Difference between Capital Market and Money Market with its comparison chart

In this article we will discuss about Capital Market and Money Market, Also discuss about their difference and comparison chart Capital and Money Market. we will study Difference between Capital Market and Money Market with its comparison chart.

Difference between Capital Market and Money Market with its comparison chart

Capital Market: Firstly we will discuss about the capital market.

Capital Market is a place where long term funds are raised through trade on debt and equity securities. Capital Market also known as securities market and it deals in long term loan. It supplies with fixed and working capital and long term and medium term borrowing. In capital market investors deals in financial instruments

so we studied Capital Market in detail and now we will see what is Money Market.

Money Market

Money market is a place where Short term funds are traded with short time period and short maturity period. Money market is known as short term market in which fund is lending and borrowing for the period of one year or less. The financial instruments which help in money market are Treasury Bills, Commercial paper, Certificate of Deposits, etc.

Comparison Chart of Capital Market and Money Market

           Basis

 Capital Market

       

  Money Market

          Meaning Capital Market is a place where long term funds are raised through trade on debt and equity securities. Money market is a place where Short term funds are traded with short time period and short maturity period.
    

       Another name

Securities market

Short term market

       Risk

High risk involved

Low risk

      Nature of Market

Formal

Informal

    Financial Instruments

Share, Debentures, Bonds, Assets , Etc

Commercial papers, Treasury bills, Certificate of Deposits, etc.

 

  Financial Institutions

Commercial banks, Stock exchange, Insurance

companies, etc.

Central banks, commercial banks, non financial institutions, etc.

  

    Liquidity

Low

High

So we have studied Difference between Capital Market and Money Market with its comparison chart and if you have any queries please let us know in the comments:

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