What is the meaning of a global capital market?

A

global capital market

is the interlinking of various investment exchanges around the world that enable individuals and entities to buy and sell financial securities on an international level.

The interlinking of these various exchanges results in the emergence of an informal, but never-the-less structured global capital market. Spurred by the decoupling of exchange controls and foregoing of adjustable peg exchange rates from individual capital markets, in addition to technological advances that have facilitated the movement of capital around the world, investors have increasingly sought investments in multiple currencies.

While equities still lag behind, other investments, such as bonds, currencies and foreign exchanges, are all interlinked and highly visible in international trading.

As the complexity and interlinking of the global economy grows, the capital markets follow. Currently, financial institutions around the world transfer billions of dollars worth of assets and investments on a daily basis in cross border exchanges.