Expert: Paul Henneman - 12/7/2008

Question
what is the difference between a financial market,securities market,capital market and a money market?please note that this is not a home work question. I have asked because I seem to have difficulties in diffrentiating them. Thank you in advance.

Regards,
Harry

Answer
Harry,
   Thank you for your question. A complete answer to your question would take more space than I have here, but I can offer a few guidelines.  A financial market usually includes all sorts of investments and economic mechanisms. A securities market however typically refers to just stocks (generally publicly traded stocks).  A money market refers primarily to short term debt instruments like cd's, treasury bills, and other things. Capital markets are markets where both public and private debt and equity can be traded.

A great resource for this kind of thing is "Barrons Dictionary of Finance and Investment Terms". It is available in most major bookstores and on amazon.com, and contains short but complete definitions on just about any term in Finance that you would come across.

I hope that this is helpful, please do not hesitate to follow up with me if I can be of any additional service!

Sincerely,
Paul Henneman
President
ValuEngine Inc