A Study on Financial Derivatives
Money Market: The money market refers to the market where borrowers and lenders exchange short-term funds to solve their liquidity needs. Money market instruments are generally financial claims that have low default risk, maturities under one year and high market ability.
Capital Market: It is a wide term used to comprise all operations in the new issues and stock market. New issues made by the companies constitute the primary market, while trading in the existing securities relate to the secondary market. It is to be noted that we can only buy in the primary market and not sell, but we can buy and sell securities in the secondary market. All long-term borrowings and lending constitute the capital market. The securities market, however, refers to the market for those financial instruments that are commonly and readily transferable by sale. The securities market has two inter-dependent and inseparable segments they are, new issues
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