Which market is known for issuing and trading stock and bonds?

The capital market is recognized primarily for the issuance and trading of long-term securities such as stocks and bonds. Companies and government entities use this market to raise long-term funds; for example, corporations issue stocks to gain equity financing and bonds to secure debt financing. The capital market serves as a platform for investors to buy and sell these financial instruments, which represent ownership in companies or loans made to entities.

In contrast, the money market deals with short-term borrowing and lending, typically involving instruments that have maturities of less than one year, such as Treasury bills or commercial paper. The forex market focuses on the trading of currencies, allowing traders to buy and sell different currencies based on exchange rates. Lastly, the commodities market is centered on the trading of physical goods like oil, gold, and agricultural products, rather than financial securities. Thus, the capital market is the distinct market that specializes in the issuance and trading of stocks and bonds.