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    Sanjana Kapoor
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    The document differentiates between money markets and capital markets. Money markets deal in short term financial assets with maturities up to one year and instruments include treasury bills and commercial paper. Capital markets deal in medium to long term funds and their instruments include stocks, bonds, and debentures. While money markets link short term lenders and borrowers, capital markets link long term investors and borrowers through a formal stock exchange.

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    Money &Capital Market

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    The document differentiates between money markets and capital markets. Money markets deal in short term financial assets with maturities up to one year and instruments include treasury bills and commercial paper. Capital markets deal in medium to long term funds and their instruments include stocks, bonds, and debentures. While money markets link short term lenders and borrowers, capital markets link long term investors and borrowers through a formal stock exchange.

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    © All Rights Reserved
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    5 views6 pages

    Money &capital Market

    Uploaded by

    Sanjana Kapoor
    The document differentiates between money markets and capital markets. Money markets deal in short term financial assets with maturities up to one year and instruments include treasury bills and commercial paper. Capital markets deal in medium to long term funds and their instruments include stocks, bonds, and debentures. While money markets link short term lenders and borrowers, capital markets link long term investors and borrowers through a formal stock exchange.

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    © All Rights Reserved
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    of 6

    MONEY MARKET &

    CAPITAL MARKET
    MONEY MARKET

    • Money Market refers to the market for short terms


    funds, which deals in financial assests whose period of
    maturity is up to 1 year . It does not deal with cash or
    money but simply provides maeket for credit
    instruments .
    MONEY MARKET INSTRUMENTS

    1. Call money
    2. treasury bills
    3. commercial paper
    4.certificate of deposit
    5. trade bill
    CAPITAL MARKET

    • Capital market refers to market deals with medium


    and long term funds . It is an instrumental
    arrangement for borrowing medium and long term
    funds .
    CAPITAL MARKET INSTRUMENTS

    • 1. stock
    • 2. debenture
    • 3. bond
    • 4. goverment bond
    • 5. mutual fund
    DIFFERENTIATE BETWEEN MONEY MARKET &
    CAPITAL MARKET
    money market capital market

    1. money market refers to short term fund 1. capital market refers to long term fund

    2. money market instruments include 2, capital markets instruments include


    commercial paper , certificate of deposit shares , debenture , goverment bond.
    3. deals with smaller value
    3. deals with larger amount
    4. capital market is a link between investor and
    4. money market is a link between lender and
    borrower for long term
    borrower for short term.
    5. There is a formal place in capital market
    5. There is no formal place in money market. known as stock exchange

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