A capital market is a financial market where long-term debt or equity securities are bought and sold. It serves as a platform for companies and governments to raise funds for various projects and operations by issuing stocks and bonds. Investors, in turn, can purchase these securities to earn returns on their investments. The capital market is divided into two main segments: the primary market, where new securities are issued, and the secondary market, where existing securities are traded. Key participants in this market include investors, financial institutions, and regulatory bodies, all of which play a crucial role in ensuring market efficiency and stability.