Nmoney market and capital market instruments pdf

Although these products may have similarities with money market. Capital markets institutions, instruments, and risk management fifth edition frank j. Capital market is a market for longterm debt and equity shares. Clearing and settling money market instruments david l. Capital market offers products like equity, debt, hybrid instruments and various mutual fund schemes. Capital market instruments come in the form of medium or longterm stocks and bonds. Capital market is the market where investment instruments like bonds, equities and mortgages are traded. Capital markets institutions, instruments, and risk. Capital markets attract individual investors, governments, investing firms, banks and other financial institutions.

It mainly centers round its activities on the discount houses, the commercial banks. Keywords financial market, money market, capital market, risk, return, central. Difference between money market and capital market bbalec. Pdf comparison study between money and capital market. Secondary markets existing securities are bought and sold among investors. Trading and creation of derivative instruments 222 asset management 223 key points 223. Capital market and the international monetary system, is because one of the outstanding developments in the international financial area since the warparticularly since the coming of the convertibility of the. Primary markets are associated with sale and purchase of new securities while in. Pdf attitude of investors to capital and money market investments. The money market is a market for shortterm instruments that are close substitutes for money. Money market instruments are forms of debt that mature in less than one year and are very liquid. The instruments used in the money markets include deposits, collateral loans, acceptances, and bills of exchange.

It deals in short term debt financing and investments. Financial institutions and capital markets gbus 8490. A money market fund is a mutual fund that invests solely in money market instruments. Im not sure what is your level of knowledge about capital markets so ill start from the very basics. Capital markets refer to markets for longterm financial products and services where governments and companies can raise financing. Institutions, instruments and investors prepared by silvia iorgova and li lian ong1 authorized for distribution by ceyla pazarbasioglu and daniel hardy april.

Capital market money market it is one part of financial market where instruments like securities,bonds having short term maturities usually less than one year are traded is know as money. This research investigates the market and inflation risks of treasury securities. Each of this investment class carries different riskreturn profile and is covered separately under. Money market and capital market instruments bankexamstoday. A quick and basic overview of capital market instruments. Thus the capital market definitely plays a constructive role in the overall development of an economy. The purpose of capital markets is to facilitate the circulation of capital money among. Capital market instruments to mobilize institutional. A money market fund is a type of mutual fund that invests in highquality, shortterm debt instruments and cash equivalents. Capital market characteristics and instruments in the financial sense, it is the market for the instruments representing longterm funds requirements of the corporation. It is one part of financial market where instruments like securities,bonds having short term maturities usually less.

The short term instruments are highly liquid, easily marketable, with little change of loss. Nevertheless it is important to mention that some of these instruments are already being used in some emes, which provides valuable evidence of the role that capital markets. Overview of financial markets and instruments financial markets and primary securities financial markets securities can be traded on. Functions of the money market the money market contributes to the. Mengle whenever a money market instrument is traded, some means must exist for transferring the.

The developed capital market also provides access to foreign capital for domestic industry. In this market, the capital funds comprising of both equity and debt are issued and traded. Financial markets and instruments lecture notes subject of this course. Capital market instruments primary role the primary roles of capital market is to raise long term funds for government, banks, and corporation while providing platform for the. However, fundamental concepts in equity mar ket analysis, foreign exchange and money markets, and certain other derivative instruments are also covered to.

Treasury bills these are issued by the reserve bank usually a period of 91 days. What are some examples of capital market instruments. Investment manual for fixed income securities in the international and major domestic. Pdf on jan 1, 2010, moorad choudhry and others published capital market instruments find, read and cite all the research you need on researchgate. The money and capital markets statistical yearbook 2012 the money and capital markets capital intermediation capital transfers from lenders to borrowers a capital market is a market where. Various instruments of money market and capital market. These instruments are effectively utilized with the help of commercial bank, central bank and other money market institutions. Capital market instruments are responsible for generating funds for companies, corporations and sometimes national governments. Their standard maturity periods are 4, 26 or 52 weeks1, 3, 6, 12 months one of the money market instruments that are. Instruments of the money market federal reserve bank. These are used by the investors to make a profit out of their. The money market encompasses a group of shortterm credit market instruments, futures market instruments, and the federal reserves discount window.