What is the difference between the money market and the capital market?

[Suba]

Many people (including myself) still do not understand the difference between the money market and the capital market, even though both are places for securities transactions, of course there are many differences. For those of you who are dealing with these two markets, it will certainly be easy to explain the difference between the money market and the capital market.

 

[Goodday]

Many people (including myself) still do not understand the difference between the money market and the capital market, even though both are places for securities transactions, of course there are many differences. For those of you who are dealing with these two markets, it will certainly be easy to explain the difference between the money market and the capital market.

There are actually many difference between money market and capital market the main is just that money market is a market which deals with short term securities whereas the capital market deals mainly with long or medium term securities acquisition.

 

[Carson20t]

I would like to study this extensively and slowly but surely am getting there,i would also want to buy international shares as they are more transparent as compared to local shares.I will level up pretty soon.

 

[MastetG]

The money market is the trade in short-term debt. It is a constant flow of cash between governments, corporations, banks, and financial institutions, borrowing and lending for a term as short as overnight and no longer than a year. The capital market encompasses the trade in both stocks and bonds

 

[giddy]

A "money" market is places of exchange fordebt instruments with an original maturity ofless than one year. A "capital" market is placesof exchange for debt instruments with an original maturity of more than one year and also the market for equity securities(common stocks and preferred stocks).

 

[WhiteHouse]

The Money market is the exchange momentary obligation. ... The capital market includes the exchange the two stocks and securities. These are long haul resources purchased by monetary foundations, proficient representatives, and individual speculators.

 

[Alexandoy]

I am not well-versed with capital market although I heard that before. In the bank where I worked there was a Money Market department that I even handled their computer system. The money market is getting deposits that they invest in government bonds and other profitable investment of money for a short term only because the money market system is not for long term. The yield in money market is higher then the earnings of a regular deposit in the bank.

 

[Chumzy]

Money market is a market that deals in short term investments. Capital market focuses on the long term investment mostly. They both form the finance market of an economy.

Post automatically merged: Jan 6, 2021

Money market is a market that deals in short term investments. Capital market focuses on the long term investment mostly. They both form the finance market of an economy. They deal on securities, like shares, options, stocks.

 

[Hasan Raza]

If you don't have the basic knowledge about commerce then it will be a little difficult to understand to you.
Money market is the short term debt in which the government, corporations and banks flow of cash at overnight and less than a year.
Whether the capital market encompasses trade in stocks and bonds. These are long term assets bought by any financial institution.

 

[Highflyer]

A "money" market is places of exchange for debt instruments with an original maturity of less than one year. A "capital" market is places of exchange for debt instruments with an original maturity of more than one year and also the market for equity securities (common stocks and preferred stocks).

 

[Dylinks]

It is important to lay the foundation that both money and capital market is traded in the financial market controlled or under the regulation of Stock Exchange. Money market is used to trade short term debt such as commercial paper, overdraft etc while Capital market is used to control inflation i.e too much money in circulation.

 

[Kinglegend01]

The money market and the capital market are not single institutions but two broad components of the global financial system.The money market is the trade in short-term debt. It is a constant flow of cash between governments, corporations, banks, and financial institutions, borrowing and lending for a term as short as overnight and no longer than a year while the capital market encompasses the trade in both stocks and bonds. These are long-term assets bought by financial institutions, professional brokers, and individual investors.

 

[Hassan14]

Many people (including myself) still do not understand the difference between the money market and the capital market, even though both are places for securities transactions, of course there are many differences. For those of you who are dealing with these two markets, it will certainly be easy to explain the difference between the money market and the capital market.

In fact, there is a very basic difference between the money market and the capital market, the main thing being that the capital market is for the acquisition of long-term and medium-term securities, while the money market is for the principle of short-term security. This is the main difference between the two.

 

[Tariq Shehzad]

Money market is a market that is dealing in the short term investments. And While a capital market is focusing on the long term investment . But They both form the finance market of an economy.

 

[Trojan8]

The main difference between both market is the length of borrowed funds. Money market is a market for short-term investments. While capital markets is a market for long term investment, this is where the stock market fall in.

 

[joy101]

Money market is the capital that use to trade, infect there are different between money market and the capital market, the main things there is the capital that the financial situation that,

 

[Sincerem]

Many people (including myself) still do not understand the difference between the money market and the capital market, even though both are places for securities transactions, of course there are many differences. For those of you who are dealing with these two markets, it will certainly be easy to explain the difference between the money market and the capital market.

Money market is trading in short time debt investment for the hope of making profit. While the capital market is a financial market where long time debts that exceeds one year are brought and sold for a purpose of clearing debts and making profits etc.

 

[Ridorz]

As my own perspective and understand of the different between money market and capital market is that money market is money used to run a business for a temporary while the capital market is the huge of money used to run a business for a long time .

 

[Akinwale701]

Many people (including myself) still do not understand the difference between the money market and the capital market, even though both are places for securities transactions, of course there are many differences. For those of you who are dealing with these two markets, it will certainly be easy to explain the difference between the money market and the capital market.

Money market is an institution for trading of short term securities, while capital market is for trading of Long term securities and debts instruments. the type of securities and duration differentiate money market from capital market.

 

[Adegbindin Abdullahi]

The money market is the trade in short-term debt. The capital market encompasses the trade in both stocks and bonds. These are long-term assets bought by financial institutions, professional brokers, and individual investors

Post automatically merged: Jan 7, 2021

That is the similarity between them