| Money Market | Capital Market |
| It is a market where short-term funds are borrowed and lent. | It is a market where long-term funds are borrowed and lent. |
| The participants in the capital market are financial institutions, banks, corporate entities, and foreign investors. | The participants in the money market are RBI, banks, financial institutions are finance companies. |
| Individuals can take part in the trading of capital market | Individuals cannot directly trade in the money market. |
| The instruments involved for a transaction are treasury bills, calls money, certificate of deposit, commercial papers, commercial bills etc. | The major players are companies, investors, Institutional Investors,foreign investors,banks and financial institutions. |