DCM=Debt Capital Market (Debt Capital Market) ECM=Equity Capital Market (Equity Capital Market) Extended information: 1) The capital market, also called the long-term capital market, is a financial market relative to the money market (short-term capital market)

, usually refers to a place where financial instruments are traded for more than one year, including the stock market, bond market and long-term credit market.

Financiers and investors are the main participants in the capital market. Together with intermediaries and management agencies, their mutual constraints and interdependence constitute the complete connotation of the capital market.

The history of commercial banks operating capital for enterprises is much earlier than the stock market and bond market.

Banks accumulate small amounts of funds from all aspects of society and invest them in enterprises.

In the Netherlands at the beginning of the 17th century, paper money was not widely used, so banks obtained physical currency from depositors, accumulated the physical currency, and invested or loaned the money to a company in the form of physical currency.

2) The main characteristics of the capital market are: 1. Long financing period.

At least more than 1 year, it can be as long as decades, or even without an expiration date.

2 Liquidity is relatively poor.

Funds raised in the capital market are mostly used to solve medium- and long-term financing needs, so liquidity and liquidity are relatively weak.

3 The risk is high but the return is high.

Due to the long financing period, the possibility of major changes is also high, market prices are prone to fluctuations, and investors need to bear greater risks.

At the same time, as a reward for risk, its returns are also higher.

In the capital market, fund suppliers are mainly savings banks, insurance companies, trust investment companies, various funds and individual investors; while fund demanders are mainly enterprises, social groups, government agencies, etc.

Its trading objects are mainly medium and long-term credit instruments, such as stocks, bonds, etc.

The capital market mainly includes medium and long-term credit markets and securities markets. 3) Debt capital: The capital structure of traditional financial concepts includes equity capital and debt capital.

Debt capital refers to short-term and long-term loans provided by creditors to enterprises, excluding commercial credit liabilities such as accounts payable, notes payable and other payables.

Using debt capital can reduce a business's cost of capital.

From an investor's perspective, the risk of equity investment is greater than that of debt investment, and the required rate of return will increase accordingly.

Therefore, the cost of debt capital is significantly lower than equity capital.

Reasonably increasing the debt financing ratio within certain limits can reduce the company's comprehensive capital cost.

Characteristics of debt capital: Debt capital is the foreign aid capital commonly used by Western banks in the 1970s.

But after the Basel Accord in the 1980s, debt capital could only be used as supplementary capital.

The right of repayment of debt capital is second only to that of depositors.

There are two main categories of debt capital: capital bonds and capital notes.

Debt Capital has three main characteristics: first, the cash outflow term structure requirements for debt repayment of principal and interest are fixed and clear, and the legal responsibilities are clear; second, the income from debt capital is fixed, and creditors cannot share the higher risks of corporate investment

The excess returns brought about by investment opportunities; thirdly, debt interest is expensed before tax, which can reduce financial burdens on the condition that accounting books are profitable.