"Capital markets" is a broad term for the markets in which buyers and sellers link up to exchange financial securities. Generally though, capital markets are the markets where investors can purchase equity securities, or stocks, and fixed-income securities, or bonds, from companies and government entities. In Canada, the Toronto TSE 300 (TSX) represents the largest capital market in the country and the seventh-largest in the world with respect to market capitalization.
Capital markets can help your small business achieve financial success, or they can help your investments earn extra income. Your company can buy stocks or bonds as an investment, or investors can buy shares of your company to see a return on their investment.