BASIS FOR

MONEY MARKET CAPITAL MARKET

COMPARISON

Meaning A segment of the financial A section of financial market

market where lending and where long term securities
borrowing of short term are issued and traded.
securities are done.

Nature of Market Informal Formal

Financial Treasury Bills, Commercial Shares, Debentures, Bonds,

instruments Papers, Certificate of Retained Earnings, Asset
Deposit, Trade Credit etc. Securitization, Euro Issues
etc.

Risk Factor Low Comparatively High

Time Horizon Within a year More than a year

Merit Increases liquidity of funds Mobilization of Savings in

in the economy. the economy.

Return on Less Comparatively High

Investment