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Financial Markets And Their Roles Essay

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Financial market
Financial Markets and Their Roles
A financial market is any marketplace that serves as an avenue for the buyers and the sellers to be involved in the trade of assets such as equities, bonds, currencies and derivatives. These markets are typically defined by having transparent pricing, basic regulations on trading, costs and fees, and market forces determining the prices of securities that trade.
Financial Market Structure
In economic parlance, it is a system which allows people to easily buy and sell financial securities, commodities, and other items of value at low transaction costs and at prices that reflect the efficient market hypothesis.
Financial markets gives chance to raise capital, the transfer of risk, and makes international trade possible.
Capital Markets
A capital market is where people or corporations trade financial securities in order to facilitate accumulation of funds. This allows governments and institutions to finance its operations and its own long-term investments.
‘Capital markets provide a wide range of products and services that are related to financial investments. Capital markets include the stock market, commodities exchanges, the bond market, and just about any physical or virtual service or intermediary where debt and equity securities can be bought or sold. Their primary purpose is to raise funds and channel investors’ money to areas where there is a deficit or need for investment. They play a vital role as intermediaries

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