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

[GoldenLady]

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.

Once I tried to understand the difference between the two. It was hopeless.

Probably because I've always had problems understanding financial terms and jargons.

If I were to go into this field proper, I would take a course on it for dummies, simple to understand.

 

[WhiteHouse]

A money market and a capital market are both monetary business sectors. A money market is the place where a business would manage acquiring or loaning for a brief timeframe, though a capital market is principally pointed toward raising capital and would in this manner incorporate exchanges which are for a significant stretch of time, by and large longer than a year.

 

[Lyrrex]

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.

 

[btaliat]

The two markets are being controlled by the stock exchanges. While money market deals with short term debts, capital msrket deals with long term debt. Capital market sometimes are used in controlling the inflation rate in a nation.

 

[Adeyoola7]

Money markets are used for short-term lending or borrowing usually the assets are held for one year or less whereas, Capital Markets are used for long-term securities they have a direct or indirect impact on the capital. Capital markets include the equity market and the debt market.

 

[Adetayo100]

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

 

[ossai]

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.

 

[Onachukwu]

Capital markets offer higher-risk investments, while money markets offer safer assets; money market returns are often low but steady, while capital markets offer higher returns. The magnitude of capital market returns often has a direct correlation to the level of risk, but that is not always the case.

 

[WhiteHouse]

Personally I prefer sitting at home and getting my money, I love passive income, passive Income is doing little or nothing to bring in cash, and right now there are alot of opportunities that can give me the passive income both online and offline.

 

[Yasmin]

• 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. These are long-term assets bought by financial institutions, professional brokers, and individual investors.

 

[unhappy triad]

In money market securities and acquisition are all short term. Trades, deals and business here are only for short term. Capital market involves securities in a long term. Involves loans in long term and stocks. I am no economist. My views are subject to verification

 

[Abbeyola]

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.

The difference between money market and capital markets is that money market in my own understanding deals with all form of spendable currency,be it notes,coins, crypto currency or digital money.
While capital markets deals in like shares,stock,bonds, licence.

 

[redpogi16]

The money market is to trade in very short-term. It involves large volume of trades between institution and trader. At the retail a level, it include mutual funds bought by a investors and money market accounts opened by bank customers.

 

[Briangsam]

Many people casually misplace one for the other truly. I was guilty of that for several years as well. I thought they could be used synonymously. Money market is usually a short term trading that makes profit while capital market is long term and has more securities.

 

[BuchiBankz]

Money market is the trade in short term debt, it's a constant flow of cash between the government, banks and financial institution.
Borrowing and lending for a short term debt but not more than a year. While Capital markets these are long term assets bought by financial institute professionals stock brokers and individuals investors.

 

[Debola]

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.

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.

 

[shakky2]

money market deals with purely cash i.e liquids while capital markets deal strictly with financial instruments.these two terms Operate differently but though capital and money may sound alike but they operate differently in the financial world

 

[Mawome]

It doesn't mean anything as far as am concerned they are just for there for nothing sake, columnist are just looking for some to get busy with that why you see them sometimes manufacture issues on something that is not supposed to be an issue, so that just it

 

[zahidhussain]

Money market means short term debt in cash with banks or other government sectors with security while the capital market means the debt on large scale investment and in the form of bonds also these are long term with security

 

[tyrim88]

Money market has to do with securities involving financial institution,govt and cash circulation,but usually for a short period of less than a year.
While the capital market is a security that last for a longer period.