Capital market includes the two types of markets such as bond market and stock market. The stock market is a market for the trading of company stock and derivatives of same whereas the bond market is a financial market where the participants buy and sell the debt securities. There are four types of bond markets such as municipal, government and agency, funding, corporate and mortgage backed.

Even the capital markets also consists the two type of market such as the primary and secondary market. The primary markets is the capital type of markets that deals with the issuance of new securities where as the secondary market is the financial type of market for trading securities that have been issued in a public and private offering.

The market for long term investment funds are generally in the form of bonds, stocks and many more. It is not a compact type of unit, but it is highly decentralized system which is made up of three parts like the stock market, the money market and the bond market.

A capital market is that type of market where the government and companies can raise the long- term funds for the securities. It is normally listed on a company's balance sheet. Capital is generally on the basis of one or three factors of production. The others are labor land or entrepreneurship, management and organization.

The main features of the capital markets are:

It is not used up immediately in the process of production unlike the intermediate goods and the raw material.

It can be used in the production of other goods.

It was produced in a contrast to the land which refers to the naturally occurring resources such as the minerals or geographical locations.

Capital market is generally on the basis of one or three types of factors of the production. The others are labor land, management or organization.

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