Capital markets are financial markets where long-term debt or equity securities are bought and sold. They play a crucial role in the economy by enabling companies and governments to raise funds for various projects and operations. Investors, such as individuals and institutions, participate in these markets to earn returns on their investments. There are two main types of capital markets: primary and secondary. In the primary market, new securities are issued and sold to investors, while the secondary market involves the trading of existing securities. Key participants in capital markets include investors, issuers, and financial intermediaries.