Financial market is a market for creation and exchange of financial assets. It helps to link the savers
with the investors and directs available funds into their most productive investment opportunity. It also
facilitates easy purchase and sale of financial assets through the stock exchange. The stock exchange not
only facilitate buying and selling of existing securities but also educates public about how their
investment in the financial market can yield good return.
a) Explain briefly two functions performed by the financial market in the above case.
b) Explain two more functions of the stock exchange, other than those stated in the above case.
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