Money
Market: The market where monetary assets such as commercial paper, certificate
of deposits, treasury bills, etc. which mature within a year, are traded
is called money market. It is the market for short-term funds. No such market
exist physically; the transactions are performed over a virtual network, i.e.
fax, internet or phone.
Capital Market: The market where medium and
long term financial assets are traded is a capital market. It is
divided into two types:
Primary
Market: A financial market, wherein the company listed on an exchange, for the
first time, issues new security or already listed company brings the fresh
issue.
Secondary
Market: Alternately known as Stock market, a secondary market is an organised
marketplace, wherein already issued securities are traded between investors,
such as individuals, merchant bankers, stock brokers and mutual funds
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