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What Is The Difference Between Capital Market And Money Market ?

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amber Jhon Profile
amber Jhon answered
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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Anonymous answered
Capital market give long term funds while money market gives short term long
C.M is own and control by the govt while M.M is controled by central bank
Anonymous Profile
Anonymous answered
Difference between money market and capital market
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Anonymous answered
 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
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Anonymous answered
Capital Market is to raise Long term funds and Money market is used for raising Short term funds
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Anonymous answered
Money market involves short-term instruments while capital markets involves long-term instruments like bonds and stocks.
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Anonymous answered
Capital market is under the government control and money market is under the central bank
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Anonymous answered
Capital money is our own because it is always there,while money market is not ours but for everybody.

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