Capital Markets: National and InternationalCapital markets involve two parties in the middle of a financial process. There are domestic markets (markets in the United States) and foreign markets (internationals such as Japan and China) in which investors place a lot of confidence. The term capital market is the market for securities and where companies and governments raise funds for the long term, usually more than a year. The market itself includes the stock market and the bond market. The capital market also includes the primary market (new issues are distributed to investors) and the secondary market (currently claimed securities are traded). Without a financial market in place, borrowers would have a very difficult time finding lenders. Capital markets promote and keep capitalism alive. Markets are a fundamental element of the economies of many countries and the larger the markets, the greater the potential for economic growth. It allows consumers and businesses to have a share in the nation's wealth. The availability of different ways to raise the necessary money is attractive because they can continue to find new sources of money over time. The objective of the markets is to increase investor confidence through more active participation. Markets require a free flow of information to function smoothly and efficiently, and the Internet can be used for up-to-date trading information. According to Wikipedia, the capital market is the market for securities, where companies and governments can raise long-term funds. The capital market includes the stock market and the b...... middle of paper ......rom http://en.wikipedia.org/wiki/Tokyo_Stock_ExhangeStocks Basics: Different types of stocks. (2008). In Investopedia [Web]. Investopedia ULC. Retrieved 09/11/2008 from http://www.investopedia.com/university/stocks/stocks2.asp(2005). Stock exchanges and commodities. Retrieved September 11, 2008, from Answers.com: http://www.answers.com/topic/securities-and-commodities-exchangesHayes, Samuel (2008). Understanding Capital Markets with Professor Samuel L. Hayes. Retrieved September 11, 2008, from the Path to Investing website: http://www.pathtoinvesting.org/experts/capmkts/capmkts_011.htm(2008). United States Securities and Exchange Commission. Retrieved September 11, 2008, from the U.S. Securities and Exchange Commission website: http://www.sec.gov/