LingvoCore.com

capital market: meaning, definition, pronunciation and examples

B2-C1 (High frequency in finance/economics contexts, low in general conversation)
UK/ˌkæp.ɪ.təl ˈmɑː.kɪt/US/ˌkæp.ə.t̬əl ˈmɑːr.kɪt/

Formal, Technical (Finance/Economics)

My Flashcards

Quick answer

What does “capital market” mean?

A financial market where long-term debt or equity-backed securities are bought and sold.

Audio

Pronunciation

Definition

Meaning and Definition

A financial market where long-term debt or equity-backed securities are bought and sold.

The entire system that includes issuers of securities (companies, governments) and investors (institutions, individuals), along with intermediaries (banks, brokers) and regulators, facilitating the raising of long-term capital for investment and economic growth.

Dialectal Variation

British vs American Usage

Differences

Concept and terminology are identical. Minor differences may exist in subsidiary regulations or market names (e.g., FTSE vs. S&P 500).

Connotations

Neutral technical term in both varieties.

Frequency

Equally common in UK and US financial discourse.

Grammar

How to Use “capital market” in a Sentence

[Company/Government] + raised + [amount] + in/from + the capital market(s)The capital market + provides/offers + [funding/liquidity] + for/to + [entity]To + [access/enter/develop] + (the) capital market(s)

Vocabulary

Collocations

strong
domestic capital marketglobal capital marketdeveloped capital marketemerging capital marketefficient capital marketintegrated capital marketaccess capital marketstap capital marketsraise funds in capital markets
medium
capital market financingcapital market activitycapital market volatilitycapital market infrastructurecapital market regulatordeep capital marketliquid capital market
weak
capital market conditionscapital market developmentcapital market intermediarycapital market instrumentcapital market operation

Examples

Examples of “capital market” in a Sentence

noun

British English

  • The company listed on the London capital market to raise growth capital.
  • Regulation of the capital market falls under the Financial Conduct Authority.

American English

  • The startup entered the capital market through a direct listing.
  • Capital market performance is a key indicator for the broader economy.

Usage

Meaning in Context

Business

The firm is considering an IPO to access the international capital markets for expansion.

Academic

The study analyses the impact of regulatory changes on the efficiency of emerging capital markets.

Everyday

News reports said the company's poor results caused turmoil in the capital markets. (Simplified usage)

Technical

The corporate bond issuance was oversubscribed, indicating strong appetite in the capital market for credit risk.

Vocabulary

Synonyms of “capital market”

Strong

equity and bond marketsstock and bond markets

Neutral

securities marketfinancial market (long-term)

Weak

funding marketinvestment market

Vocabulary

Antonyms of “capital market”

money marketshort-term credit marketbank lending

Watch out

Common Mistakes When Using “capital market”

  • Using 'capital market' to refer to a city that is a seat of government (capital city).
  • Confusing 'capital market' (long-term) with 'money market' (short-term).
  • Treating it as a plural-only noun; 'market' can be singular when referring to the system (e.g., 'the capital market is efficient').

FAQ

Frequently Asked Questions

Not exactly. The stock market (equity market) is a major PART of the capital market. The capital market also includes the bond market (debt) and other long-term investment instruments.

Yes, primarily through intermediaries like mutual funds, pension funds, or by directly buying shares (stocks) or bonds through a broker. However, large institutions dominate trading.

The primary market is where new securities are issued and sold for the first time (e.g., an IPO). The secondary market is where existing securities are traded among investors (e.g., buying shares on the stock exchange).

They efficiently channel savings from investors to businesses and governments that need long-term funds for investment in projects, infrastructure, and innovation, promoting economic growth and job creation.

A financial market where long-term debt or equity-backed securities are bought and sold.

Capital market is usually formal, technical (finance/economics) in register.

Capital market: in British English it is pronounced /ˌkæp.ɪ.təl ˈmɑː.kɪt/, and in American English it is pronounced /ˌkæp.ə.t̬əl ˈmɑːr.kɪt/. Tap the audio buttons above to hear it.

Phrases

Idioms & Phrases

  • “(To be) at the mercy of the capital markets”
  • “(To) go to the capital markets”

Learning

Memory Aids

Mnemonic

Think: 'CAPITAL' as in money for long-term investment + 'MARKET' as in a place to trade. Combined, it's the marketplace for long-term investment money.

Conceptual Metaphor

A CAPITAL MARKET IS A MACHINE/ECOSYSTEM (channels funds, allocates resources, has moving parts like investors and instruments).

Practice

Quiz

Fill in the gap
After the successful product launch, the tech firm decided to to finance its next phase of research and development.
Multiple Choice

Which of the following is a primary function of a capital market?

capital market: meaning, definition, pronunciation and examples | Lingvocore