The financial markets can broadly be divided into
money and capital market.
Money Market: Money market is a market for debt
securities that pay off in the short term usually less than one year, for
example the market for 90-days treasury bills. This market encompasses the
trading and issuance of short term non equity
debt instruments including treasury bills, commercial papers, bankers
acceptance, certificates of deposits, etc.
Capital Market: Capital market is a market for
long-term debt and equity shares. In this market, the capital funds comprising
of both equity and debt are issued and traded. This also includes private
placement sources of debt and equity as well as organized markets like stock
exchanges. Capital market can be further divided into primary and secondary
markets.
No comments:
Post a Comment