Capital market is a broader term that includes the stock market and other venues for trading financial products. So the term capital market includes the stock market and practically any other type of financial trading which comes to mind.
may trade in other financial securities including bonds, derivative
contracts such as options, various loans and other debt instruments
, and commodity futures
. Other financial instruments may be sold in capital markets and these products are becoming increasingly sophisticated. Some capital markets are available to the public directly while others are closed to everyone except large institutional investors
. Private trade, mostly between large institutions with high-volume trades, occurs via secured computer networks at very high speeds. These markets all trade financial securities, so they are all capital markets. The stock market is a very significant portion of the total volume of capital market trades.
Now, for some that may be a lot take in so heres a short yet very effective video which explains capital markets.