contracts such as options, various loans, and other debt instruments, and commodity futures.

How do you calculate market cap?

Market capitalization, or market cap, is the total value of a company’s shares of stock. If a company has issued 10 million shares, and its share price is $100, its market cap is $1 billion. Market cap is calculated by multiplying the number of stock shares outstanding by the current share price.