"Leveraging" in the capital market is to use principal to leverage more available funds for investment and profit. To put it more clearly, it is to obtain through various methods such as mortgages, loans, and borrowings. More funds to engage in a certain undertaking (such as stock trading or opening a store) in order to obtain more profits

The capital market (capital market), also known as the long-term capital market, is an important part of the financial market. As a theoretical concept corresponding to the money market, the capital market usually refers to the market for medium- and long-term (more than one year) fund (or asset) lending and financing activities. Since long-term financial activities involve long-term funds, high risks, and long-term stable income, similar to capital investment, it is called the capital market.

Essentially, capital is wealth, usually in the form of money or physical property. There are two main types of people in the capital market: those looking for capital, and those providing capital. Those looking for capital are usually industrial and commercial enterprises and governments; those providing capital are those who hope to make a profit by lending or purchasing assets.

Capital, in the economic sense, refers to the basic production factors used for production, that is, capital, factories, equipment, materials and other material resources. In the fields of finance and accounting, capital is usually used to represent financial wealth, especially financial assets used for doing business and setting up enterprises. In a broad sense, capital can also be used as a general term for various social and economic resources for human beings to create material and spiritual wealth.

The capital market is only one of the market forms.

Markets are made up of sellers and buyers, sometimes in a physical space, such as a farmer's market or a large shopping mall, and sometimes in an electronic environment. Financial markets are markets where financial products are traded. For example, the currency market establishes mutual price comparisons for currencies of various countries, and market participants trade various currencies to meet their needs or make investments. Similarly, commodity futures markets and capital markets are also designed to meet the different financial needs of both parties involved in buying and selling.

The contract period for capital transfer in the capital market is generally more than one year. This is the difference between the capital market and the short-term money market and derivatives market.

The capital market can be divided into primary market and secondary market:

In the primary market, new capital-absorbing securities are issued and demanded by investors.

Securities that have been issued change hands in the secondary market.

If a market meets the requirements of a stock exchange, it is an organized capital market. Generally speaking, organized markets such as time and location can improve market liquidity and reduce transaction costs, thereby improving the effectiveness of the capital market.