Capital markets direct money from investors looking for opportunities to companies seeking funding. Companies can seek two forms of capital — equity or debt. Investors also come in two types — retail and institutional. As well, there are two types of capital markets — primary and secondary. The primary market is where new securities are issued and sold. The secondary market is where existing securities are sold. The most common capital markets are stock exchanges and the bond market. In its most basic form, a capital market is a venue for trading financial instruments.