The capital market is where corporations and governments issue financial assets such as bonds and shares to meet their short-term financial needs.
The money market is associated with short-dated financial assets, while the capital market deals with long-dated or undated securities.
The money market is mainly used by the central government to raise finance through new issues of government bonds.
The capital market is primarily used for raising finance by the private sector through new issues of shares and corporate bonds.
The capital market and money market both provide short-term financing options for corporations and governments.
Test your knowledge on capital markets with this quiz! Explore the definition, instruments, types, and functions of capital markets. Understand the differences between capital markets and money markets.
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