| Basis | Capital Market | Money Market |
| Instruments | Instruments traded are shares, debentures and bonds. | Instruments traded are treasury bill, commercial paper, certificates of deposit, call money and commercial bill. |
| Duration | It deals in medium term and long term securities | It deals in short term securities |
| Liquidity | Capital market securities are comparatively less liquid. | Money market securities are comparatively more liquid. |
| Expected return | The investment in capital markets generally yields a higher return | The expected rate of return of the money market is less. |
