Financial assets that will mature within a year are bought and sold in the money market.
What are the different types of market?
- Debt market - The market where debt instruments are traded is known as the debt market. Assets known as debt instruments call for a specific payment to be made to the owner, typically with interest.
- Capital market - Stock, bond, currency, and other financial assets are traded in capital markets, which are financial marketplaces that connect buyers and sellers.
- Stock market - It is an interconnected system of stock exchanges where investors and traders can buy and sell shares of publicly listed firms. A procedure known as an initial public offering allows private companies to list shares of their stock on a market (IPO).
- Money market - Bank accounts, including term certificates of deposit, interbank loans (loans between banks), money market mutual funds, commercial paper, Treasury bills, and securities lending and repurchase agreements are among the items traded in money markets (repos).
The debt, capital and stock markets are longer-term in nature.
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