When Bilal Basrai helps his clients to purchase or sell debt
instruments, he does so on the capital market. A capital market is
essentially a platform that allows various types of investors to
exchange money with businesses or individuals that need the capital. In
some cases, this could also mean the federal government. The two most
common groups of investors are those from the retail and institutional
fields.
In any economy, a capital market is vital to the overall
health and functioning of the country. Especially is capitalist
countries, the ability to trade capital is key. Both primary and
secondary markets are included in the whole capital market. A primary
market is the place where new stocks and bonds are sold to the many
different investors.
In the secondary market, the stocks and bonds sold
are from existing companies. Capital markets only deal with the two
financial instruments of equity securities and debt securities. An equity security in this case would be a stock, and a debt security would
be a bond.
The financial instruments that are sold or traded are
meant to be medium or long term investments, lasting at least one year.
Stocks and bonds that are traded or sold quickly are not a part of the
capital market.
Bilal Basrai understands the inner working of the
capital markets.
