What is money market is how it is different from capital market?
Money market is primarily a market for short term funds. Generally the maturity is within an year and more commonly it is overnight. The types of securities traded in money market are
Treasury Bills
Commercial Papers
Repos
Bankers Acceptance etc
This market is primarily for banks and other primary dealers.
On the other hand Capital market is a long term financial market and generally the following securities are involved
Bonds
Stocks
There is a primary market and secondary markets for capital markets. Companies participate in capital markets to secure funds for their capital expansion etc..
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