Those who seek capital in this market are businesses, governments, and individuals. They seek to improve transactional efficiencies by bringing suppliers together with those seeking capital and providing a place where they can exchange securities. Capital markets are composed of primary and secondary markets. The most common capital markets are the stock market and the bond market. It is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold,
The U.S. Securities and Exchange Commission (SEC) oversee capital markets to protect investors against fraud, among other duties.