Capital markets act as the financial engine of the global economy. When companies want to grow—by building new products, expanding to new regions, or hiring—they raise money through capital markets. They may issue stocks to raise equity or bonds to borrow directly from investors. Governments use capital markets too, selling bonds to fund infrastructure, services, and economic programs.
These markets include both primary markets, where new securities are issued (such as IPOs or new bond issuances), and secondary markets, where existing securities are bought and sold on exchanges like the NYSE, NASDAQ, LSE, or SIX Swiss Exchange. Secondary markets are essential because they create liquidity, allowing investors to buy or sell at any time without waiting for a specific counterparty.
Capital markets bring together banks, investment funds, traders, exchanges, regulators, and everyday investors. Prices are driven by interest rates, economic data, earnings, risk appetite, and global conditions. Because capital markets allow money to flow efficiently to productive businesses and projects, they support innovation, job creation, and long-term economic growth.
Capital markets matter because they provide the funding that businesses and governments need to grow. They also give investors opportunities to build wealth, diversify, and participate in the success of organizations around the world.
Primary markets allow companies or governments to raise fresh capital by issuing new securities. Secondary markets then provide a venue for investors to trade those securities with each other. This structure creates liquidity, which makes investing more attractive because securities can be bought or sold easily at market prices.
Interest rates influence borrowing costs, investment decisions, and the value of future earnings. When rates rise, borrowing becomes more expensive and investors demand higher returns, which can push stock and bond prices lower. When rates fall, cheaper financing supports business growth and often boosts asset prices across the capital markets.
Capital markets channel money into productive uses. Businesses raise funding to innovate, hire employees, and expand operations. Governments finance infrastructure, schools, and public services. These investments stimulate economic activity, improve efficiency, and raise living standards over time.
A renewable-energy company issues bonds to fund the construction of a new solar farm. Investors purchase these bonds through capital markets, providing the company with the financing it needs. Once the bonds begin trading on the secondary market, investors can buy and sell them freely.
FinFeedAPI’s Stock API is the best match for capital markets because it provides historical data on equities—one of the core instruments traded in global capital markets. Developers can use this data to build investment tools, market dashboards, research platforms, and analytics systems focused on stocks and broader market activity.
