what is financial market?
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Financial markets perform the essential functions channeling funds from economic players that have saved surplus funds to those that have a shortage of funds.
At any point in the time in an economy there are individual or organization with excess amount of funds and others with a lack of funds they need for example to consume to invest.
- exchange between this two group of agent is sattled in financial markets
- the first group is commonly referred to as landers the second group is commonly referred to as the borrowers of funds
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financial market is a market in which people trade financial securities and derivatives at low transaction costs. Some of the securities include stocks and bonds, raw materials and precious metals, which are known in the financial markets as commodities.
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