What is the Difference between the Money Market and the Capital Market?

[Suba]

when we enter the world of investment it would be nice if we knew the difference between the money market and capital markets so that we can choose the type of investment according to our abilities.
Transactions on the money market will involve both bank and non-bank financial institutions and offer short-term investments such as certificates of deposit, central bank certificates, foreign exchange, money market securities (debt securities/Treasury Bills). Activities or transactions on the money market are supervised by the central bank. Meanwhile, the capital market is a long-term transaction of securities and is carried out through securities intermediaries or stock exchanges. Capital market activities and transactions are overseen by the Stock Exchange, while the instruments traded are stocks, bonds and mutual funds.

 

[jetsaints30]

Absolutely, when it comes to investing, knowledge is key. The money market is all about short-term investments like certificates of deposit and Treasury Bills, and it's monitored by the central bank. Meanwhile, the capital market is about long-term securities and is regulated by the stock exchange. Knowing these differences can help you decide where to put your money based on your goals and investment timeline.

 

[Reedex]

There is a huge difference between money market and capital market and it is understandably that capital market has to do with physical goods..

 

[Heatman]

Capital markets involves the buying and selling of bonds and stock which money market is all about trading short term loans between banks and other financial institutions.

 

[Niyi Briggs]

I think the money market is the forex market while the capital market is the market where shares, debenture and stock are bought and sold. I stand to be corrected though.