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Money Markets are the Markets where financial instruments with maturities of a year or less are traded. Examples of such securities are Treasury Bills, Commercial Paper and Short Term Certificates of Deposit.

Capital Markets are the Markets on which financial instruments with maturities greater than one year are traded. Examples of Such securities are Treasury Notes, Treasury Bonds, Corporate Bonds and Equity (a.k.a. Stocks).

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13y ago
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10y ago

Money market investments use paper instruments as opposed to the capital market which uses equity and bonds. Asset backed financial paper includes auto loans and credit card debts.

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Q: What are the instrument traded in money market or capital market?
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