Capital Market: 

(i) Participants: Financial institutions, banks, corporate entities, foreign investors and retail investors. 

(ii) Instruments: The main instrument traded are equity shares, debentures, bonds or preference shares etc 

(iii) Investment outlay: Securities do not necessarily require huge financial outlay. 

(iv) Duration: Capital market deals in medium and long term securities i.e. equity shares and deben.

(v) Liquidity: Capital market securities are considered more liquid investments because they are marketable on the stock exchanges. 

(vi) Safety: Capital market instruments are more risky both with respect to returns and principal repayment.

Money Market: 

(i) Participants: Institutional participants such as RBI, commercial banks, financial institutions and finance companies. Individual investors normally do not participate. 

(ii) Instruments: 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. 

(iii) Investment outlay: Transactions entail huge sums of money as the instruments are quite expensive. 

(iv) Duration: They have a maximum tenure of one year and may even be issued for single day. 

(v) Liquidity: Money market instruments on the other hand, enjoy a higher degree of liquidity as there is formal agreement for this. 

(vi) Safety: Money market is generally much safer witha minimum risk of default.