What is the difference between money market and capital market

A money market is a component of financial market where short-term borrowing can be issued. This market includes assets that deal with short-term borrowing, lending, buying and selling. A capital market is a component of a financial market that allows long-term trading of debt and equity-backed securities. Long-term borrowing or lending is done by investors or corporations that have large amounts of wealth at their disposal.

On the other hand, a capital market is a component of a financial market that allows long-term trading of debt and equity-backed securities. Long-term borrowing or lending is done by investors or corporations that have large amounts of wealth at their disposal.

The most popular capital market is the NYSE or the New York Stock Exchange

Huge financial regulators are responsible for overseeing the capital market to ensure that companies do not defraud their investors. Trading can be done by a number of credit instruments such as stocks, shares, equity, debentured, bonds, and securities. Much of the trading is actually done online using a computer. There is no actual cash involved in trading.

Capital markets offer higher-risk investments, while money markets offer safer assets; money market returns are often low but steady, while capital markets offer higher returns. The magnitude of capital market returns often has a direct correlation to the level of risk, but that is not always the case.