The capital market is a financial market in which: only derivative securities are traded none of the other alternatives is correct only short-term debt securities are traded only government securities are t
Question
The capital market is a financial market in which: only derivative securities are traded none of the other alternatives is correct only short-term debt securities are traded only government securities are t
Solution
The capital market is a financial market in which long-term debt or equity-backed securities are bought and sold. These are markets for long term funds with maturity time of more than one year. So, none of the alternatives provided in the question is correct. The capital market includes the stock market and the bond market. Financial regulators, such as the UK's Financial Conduct Authority (FCA) or the U.S. Securities and Exchange Commission (SEC), oversee the capital markets in their designated jurisdictions to ensure that investors are protected against fraud.
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