HSC Board– Easy way to learn and memorized – Role of a Secretary in Capital Formation – Notes for class 12th std , Distinguish between Money Market & Capital Market – Point of Discussion – class 12th – S.P – Notes of role of secretary in capital formation – Difference between money market and capital market , point of discussion – money market and capital market – Role of a Secretary in Capital Formation – Secretarial Practice – Notes, & Distinguish Between– Difference between, Study material, studies notes, study notes. According to the New Textbook for HSC Board
MONEY MARKET CAPITAL MARKET
| Sr. No | points of Discussion | Money Market | Capital Market |
| 1. | Meaning | A short term funds are borrowed and lend. | For borrowing and lending long term capital required by business enterprise. |
| 2. | Functions | Money market exists as a mechanism of liquidity adjustments i.e. a link between the depositors and borrowers | Capital market functions as a link between the investors and entrepreneurs. |
| 3. | Term of Finance | It provides short term funds, in short term instruments where the maturity is measured in days, weeks, or months. | It is a market for long term instruments which is measured in years. |
| 4. | Instruments | The instruments dealt in the market are bills of exchange, treasury bills, banker’s acceptance, etc. | The instruments dealt in this market are bonds, debentures, equity shares and stock. |
| 5. | Risk | The prices of these instruments do not fluctuate and they carry very low market risk. | The instruments are long term and subject to market fluctuations and so they carry very high financial and market risk. |
| 6. | Institution | The commercial banks are the important institutions in the money market. | The stock exchange is an important institution in the Capital Market. |