The primary market is where securities are created and sold for the first time. It is often called the "new issue market". How it Works
Prices fluctuate constantly based on supply and demand.
Establishes the fair market value of assets through continuous trading.
Includes stocks (equity) , bonds (fixed income), and derivatives.
Capital markets are platforms for buying and selling long-term financial instruments (typically with maturities over one year). Key Characteristics
Focused on long-term financing, distinguishing them from short-term "money markets".
Selling securities to a small group of select investors. Participants Issuers: Corporations or governments raising funds.