The best deﬁnition of capital markets is:
A) The possibility of conﬂicts between shareholders and management in a large corporation.
B) The process of planning and managing a ﬁrm's long-term investments.
C) A venue where long-term debt and equity securities are bought and sold.
D) The purchase or sale of securities whose value derives from the price of another, underlying, asset.
E) A venue where buyers and sellers of capital equipment come together to trade such assets.

Question

Quizplus · Accepted Answer

Capital markets refer to the market where long-term debt and equity securities are bought and sold. This includes public stock exchanges and over-the-counter markets where corporations and governments can raise capital.

The Best Deﬁnition of Capital Markets Is