Group discussion during a synchronous meeting Explain the Phrase Money Markets, and how the market mechanism works. Access study documents, get answers to your study questions, and connect with real tutors for FINA 7A20 : Capital Markets at University of Houston.Money markets represent shortterm lending while capital markets allow investors to trade in stocks and bonds. Is stock a capital market or a money market security? Finance professionals make decisions that fall into three distinctive areas: corporate finance, capital markets, and investments. The document discusses money markets and capital markets, explaining that money markets deal in short-term financial instruments of up to one year. Learn the capital market definition and see how it compares to a money market.