The key elements that reveal the difference between capital market and money market is duration or time period that’s capital market prices in long-term funds and money market prices in short-term funds. Where SEBI is regulated by by capital market money Market controls by RBI.
To find out about Capital or Cash market we must comprehend about Financial Market. This is a location where sellers and buyers trade in financial assets like stock, commodities, currencies, bonds and derivatives. It’s many kinds another is money market and one of these is the capital.
Capital market: In this selling and purchasing is performed as a long-term investment where cash is supplied to get an extended time greater than one year. It’s high-risk and these are for stability and long term financial growth. In this agents price in equity capital and long-term debt in the type of public deposits, shares and debenture. Dividend rates or interest rates rely on demand and supply of securities as well as on stock market’s Sensex states. Capital marketplace can also be broken up into two parts.
Primary Market: In this buyer purchases the stocks the stock for the very first time. In this trade is created between investors and issuers.
Secondary Market: In this buyer purchases present stock from seller. It means investors sell or to get the securities that are prevailing. In this trade is created between investors.
One other significant section of this is stock and bond market.
Money Market: Here borrowing and financing are done for short term so; an investor who would like to place investment for temporary interval would go to the money market. The device with this is repurchase agreement, bill of exchanges, security loans, commercial paper, treasury bills, deposits and certificates of deposit. The interest rate is commanded central bank of any state or by RBI.