Financial markets are essential platforms where various financial instruments are traded between buyers and sellers. These instruments include stocks, bonds, currencies, commodities, and derivatives. The primary purpose of financial markets is to facilitate the flow of capital from those who have it (investors) to those who need it (companies, governments). There are different types of financial markets, such as capital markets for long-term financing, money markets for short-term loans, foreign exchange markets for currency trading, commodities markets for physical goods, and derivatives markets for contracts based on future asset values. The functions of financial markets include capital raising, price discovery through market forces, risk management through derivatives, liquidity for easy buying and selling, and contributing to economic growth by providing capital for businesses and fostering economic activity and job creation.
- Enseignat-bbb: Fatima MOUZIANE