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Describe the money market and capital markets, investments, and financial management. Why is it important for people in finance to know about all of these areas, even if they work in only one area?

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A thorough rationale uncovers money market and capital markets, investments, and financial management.

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Describe the money market and capital markets, investments, and financial management. Why is it important for people in finance to know about all of these areas, even if they work in only one area?

Money market is a market for short term debt securities. Thus this type of investment is short term, which means that investors can only invest in this type of investment less than 1-year of period. Interestingly, money market is highly liquid and low risk (Fidelity Investments, 2006). For example, certificate of deposits, treasury bills, commercial paper.
The capital market is a market for long term investments in equities. Thus this is for the long term and investment is done into equities. It enables the reserved finances to become a part of commercial projects, thus stimulating the economy, as whole.

Investment is a allocating money to ...

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