What comes to your mind when you hear the capital market and money market? A market that trades money for venture capital? Not quite right. For ordinary people, the capital market and money market are still foreign to their ears. However, for those of you who are in the business world, of course you are familiar with these two terms.
The capital market and money market are in principle a place to conduct transactions, but the objects are not consumer goods like those sold in markets in general, but securities. The objectives are varied, ranging from long and short-term investments, sources of working capital financing, to controlling the amount of money circulating in the community.
So, what is the difference between the capital market and the money market? To know and understand the difference, first identify what the capital market and money market are. The capital market is a place for buying and selling securities or long-term securities. Meanwhile, the money market can be understood as a place for buying and selling short-term securities.
From the understanding of the capital market and the money market, it actually reflects the difference between the two. Of course the difference is not that simple, here are more details.
• Market instruments
The capital market has different types of instruments from the money market. Capital market instruments include securities with long maturities of more than one year. On the other hand, money market instruments include short-term securities of less than one year.
The capital … Read More