A capital market is not a marketplace in the sense of a physical place, such as a trading floor with people waving their arms and trading in securities. It refers instead to the vast amount of capital available from financial institutions, pension funds, and investment funds (and a few high-net-worth individuals) who want to buy securities either to hold as an investment or to trade. Just like other realms of business, there are various laws that come to play in the securities marketplace. Legal practitioners come in to ensure that the key players adhere to the laws by advising them on what is required of them to ensure compliance.
