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money market and capital market

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24 May 2009 sir,
what is MONEY MARKET,CAPITAL MARKET,SECURITY MARKET,CASH MARKET.....All the terms seems so similiar that it creates confusion....Pls explain them...and the difference among them...

25 May 2009 Money Market: Money market is a market for debt securities that pay off in the short term usually less than one year, for example the market for 90-days treasury bills. This market encompasses the trading and issuance of short term non equity debt instruments including treasury bills, commercial papers, bankers acceptance, certificates of deposits, etc.

Capital Market: Capital market is a market for long-term debt and equity shares. In this market, the capital funds comprising of both equity and debt are issued and traded. This also includes private placement sources of debt and equity as well as organized markets like stock exchanges. Capital market can be further divided into primary and secondary markets.

25 May 2009 pls elaborate it along with cash and security market.........


29 May 2009 Money market is a market for dealing in short term securities usually ranging from several days to a year.he money market is used by participants as a means for borrowing and lending in the short term.Eg: Commercial paper, treasury Bills

Capital market is a market for dealing in long term securities(more than a year). It includes primary market( for newly issued securities) and secondary market(where existing securities are sold).





29 May 2009 The spot market or cash market is a commodities market in which goods are sold for cash and delivered immediately. Contracts bought and sold on these markets are immediately effective.One of the characteristics of the cash market is the immediate satisfaction and transfer of ownership.Metals are one example of a commodity that is often sold in a cash market.

Securities market is nothing but secondary market where both debt and equity instruments are dealt with( Stock exchange)




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