The capital market is a financial market for trading in, long-term financial assets. It is a market for long-term loans and investments. It consists of people and organizations who wish to lend out money or to borrow on a long-term basis.

A confederal government is a form of government in which power is concentrated in the state or regional governments. This implies that the member-states of a confederation are more powerful than the central government. In any political system where the states are sovereign, the result is a confederation.