This document defines and describes capital markets. It discusses that capital markets are financial markets for buying and selling long-term debt or equity securities to channel wealth from savers to long-term investments. It notes there are two types of capital markets: primary and secondary. The primary market deals with new security issuance, while the secondary market is where previously issued securities are traded. Some capital market instruments are listed as equity, bonds, and derivatives. Market risk and credit risk are also highlighted as capital market risks.