The part of the financial market where medium- and long-term capital is traded. For example, stocks and bonds are issued and traded here in order to finance investments.
example
Unternehmen beschaffen sich über den Kapitalmarkt Geld für große Investitionsprojekte.
Companies raise money through the capital market for large investment projects.
Usage tips
Compound word
The word is a compound of 'Kapital' (capital, assets) and 'Markt' (market). So it literally refers to a market where long-term capital is traded.
EXAMPLE
Der Zustand des Kapitalmarktes beeinflusst die gesamte Wirtschaft.
The condition of the capital market affects the entire economy.
Register
'Kapitalmarkt' (capital market) is a technical term from economics and finance. It is mainly used in formal or professional contexts.
EXAMPLE
In den Wirtschaftsnachrichten wurde über die Entwicklung am Kapitalmarkt berichtet.
The business news reported on developments in the capital market.
Fixed preposition
This noun is almost always used with the preposition 'an' in the dative: 'am Kapitalmarkt' (on/in the capital market). Typical verbs are 'investieren' (to invest), 'handeln' (to trade), or 'sich Geld beschaffen' (to raise money).
EXAMPLE
Viele Anleger investieren ihr Geld am Kapitalmarkt.
Many investors invest their money in the capital market.
Compare with
near_synonym · confusable
Kapitalmarkt vs Börse
stock exchange / market / purse
'Börse' and 'Kapitalmarkt' both belong to the world of money, stocks, and bonds. 'Börse' means an organized market or place where securities are traded. 'Kapitalmarkt' is broader and more abstract: it describes the whole area in which companies or states raise long-term money and investors invest. So a stock exchange is an important part of the capital market, but not the entire capital market. Learners may confuse the words because both often appear in financial news. For concrete trading, you are more likely to say 'Börse'; for the overall financial system, 'Kapitalmarkt' is more likely.
Kapitalmarkt
Viele Firmen nutzen den Kapitalmarkt, um Geld für neue Projekte zu bekommen.
Many companies use the capital market to get money for new projects.
Börse
Nach der schlechten Nachricht sind die Kurse an der Börse stark gefallen.
After the bad news, prices on the stock exchange fell sharply.