This chapter helps the reader to understand the nature of capital markets with a special focus on emerging markets and to know the terminology and basic structure of a bond issue. It also helps to understand stocks and stock markets from a domestic and international perspective and to know the basics of how banks make money and the effects of regulations. Financial institutions involved in shadow banking will often provide loans at higher interest rates. Just as with bonds, MNCs in need of capital can issue stock or equity in their company, in their own countries and also in foreign countries. There is an alternative way for companies to list on foreign exchanges and sell equity in their companies without actually selling stock directly. The American Depository Receipt (ADR) is the way most foreign companies trade their stock in the US. Global Depository Receipts (GDRs) are like ADRs, except that they are traded in several countries at once.