The Capital Market Securities

The two main types of capital market securities are stocks and bonds. Traded in separate markets, companies, corporations and governments use them to raise funds for various purposes. These funds are raised for long terms and are the regulatory to supervise the capital market securities and their respective market in every country.


Bond is the medium for handling the debt securities. As the bond market is a part of the capital market, it provides the opportunity to deal in the debt securities. Bond enjoys a vast international market estimated to be around $45 trillion. A huge slice of this bond market transaction generally takes place in the over-the-counter market, where as the corporate bonds are listed on the exchanges.

There exist different types of bonds in the market like- the corporate bond, municipal bond, government bond and many more. The government bond is the most secured one amongst all these, besides being the biggest and most liquid.


Another type of capital market security is known as stocks. These are favored by the investors as they can get huge returns from this capital market instrument. The estimated size of the global stock market is evaluated to be around $45 trillion. Used for trading of company stocks, companies and governments use it to raise funds for different purposes.

There exists every kind of investor in the capital market, both the individual investors and the institutional investors. Today, the market trend has completely changed and is mainly dominated by the institutions, which are increasing the volume of the market. Hence it’s very important for the investor to take proper care while selecting capital market securities, as the risk factor related to these securities are different.A proper research should be done before any investment.