Give the meaning of ‘Capital Market’. Differentiate

between ‘Capital Market’ and ‘Money Market’ on the basis

of the following:

(a)

Participants

(b)

Investment Outlay

(c)

Duration

Capital Market refers to facilities and institutional arrangements through which long term funds, both debt and equity are raised and invested. Difference between Capital Market and Money Market Basis Capital Market Money Market A Participants Financial Institutions, RBI, Banks, Banks, Corporate Financial entities, Foreign institutions, and Investors and Finance Ordinary Retail Companies. Investors from members of the public. B Investment Investment in capital Transactions outlay market i.e. securities entail huge does not necessarily sums of money require a huge as the financial outlay. The instruments are value of units quite expensive. of securities is generally low. C Duration The Capital Market Money market deals in medium and instruments have long term securities a maximum such as equity shares tenure and debentures. of one year and may even be issued for a single day. .