The main instruments traded in the capital market are – equity shares, debentures, bonds, preference shares etc. The main instruments traded in the money market are short term debt instruments such as T-bills, trade bills reports, commercial paper and certificates of deposit.
What are the capital market instruments?
Derivatives are capital market instruments that derive their value from an underlying asset. The underlying assets can be bonds, stocks, metals, commodities, currency, etc. The trade of these instruments is based more on speculation, however these can also be used for hedging and arbitrage purpose as well.
What are the 4 types of capital market?
Capital markets are financial markets that bring buyers and sellers together to trade stocks, bonds, currencies, and other financial assets. Capital markets include the stock market and the bond market.