Question
According to our discussion, money market is the market for securities with a maturity (life) less than one year. For example, Treasury bills with maturities
According to our discussion, money market is the market for securities with a maturity (life) less than one year. For example, Treasury bills with maturities of 180 days are traded in the money market. Capital market is for financial securities with a maturity (life) longer than one year. But let us think deeper about stocks. You can buy stocks of a company let say "Amazon" today in the morning and sell them tomorrow. The life of your investment of Amazon stocks is surely less than one year. Why do you think we still classify stocks as capital market instrument? And your stock purchase or sale still happening in the capital market, but not money market?
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