Money market and Capital market.
|Basic for comparison||Money market||capital market|
|Meaning||A segment of the financial market where lending and borrowing of short term securities are done.||A section of the financial market where long term securities are issued and traded.|
|Nature of Market||Money markets are informal in nature||Capital markets are formal in nature|
|Financial instruments||Treasury Bills, Commercial Papers, Certificate of Deposit, Trade Credit, etc.||Shares, Debentures, Bonds, Retained Earnings, Asset Securitization, Euro Issues, etc.|
|Risk Factor||Money markets have a low risk||Capital markets have more risk as compared to money markets|
|Return on Investment||ROI is usually low in the money market||ROI is comparatively high in the capital market|
|Liquidity||Money markets are highly liquid||Capital markets are comparatively less liquid|
Concept: Capital Market in India
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