Last updated on Oct 9, 2024

What is the role of capital markets in the economy?

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Capital markets are the places where businesses and governments raise funds by issuing securities, such as stocks, bonds, and derivatives. They play a vital role in the economy by facilitating the allocation of capital, the transfer of risk, and the provision of liquidity. In this article, you will learn about the main functions and benefits of capital markets, as well as the challenges and risks they face.

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