Money markets represent shortterm lending while capital markets allow investors to trade in stocks and bonds. In this blog, we will help you understand the ten major differences between Money Market vs.The money market is where short-term debt and lending takes place; the capital market is designed for long-term assets, such as stocks and bonds. State of Illinois Investor Meeting, April 17, 2023, New York, NY. The State of Illinois' investor meeting replay is available here. Money market basically refers to a section of the financial market where financial instruments with high liquidity and shortterm maturities are traded. The document discusses money markets and capital markets, explaining that money markets deal in short-term financial instruments of up to one year. A primary market is a source of new securities. Often on an exchange, it's where companies, governments, and other groups go to obtain financing.