Difference between capital and financial market

This query is : Resolved 

05 February 2014 difference between capital market and financial market in detail....

05 February 2014 Capital market Vs. Money market:

1. Classification: Primary Market and Secondary Market - No such classification
2. Type of Funds: Long term funds - Short term Funds
3. Number of Instruments: Shares and debentures - Many like Call money, ICDs’, CPs’, Treasury Bills etc.
4. Players: General investors, FIIs’, brokers, Registrars, Underwriters, Bankers, Corporate investors, etc. - Banks, R B I, Govt., PF Funds, PSUs’, FIs’, large corporates etc.
5. Support: Supports capital - Supports working capital.
6. Value: Each instrument is of low value. - Each instrument is of high value
7. Default Risk: Risk of default is high as it is of long term. - Risk of default is less as it is of short term
8. Role: Role of capital market includes putting capital to work - Basic role is liquidity adjustment
9. Relation with central bank: Not closely related with central bank. - Closely and directly linked with the Central Bank of the country in fixing interest rates.



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