This primer provides an overview of how capital markets function and their importance to the U.S. economy.
- Broadly speaking, capital is cash used for operational or investment purposes. Capital is critical to corporations for running day-to-day business operations or financing future growth. Companies need capital to turn ideas into usable innovations, and governments need capital to operate their country, state, or city. Therefore, capital is an integral component supporting job creation and economic development.
- Capital markets are essential for connecting investors with companies and governments seeking funds for growth and development. Through markets like stocks and bonds, businesses can raise money for expansion, and municipalities can fund important public projects.
- This primer helps us understand how investment in capital markets drives economic progress and offers an overview of the three phases of capital markets.