
152 | Business Environment
TYPES OF FINANCIAL MARKETS
e nancial markets can be broadly divided into money market and capital market.
Money Market
Money market is a market for debt securities that pay o in the short term usually less than
one year, for example, the market for 90-day treasury bills. is market encompasses the trading
and issuance of short-term non-equity debt instruments, including treasury bills, commercial
papers, bankers’ acceptance, certi cates of deposits, and so on.
Capital Market
Capital market is a market for long-term debt and equity shares. In this market, the capital funds
comprising of both equity and debt are ...