Are US Treasury bills, common & preferred stock, and dealer commercial paper money market or capital market?

Answer 1

Capital markets broadly refers to the mechanisms used to raise 'capital' in the form of either debt or equity instruments (eg bonds or stocks).

Money markets include a subset of financial instruments underwritten and traded within the broader 'capital markets' which are typically short term and highly liquid in nature.

So ... TBills and most investment grade CP would be considered money market instruments

And ... common and preferred stocks would be capital market instruments but not typically money market instruments.

Just to add two more wrinkles to the answer ... (1) US Trsy Bills, which have short terms would be considered MM while a 10Yr or a 30Yr US Trsy Bond would not (unless was being sold in the secondary market at a point where it had 1Yr or less remaining to maturity). And (2) just to add to the confusion, the CP while traded as a MM instrument is usually brought to market by a 'capital markets' underwriter. So ... a somewhat blurry line between the 'capital markets' and 'money markets' ... but apply the basic criteria ... is the instrument a short term, highly liquid and relatively low market risk ... if so, money market

Answer 2

Treasury bills, if purchased for investment, are neither common or preferred stock. Stock represents an ownership in a company.

Answer 3

I often end up posting the same question on other sites

Answer 4

Never thought about that too much

Answer 5

thank you for the answers, very much appreciated