A financial market is a marketplace where buyers and sellers engage in the trading of financial assets such as stocks, bonds, currencies, and derivatives.
Thank you for reading this post, don't forget to subscribe!Also, the markets for buying and selling of financial assets are called financial market.
- These markets facilitate the transfer of funds from savers (investors) to borrowers (businesses, governments, or individuals), helping allocate capital efficiently in the economy.
Functions of Financial markets:
- Trading of financial assets
- Price discovery of securities
- Transformation of saving into investment
- Satisfy financing need
Types of Financial markets:
- Primary Markets and Secondary Markets
- Money Markets and Capital Markets
- Spot Markets and Futures Markets
- National and International Markets
- Organized Stock Exchanges and Over-the-Counter (OTC) Market