Capital market, also known as long-term financial market, is characterized by high risk, high return, long term and weak liquidity.
Extended data
1. Money market refers to the market where financial assets with a maturity of less than one year are traded. The main function of the market is to maintain the liquidity of financial assets in order to convert them into currencies that can be circulated at any time. Its existence, on the one hand, meets the borrower's short-term capital demand, on the other hand, it finds a way out for temporarily idle funds. Money market generally refers to the trading market of short-term credit instruments such as treasury bills, commercial bills, bank acceptance bills, negotiable certificates of deposit and repurchase agreements;
2. The capital market is a market where governments, enterprises and individuals raise long-term funds, including long-term lending market and long-term securities market. In long-term lending, it is generally consumer credit provided by banks to individuals; In the long-term securities market, there are mainly stock market and long-term bond market.
References:
Finance and Economics (Xinhua link)