Question

What is meant by 'allocative function' performed by financial market?

Answer 1

An important function of the financial market is known as the 'allocative function'. A financial. market acts as a link between the savers and the investors. It provides a platform for the. mobilisation of savings from the households to the investors.

Answer 2

'Allocative function' performed by financial market

Explanation:

Financial market is a system through which buyers and sellers trade in financial securities such as shares, debentures, bond, stock , currencies etc. one of it's major functions is Allocation of funds. the financial market helps in allocation and mobilization of funds. it connects the investors who are willing to invests their surplus funds with various companies and hence help them in allocation of funds.

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Function performed by financial market

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