Capital markets, on the other hand, are designed to provide long-term funding for corporations and governments. The main purpose of the capital market is to facilitate the sale of equity and debt securities to investors. Capital markets: The capital market is a long-term debt and equity market where securities with maturities of more than one year are traded. The key participants in the capital market are corporations, investors, and financial institutions.The most common securities traded on the capital market in Zambia include: Shares: These are equity securities that represent ownership in a company. Shares are bought and sold on the Lusaka Stock Exchange. Bonds: These are long-term debt securities issued by corporations or governments. They typically have a maturity of more than one year and pay a fixed or variable rate of interest. Derivatives: These are financial instruments whose value is derived from an underlying asset, such as a stock, bond, or commodity. Exchange-traded funds (ETFs): These are investment funds that are traded on a stock exchange, and their value is based on a basket of stocks, bonds, or other assets. Mutual Funds: An investment vehicle that pools money from multiple investors to invest in a diversified portfolio of securities. In summary, money markets and capital markets serve different purposes, with money markets providing short-term funding and capital markets providing long-term funding. The securities traded on each market in Zambia differ in terms of their maturity, risk, and purpose. Understanding the differences between these two markets and the securities traded on each can help investors make informed investment decisions.