Final answer:
In the capital markets, common stocks, preferred stocks, and corporate bonds are traded as they are long-term investments. Treasury bills are typically short-term and traded in the money markets, while certificates of deposit can be either short-term or long-term, depending on their maturity.
Step-by-step explanation:
The instruments traded in the capital markets primarily include long-term securities. Among the options provided, common stocks, preferred stocks, and corporate bonds are commonly traded in the capital markets because they are long-term investments. Treasury bills (T-bills) and certificates of deposit (CDs), on the other hand, can have various maturities, but T-bills are mainly short-term securities typically issued with maturities of one year or less and thus are primarily traded in the money markets, while CDs can be either short-term or long-term.
Capital markets are venues for the trading of long-term financial assets such as stocks and long-term bonds, which can extend beyond one year. This contrasts with money markets, which deal with short-term lending and borrowing, usually for maturities of less than one year. The instruments listed provide a range of options for investors with different risk profiles and investment horizons.