A capital market is a financial market where long-term debt (maturing in over a year) and equity-backed securities are traded, facilitating the flow of capital between savers and those who need it for investment or business expansion. It\'s a place where companies and governments can raise funds by issuing stocks and bonds, and investors can buy these securities to grow their wealth. Money Market The money market is a financial market where short-term debt instruments with maturities of one year or less are traded. It\'s a place where institutions and governments manage their short-term cash needs and where investors can find relatively low-risk, liquid investments.