Market And Instruments.Financial markets are traditionally segmented into money markets and capital markets. Money market instruments include short-term, marketable, liquid, low-risk debt securities. Money market instruments sometimes are called cash equivalents, or just cash for short. Capital markets, in contrast, include longer term and riskier securities Securities in the capital market are much more diverse than those found within the money market. The money market is a subsector of the fixed-income market. It consists of very short term debt securities that usually are highly marketable. U.S. Treasury bills are the most marketable of all money market instruments. A certificate of deposit, or CD, is a time deposit with a bank. Commercial paper is considered to be a fairly safe asset, because a firms condition presumably can be monitored and predicted over a term as short as 1 month. Bankers Acceptances is An order to a bank by a customer to pay x money on a future date. Eurodollars is dollar-denominated time deposits in banks outside the U.S. (not just Europe). Repos and Reverses is Short-term loan backed by government securities (and more). Fed Funds is very short-term loans between banks. Common stock is an ownership share in a corporation and limited liability. Preferred stock usually pays fixed dividends for the life of the firm and Perpetuity.