Capital Markets are a type of financial market through which money and other financial assets are exchanged among different economic agents.

The main purpose of Capital Markets is to intermediate between economic agents with surplus (excess of money) and those with deficit. It is the place where economic agents demand or offer financial assets. In addition, they provide liquidity to the assets.

Additionally, Capital Markets establish prices which, joined together with those expressed before, reduce transaction costs and periods in the intermediation.

The most important Capital Markets are situated in famous cities such as New York and Tokyo.