Tuesday, September 20, 2016

Money market VS Capital market



Money market
Capital market
1. Is a component of the financial markets where short-term borrowing takes place
1. Is a component of financial markets where long-term borrowing takes place
2. Lasts anywhere from 1 hour to 90 days.
2. Lasts for more than one year and can also include life-time of a company.
3.. Liquidity adjustment
3. Putting capital to work
4. Short-term credit required for small investments.
4. Long-term credit required to establish business, expand business or purchase fixed assets.
5. Risk is small
5. Risk is greater