Answer Posted / madhu
Financial markets can be categorized into two types.
1.Money markets
2.Capital markets
Money markets are the markets through which governments or
corporates raise money to meet their short term money
requirements (like meeting their working capital
requirements). The government, through money markets can
raise money for very short periods like 15 days also.
Capital markets are the markets through which corporate
bodies raise money for their long term needs
Capital markets can again be categorise as
1.primary markets
2.Secondary markets
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