Capital markets are financial markets where long-term debt or equity-backed securities are bought and sold. These markets facilitate the flow of funds between investors and borrowers, helping to allocate resources efficiently and provide opportunities for investors to earn returns on their investments. Some examples of capital markets include stock exchanges, bond markets, and derivatives markets. Participants in capital markets include individual investors, institutional investors, corporations, governments, and financial institutions. The efficiency and functioning of capital markets are crucial for the overall health of an economy as they provide a means for raising capital for businesses to grow and create jobs.