question archive Discuss the differences between the Money and Capital Markets, and the types of securities trade in those markets
Discuss the differences between the Money and Capital Markets, and the types of securities trade in those markets
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Discuss the differences between the Money and Capital Markets, and the types of securities trade in those markets. Give examples.
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Money markets are the markets which deal in short term securities and Capital markets are the markets which deal in long term maturity (more than 1 year)
Both stocks and bonds are traded in the capital market and only bonds are traded in the money market.
Liquidity is compartively less in Capital Market.
The risks involved in the money market are less than that of the capital market.
Examples-
Money Market: T-Bills, Commercial Bills, Certificate of Deposits etc
Capital Market: Shares, Debentures, Bonds etc
