Money market
- Also known as the short-term financial market used by market participants to adjust for temporary imbalances in the supply and demand of funds
- It is a market in which financial products with maturity of one year or less are traded
- The call market, the Bank of Korea redemption conditional securities trading market, the redemption conditional trading market, the transferable deposit certificate market, and the corporate paper market are included in the money market
- The call market is an ultra-short market that is within a day to a maximum of 30 days in which temporary funds and shortages are adjusted between financial institutions
Capital market
- A market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc.
- The buying/selling is undertaken by participants such as individuals and institutions.
- Capital market consists of primary markets and secondary markets.
- Primary markets deal with trade of new issues of stocks and other securities, whereas secondary market deals with the exchange of existing or previously-issued securities.
- Another important division in the capital market is made on the basis of the nature of security traded, i.e. stock market and bond market
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