| S.No. Basis | Capital Market | Money Market |
| 1. Participants | Financial Institutions,
Banks,. Corporate
Entities, foreign
investors and
individuals | RBI, Banks Financial
Institutions & finance
companies |
2. Instruments
Traded | Equity shares, bonds
preference shares and
debentures.call money
etc | Treasury Bills, Trade
bills, commercial paper. |
3. Investment
outlay | Does not necessarily
require a huge financial
outlay. | Entails huge sums of
money as the instruments
are quite expensive |
| 4. Duration | Deals in medium &
long-term securities
having maturity period
of over one year | Deals in short term
funds having maturity
period up to one year. |
| 5. Liquidity | Securities are less
liquid as compared to
money market
securities. | .Money market
instruments are highly
liquid |
6. Expected
return | High return | Low return |
| 7. Safety | Capital Market
instruments are riskier
both with respect to
return and repayment. | Money market instruments
are generally much safer
with a minimum risk of
default. |
