The capital market, also known as the medium and long-term capital market, is a market for long-term capital trading activities with financial instruments with maturities exceeding 1 year as the medium. Main tools: medium and long-term deposit and loan market of banks and securities market (stocks, bonds, funds, etc.). ).
The market consists of sellers and buyers, sometimes in physical space, such as farmers' markets or large shopping malls, and sometimes in electronic environment. The financial market is the market where financial products are traded.
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Financial instruments such as stocks, futures, gold, foreign exchange and insurance policies are also called financial products, financial assets and securities. Because it is a product that can be bought and sold in the financial market, it is called a financial product; Because they have different functions and can achieve different purposes, such as financing and hedging, they are called financial instruments. In the qualitative and classification of assets, they belong to financial assets, so they are called financial assets; They are legal documents that can prove the relationship between property rights and creditor's rights and debts, so they are called marketable securities. Most financial instruments or products, assets and securities have different degrees of risk.
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