Capital Market A capital market is a market for securities (debt or equity), where _ business enterprises (companies) and governments can raise long-term funds. The capital market includes the stock market and the bond market. Business units and corporate are the borrowers in the capital market. Capital market can be classified into primary and secondary markets.Brazil Capital Market Development of Brazil capital Market. The era before the 1960's, when capital markets were practically non-existent. The year of 1965 as a key turning point, with the approval of a Capital Market Law and the creation of the Brazilian Central Bank . A new phase of reconstruction beginning in 1976, when the new Brazilian government considered the capital market as an instrument essential for economic and social development. The evolution from 1976 to today, affected primarily by the increasing importance of foreign investors, institutional investors, a low incentive for companies to go public, and strong and unfair competition of debt instruments due to high inflation and high interest rates.