Which of the following is true about capital markets?

Capital markets are essential components of the financial system, primarily focused on the buying and selling of long-term securities, which typically include stocks and bonds. This market allows businesses and governments to raise funds for long-term investments, such as infrastructure projects or expansion efforts, by issuing securities that investors purchase.

The long-term nature of capital markets distinguishes them from money markets, which are more focused on short-term financing, providing a space for institutions to finance their short-term liabilities through instruments like treasury bills or commercial paper. The instruments traded in capital markets generally have maturities longer than one year, making option B accurate in highlighting their primary feature.

Additionally, capital markets encompass both equity (stocks) and debt (bonds) securities. Hence, the assertion in option C that capital markets do not include bonds is incorrect, as bonds play a significant role in these markets. While the accessibility of these markets can vary, they are not exclusive to large corporations, as smaller companies and even some individuals can also participate in capital market transactions, thereby making option D misleading as well.