which markets do firms use to raise capital 
companies that raise equity capital can seek private placements via angel or venture capital investors however they re able to raise the largest amount through an initial public offering ipo when shares are listed publicly on the stock market for the first time debt capital can be raised through bank loans or securities issued in the bond market the bottom linecapital markets are a very important part of the financial industry they bring together suppliers of capital and those who seek it for their own purposes this can include governments that want to fund infrastructure projects businesses that want to expand and even individuals who want to buy a home capital markets are divided into two categories the primary market where companies list new issues for the first time and the secondary market which allows investors to purchase already issued securities the key benefit of these markets is that they allow money to move from those who have it to those who need it for their own purposes 