Glossary Background

Equity Capital Markets

Equity Capital Markets (ECMs) refer to the platform where companies raise capital by offering equity shares to financial firms, institutional investors, and retail investors. This fundraising process is commonly done through methods like private placements or Initial Public Offerings (IPOs) in the primary market, which is a key part of the ECM. Some of the largest IPOs in India are conducted within the ECM. The secondary market of the ECM is where shares, futures, options, and other financial instruments are traded. A prime example of this secondary market is the stock market, where existing securities are bought and sold.