Definition for : Market-based economy
In a Market-based economy, companies cover most of their financing needs by issuing financial securities (shares, bonds, Commercial paper, etc.) directly to Investors. Thus, a Market-based economy is characterised by direct solicitation of Investors' funds. Also called Capital market economy.
(See Chapter 15 The financial markets of the Vernimmen)
To know more about it, look at what we have already written on this subject