What are Capital Markets?

Capital markets are the exchange system platform that transfers capital from investors who want to employ their excess capital to businesses                        that require the capital to finance various projects or investments.

Livesite.com provides all type of IT solutions for Capital Markets which runs on technology computing complex calculations in seconds. Our services & solutions help institutions across Wealth Management, Investment Backing, Risk Management and  Compliance in running their processes smoother.

Capital markets
Capital markets

Types of Capital Markets

There are two types of securities in capital markets: equity securities and debt securities. Both are types of investments that provide  distinct returns and risks to investors, as well as money with varied duties to users.
 
 

1. Equity Securities

The stock market trades equity instruments, which are basically ownership shares in company or enterprise. 
When you buy equity securities in firm, you are basically buying piece of the company and are entitled to                                        any future profits it generates.
 
The money you invest in equity securities, on the other hand, is not obliged to be repaid by the company.
 
 

2. Debt Securities

Debt securities are IOUs that can be in the form of bonds or notes and are exchanged on the bond market. 
They essentially signify borrowing money that will be repaid with interest at later period. The needed reward  that entices lenders to lend their money is interest.
 

The securities can be bought and sold on two types of markets:

1. When firm directly issues securities in return for capital, this is known as the primary market.
2. When security holders trade with other investors in transaction that is not connected to the                         issuing business, this is known as the secondary market.
 
 

Other Types

Capital markets feature trading of other securities as well, including:

  • * Foreign exchange (forex)
  • * Commodities
  • * Derivatives

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