MONEY MARKET
A segment of the financial foodstuff in which financial instruments with high liquidity and very short maturities atomic number 18 traded. The cash trade is used by participants as a means for borrowing and lending in the short term, from several(prenominal) days to just under a year. M unmatchedy grocery securities consist of negotiable certificates of deposit (CDs), bankers acceptances, U.S. Treasury bills, technicalised paper, municipal notes, federal funds and repurchase agreements (repos).
OR
The money marketplace is used by a wide array of participants, from a company raising money by selling commercial paper into the market to an investor purchasing CDs as a in effect(p) propose to park money in the short term. The money market is typically seen as a safe place to put money due the highly liquid constitution of the securities and short maturities, but there are risks in the market that any investor needs to be aware of including the risk of nonremittal on securities such as commercial paper.
Explanation:-
Whenever a bear market comes along, investors realize that the stock market is a risky place for their savings. Its a fact we tend to impede while enjoying the returns of a bull market. Unfortunately, this is part of the risk-return tradeoff. To get higher(prenominal) returns, you carry to take on a higher take aim of risk.
For many investors, a volatile market is too a great deal to stomach - the money market offers an alternative to these higher-risk investments.
The money market is better known as a place for queen-size institutions and government to manage their short-term cash needs. However, individual investors have access to the market through a variety of several(predicate) securities. In this tutorial, well cover various types of money market securities and how they ass work in your portfolio.
Capital Market
Capital Market is one of the significant aspects of every financial market. Hence it is necessary to body of work its correct meaning. Broadly speaking the capital market is a market for financial assets which have a long or...If you necessitate to get a full essay, order it on our website: Orderessay
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