Capital markets provide for the buying and selling of long term debt or equity backed securities. Whenthey work well, the capital markets channel the wealth of savers to those who can put it to long termproductive use, such as companies or governments making long term investments. Capital Marketsallow businesses to raise long-term funds by providing a market for securities, both through debt andequity. Capital markets offer a whole range of complicated products which allow businesses and banksnot just to raise capital but also to 'hedge' (protect) against risks.