What is a capital market, in simple terms?
A capital market is where long-term securities such as shares and bonds are issued and traded, channelling savings to companies and governments that need capital.
A capital market is a marketplace for long-term securities — mainly shares (equity) and bonds (debt). Companies and governments raise money by issuing these securities; investors buy them hoping for a return.
Ethiopia's Capital Market Proclamation defines it directly: a market where securities such as shares, bonds, derivatives or other related instruments are bought and sold.
It differs from the money market, which trades short-term debt (such as Treasury bills maturing in under a year). The capital market funds long-term investment and lets ordinary savers share in companies' growth.
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Educational information drawn from official ECMA, ESX and NBE documents — not investment or legal advice. For the authoritative, current detail, open the sources above or ask Mehaleq.