Capital markets are financial markets where individuals and institutions can buy and sell securities, such as stocks and bonds. These markets help companies raise funds to grow their businesses by issuing shares or debt. Investors, in turn, can earn returns on their investments by purchasing these securities, making capital markets essential for economic growth. In capital markets, there are two main types: primary and secondary markets. The primary market is where new securities are created and sold for the first time, while the secondary market is where existing securities are traded among investors. Together, they provide liquidity and opportunities for investment.