The capital markets

The purpose of this paper is to first introduce what capital markets are and then break them down between primary and secondary markets. Secondly, we will explore and differentiate between money markets and capital markets, which together make up the financial market. The first part of the paper is designed to give a sound understanding of the capital markets, so that the latter part of the paper can explore real-time issues within the capital markets. After exploring what the capital markets look like, we will delve into what a perfect capital market would look like in theory then use that framework to explore market imperfections. In the real world, the capital markets are not perfect, so it is important to explore what the implications for an imperfect market are.