What Is Capital Market?

The project "Capital Market Support Program" is funded by the European Union under the DIGITAL RE4M Program and implemented by the EBRD's Capital & Financial Markets Development team to support the development of Georgia's capital market. This program will include both instructional content and activities to enhance capital market awareness.

What Is Capital Market?

Capital markets are where savings and investments are transferred between providers (people or institutions with capital to lend or invest in) and those in need. Banks and investors are examples of suppliers, whereas corporations, governments, and people are examples of those looking for funds.

There are two types of capital markets: primary and secondary markets. The stock market and the bond market are the two most frequent types of capital markets.

The primary capital markets are where new securities are issued and sold. The secondary market is where previously issued securities are exchanged between investors.

The capital market exists to promote transaction efficiency by facilitating the safe exchange of assets.