Thu. Apr 3rd, 2025

    Tag: Financial Market

    A financial market is a marketplace where buyers and sellers engage in the trading of financial assets, such as stocks, bonds, currencies, and derivatives. It facilitates the transfer of capital and risk and enables the allocation of resources by determining prices for these assets based on supply and demand dynamics. Financial markets can be categorized into several types, including capital markets (where long-term securities are traded), money markets (for short-term debt instruments), foreign exchange markets (for currency trading), and derivatives markets (for contracts based on the value of underlying assets). These markets play a critical role in the economy by providing liquidity, enabling price discovery, and promoting the efficient allocation of capital.