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.