Capital markets are venues where savings and investments are channeled between the suppliers who have capital and those who need capital. The entities that have capital include retail and institutional investors while those who seek capital are businesses, governments, and people. Capital markets are composed of primary and secondary markets. The most common capital markets are the stock market and the bond market. Capital markets seek to improve transactional efficiencies. These markets bring those who hold capital and those seeking capital together and provide a place where entities can exchange securities. Capital markets refer to the places where savings and investments are moved between suppliers of capital and those who need capital.