Wednesday, 20 June 2018

7 Difference Between Capital Market and Money Market

1. Money market is a segment of the financial market where lending and borrowing of short term securities are done. Capital market is a section of financial market where long term securities are issued and traded.

2. Risk Factor Money Market: Low Capital Market: Comparatively High

3. Financial instruments: Money Market: Treasury Bills, Commercial Papers, Certificate of Deposit, Trade Credit etc. Capital Market: Shares, Debentures, Bonds, Retained Earnings, Asset Securitization, Euro Issues etc.

4. Return on Investment Money Market: Less Capital Market: Comparatively High

5. Liquidity Money Market: High Capital Market: Low

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