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The capital market is a financial market where long-term debt or equity-backed securities are bought and sold. It is a platform where companies and governments can raise long-term funds by issuing securities, such as stocks and bonds, to investors. These securities are then traded on stock exchanges or over-the-counter markets. The capital market plays a crucial role in the economy by facilitating the flow of capital from investors to businesses and governments, enabling them to finance new projects, expand operations, and create jobs. It also provides investors with the opportunity to earn returns on their investments through dividends, interest payments, and capital gains. Overall, the capital market is an essential component of the financial system, contributing to economic growth and development.