What are capital markets and what are they for?

This article considers what capital markets are, and what they are for. It does so to provide a basis for two further separate articles contained in this issue, the first by Lachlan Burn relating to law and regulation in the EU, and the second by Ed Greene relating to that of the USA. The article makes the point that, before discussing how capital markets should be regulated, it is necessary to decide on the objectives that society wants those markets to achieve. Without clear objectives, there is a risk that law and regulation may inadvertently impede, or even preclude, activities that are useful to society. © 2017 Author.