Equity Capital Markets Definitionfor equity instruments, such as shares and stock. It is a type of securities market. The other main types of securities markets are the debt capital markets and the derivatives markets.
The equity capital markets can be further divided into the primary market and the secondary market. The primary market is where new issues are first offered to the public. The secondary market is where existing securities are traded between investors.
The equity capital markets play an important role in providing companies with the capital they need to grow and expand their businesses. They also provide investors with an opportunity to profit from the growth of these companies.