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What Is The Difference Of Capital Market And Money Market?

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    The capital and the money markets are two types of financial markets. The primary difference between the two is that if the organizations have to borrow or invest funds for a longer period of time then they go in the capital markets and if they want to borrow or invest funds for a short period of time then they go for the money markets. Secondly, capital markets deal with stocks and bonds while money markets deal with  certificates of deposits, bankers' acceptance, repurchase agreements and commercial paper. Thirdly, there are more speculations in the capital market as compare to the money market because capital market offers high maturity on the credit instruments. Moreover, higher returns are paid on the securities traded in the capital market as compare to the money market because of the high risk in capital markets.
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    Amber22  

    answered 9 months ago

    Can u please explain more about the term speculation with reference to money market and capital market .
    I could not pick ur point ........
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    Nauman715

    Nauman715

    commented 8 months ago

    Great answer but more explainatin is needed
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    Bhim

    Bhim

    commented 7 months ago

       Capital Markets:
      - Large amounts
      - Long term
      - Debt and equity
      - Bond and shares

       Money Markets:
      - Short term
      - DEBT finance only
      - Instruments must be liquid and negotiable
      0 0
      Guest

      Guest  

      answered 8 months ago

        Difference between money market and capital market
        0 0
        Guest

        Guest  

        answered 4 months ago

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