Capital Market

Capital Market  (Long-Term Financial Market) 

 

Financial markets are generally divided into the money market and the capital market, based on the maturity of the financial instruments traded. The capital market refers to the market where long-term bonds with maturities of more than one year and stocks with no maturity date are traded.

 

The capital market is primarily used by entities such as corporations and governments that need to raise long-term funds from those with excess capital. For this reason, it is also known as the long-term financial market. These funds are typically used for purposes such as business expansion, infrastructure development, and long-term investment.

 

 

In South Korea, the capital market consists of the stock market, where shares of companies are traded, and the bond market, where government bonds, corporate bonds, and financial institution bonds are issued and traded.

 

 

*연관, 단기금융시장

 

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