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Money markets deal in short-term funds, usually in the form of unsecured loans and other types of credit. No physical location exists, transactions being conducted by telephone or telex. The money market is a market mainly for short-term and very short-term loans, in both sterling and foreign currencies, though some longer- term transactions are also undertaken. In fact, it is not one single market but a number of different markets which closely inter-connect with each other. The main participants are the central bank and commercial banks, also finance houses, building societies, investment trusts etc.
Capital markets deal in longer-term finance, mainly via a stock exchange.
The major types of securities dealt on capital markets are public sector and foreign stocks ,company securities and Eurobonds.
the money market is one in which investors trade high liquidity cash equivalent items.
capital market is one where firms sell bonds, stocks, or any other equity or debt to investors so the firm can raise capital (usually this take place before a firm start its operations)
