Capital markets are financial markets that facilitate the buying and selling of long-term securities, such as stocks, bonds, and other financial instruments, to raise capital for companies and governments. These markets provide a platform for businesses to raise funds to finance their operations and growth, and for investors to invest their capital in return for potential returns on their investments.

Capital markets also include a variety of financial institutions and intermediaries, such as investment banks, stock exchanges, and brokers. These institutions play an important role in facilitating transactions and providing market information and analysis.

One of the key trends in capital markets is the increasing use of technology to improve efficiency and transparency. Electronic trading platforms, algorithmic trading, and other technological advancements are transforming the way capital markets operate and increasing access to these markets for investors.

Another trend in the capital markets is the increasing focus on sustainability and responsible investing. Investors are increasingly interested in investing in companies that have strong environmental, social, and governance (ESG) practices, and capital markets are responding with the development of ESG-focused investment products and disclosure requirements.

Capital markets also face challenges related to market volatility, regulatory compliance, and cybersecurity risks. In addition, the COVID-19 pandemic has had a significant impact on capital markets, causing significant volatility and disruption in global financial markets.