What's the difference between capital market, stock exchange and stock market and what is its translation?
Capital market is the most general of the three tems. It is used to refer to financial markets where mid-term and long-term financial assets are traded. Mostly, it trades company shares quoting in the Stock Exchange. Capital markets are formed by different institutions: stock exchange, issuing bodies, intermediaries, investors, etc. The term capital market in Spanish is mercado de capitales.
In the stock exchange are listed and traded products or negotiable securities such as shares, bonds, foreign currency, derivatives and commodities. They also provide the requirements for the quotation of negotiable securities, authorize and cancel quotations, and record quotations. This term is translated into Spanich as bolsa de valores o bolsa de comercio. Those who operate in the stock exchange are stock brokers.
The stock market is a type of capital market and has a more operative role since it is where negotiable securities are traded. Stock markets register, monitor and redeem all the operations carried out by investors and shareholders. In Buenos Aires, the Mercado de Valores de Buenos Aires S.A. (Merval), subject to the stock exchange, acts as the central counterpart to all the operations that it warranties, administering risks associated to different operations and instruments authorized to be traded. The Merval index is thought to be the most important stock market in Argentina and sets the value of certain companies which quote its shares in the stock exchange. Its translation is mercado de valores.
In Argentina, the stock market and the stock exchange are supervides by the Comisión Nacional de Valores - CNV. Whereas in the USA they are ruled by the Securities and Exchange Commission - SEC.