Differentiate between 'Capital Market' and 'Money Market' on the following basis: (i) Participants, (ii) Instruments, (iii) Investment
Differentiate between 'Capital Market' and 'Money Market' on the following basis:
(i) Participants, (ii) Instruments, (iii) Investment outlay, (iv) Duration and (v) Liquidity
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| Basis | Capital Market | Money Market |
| Participants | The participants are financial institutions, banks, corporate, foreign investors and retail investors. | The participants are RBI, financial institutions, banks, corporate. |
| Instruments | Instruments traded are shares, debentures and bonds. | Instruments traded are treasury bill, commercial paper, certificates of deposit, call money and commercial bill. |
| Investment outlay | Investment outlay is small. | Investment outlay is large. |
| Duration | It deals in medium term and long term securities | It deals in short term securities |
| Liquidity | Capital market securities are comparatively less liquid. | Money market securities are comparatively more liquid. |
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