Money Market VS. Capital Market

What is the money market?

Money market refers to a collection of financial institutions, bill brokers, money dealers, banks,
and other institutions where short-term financial instruments are traded and settled. Wholesale
marketplaces are another name for these markets.

Money Market is a disorganised market, so the dealing is done off the public exchange market, i.e.
Over The Counter (OTC), within two bodies by using email, fax, online and phones, etc. It supports
the industries to accomplish their working capital demand by circulating short-term funds in the
economy.

What is the Capital market?

Capital Market is a type of financial market where corporate or government securities are
generated and patronized with the goal of producing long-term finance to match the capital
required.
Buyers in this market put their money into long-term investments. Risky markets are inherent in
the capital market. As a result, it is not used to invest in short-term funds. The majority of
investors use capital markets to save for school or retirement.