Thu. Apr 3rd, 2025

    Category: Financial Markets

    Financial markets refer to platforms and systems where individuals, institutions, and governments can buy, sell, or trade financial instruments such as stocks, bonds, currencies, commodities, and derivatives. These markets facilitate the allocation of capital and liquidity, allowing investors to access and manage their investments while enabling companies and governments to raise funds for various purposes. Financial markets can be categorized into primary markets, where new securities are issued, and secondary markets, where existing securities are traded among investors. They are essential for economic stability and growth, providing price discovery, risk management, and access to financing. Major types of financial markets include stock markets, bond markets, foreign exchange markets, and money markets, each serving distinct functions in the flow of capital and investment opportunities within the economy.