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

The capital market is just one of the market forms. The market consists of sellers and buyers, sometimes in physical space, such as farmers' markets or large shopping malls, and sometimes in electronic environment. The financial market is the market where financial products are traded. For example, the money market has established the mutual parity of currencies of various countries, and market participants can meet their needs or make investments by trading various currencies. Similarly, commodity futures market and capital market are also designed to meet the different financial needs of buyers and sellers.

Extended data:

The difference between money market and capital market;

Money market, also known as short-term capital market, refers to the market where financial assets are traded within one year. Treasury bills, commercial bills, bank acceptance bills, negotiable certificates of deposit, repurchase agreements, etc. They all belong to money market tools, and the money market has the characteristics of good liquidity and low risk.

Capital market, also known as long-term capital market, refers to the market where financial assets are traded for more than one year. Stocks, bonds, funds, etc. They all belong to capital market tools, and the capital market has the characteristics of large specific risks and long investment cycle.

The difference between spot market and futures market;

Simply put, it is to buy and sell physical objects in the spot and futures contracts in the futures market. Therefore, the difference between spot market and futures market is as follows:

1, the transaction mode is different: in short, both the buyer and the seller think that the transaction can be concluded. However, the purpose of the futures market is not to get the real thing, but to worry about the future rise and fall of the spot, so it can be hedged or arbitrage.

2. trading places is different: the futures trading market is flexible and changeable, which is not affected by the trading time and place, and can be traded at any place. However, futures can only be traded on futures exchanges, and futures trading must be conducted in an open and centralized manner according to law. China Commodity Futures Exchange is owned by Dalian Commodity Futures Exchange and Zhengzhou Commodity Exchange.

3. Different guarantee methods: spot transactions are protected by contract law, but the futures market implements the margin system. If you don't exercise your rights according to the contract at maturity, you will lose the deposit.

The difference between bond market and stock market;

1, with different risks: the risk in the bond market is small; The stock market is risky;

2. Different trading objects: bonds are traded in the bond market; Buying and selling stocks in the stock market;

3. Different repayment: the bond market needs to repay the principal and interest after issuing bonds; There is no need to repay the principal after the stock market issues shares;

4. Different issuers: The issuers of the bond market can be countries, governments and social organizations. The issuer of the stock market can only be a listed company.