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What is capital market? Differentiate between …

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What is capital market? Differentiate between capital market and money market on any four basis.
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Sia ? 3 years, 4 months ago

the part of a financial system concerned with raising capital by dealing in shares, bonds, and other long-term investments.

Basis Capital Market Money Market
Instruments  Instruments traded are shares, debentures and bonds.  Instruments traded are treasury bill, commercial paper, certificates of deposit, call money and commercial bill.
Duration It deals in medium term and long term securities It deals in short term securities
Expected return The investment in capital markets generally yields a higher return The expected rate of return of the money market is less.
Security/Safety Capital market instruments are risky with respect to returns and principal repayment. Money market instruments are generally much safer with a minimum risk of default
Meaning It refers to the facilities and institutional arrangements through which funds, both debt and equity are invested and raised. It is the market where low risk, unsecured, highly liquid short term debt instruments are issued and traded
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