The capital market is the market for long-term loans (debt) and equity capital. Companies can issue either debt or equity. Governments issue debt. National debt securities are often referred to as treasury instruments, while those issued by state and local governments or agencies are known as municipal.
The capital market includes the stock market, the bond market, in both primary and secondary market types. Securities trading on organized capital markets is monitored by the government; new issues are approved by regulatory authorities of financial.