What does the capital market include?

Capital market includes stock market, medium and long-term bond market and securities investment fund market. The providers of funds in the capital market are financial institutions, such as commercial banks, savings banks, life insurance companies, investment companies and trust companies.

Capital market, also known as long-term capital market, is an important part of financial market. As a theoretical concept corresponding to money market, capital market usually refers to the market for medium and long-term (more than one year) lending and financing activities of funds (or assets). Because long-term financial activities involve long-term capital, high risk and long-term stable income, which is similar to capital investment, it is called capital market.

1. The capital market consists of four sub-markets:

1. The securities market, whose trading tools mainly include stocks, bonds, fund securities and other derivative securities.

2. Loan market, such as medium and long-term mortgage loans and project financing.

3. Stock market, such as financial futures and financial options.

4. Corporate mergers and acquisitions, asset restructuring and other property rights trading markets.

Capital market refers to the financial assets trading market with a term exceeding 1 year. It includes two parts: the long-term deposit and loan market of banks and the securities market. Since long-term financing securitization has become the future development trend, the capital market is now also called the securities market.

The main function of the capital market is to finance long-term funds. The tools of capital market include stocks, corporate bonds, long-term government bonds and long-term bank loans.

Two. Capital market business includes: stock, bond and fund business.

1. The stock is the ownership certificate issued by the joint-stock company, and it is a kind of valuable securities issued by the joint-stock company to all shareholders to raise funds, as the shareholding certificate to obtain dividends and bonuses.

2. Bond is a kind of financial contract, which is a creditor's right and debt certificate issued to investors when the government, financial institutions and industrial and commercial enterprises directly borrow money from the society to raise funds. At the same time, they promise to pay interest at a certain rate and repay the principal according to the agreed conditions.

3. Funds can be divided into broad sense and narrow sense. Broadly speaking, a fund refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations.

Third, the function of the capital market:

1. The capital market is an important channel for raising funds.

2. Capital market is an effective place for rational allocation of resources.

3. The capital market is conducive to enterprise restructuring.

4. Promote the development of industrial structure to a higher level.