What is the Difference between the Capital Market and the Money Market?

[Suba]

As a layman, the two terms money market and capital market are often confused, even though both are platforms for investing by buying various types of securities. So, in your opinion, is there a difference between the money market and the capital market?

 

[kit_hung]

Money market and capital market are often confused but they have a big difference money market is a short-term part where money is invested in instruments like treasury bills and commercial paper it is like a quick savings that helps you catch your breath in times of emergency capital market is a long-term part where you invest in stocks and large bonds expecting future profits

It is like the story of Zeus and Poseidon one holding the sky and the other the sea money market is a short-term sky that gives you a quick light capital market is a wide ocean with big waves and a long journey if you choose well you can get big profits but you must know the risks and patience required