A capital market is a market for securities (debt or equity), where governments and business enterprises (companies) can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets (e.g., the money market). The capital market includes the stock market (equity securities) and the bond market (debt). Financial regulators, such as the UK's Financial Services Authority (FSA) or the U.S. Securities and Exchange Commission (SEC), oversee the capital markets in their designated jurisdictions to ensure that investors are protected against fraud, among other duties. In today's highly institutionalized and globalized financial markets (not to mention inter-connected markets), careful and progressive development and regulation of capital markets by developing countries and emerging economies will provide a major impetus to sustaining their development efforts and economic growth. This foundation course on capital market development and regulation provides a holistic overview of the institutions and challenges facing developing and emerging economies relating to their financial sector development. This course will discuss the major building blocks of an effective capital market and the policy environment needed to help in its development. More importantly, this course draws on lessons from the global economic and financial crisis and leverages the discussion board to provide practical hands-on advice to participants relating to their particular reality.The course will also include issues related to the growing interaction of emerging markets with developed capital markets.