Financial Markets

Financial markets refer to platforms or systems where financial instruments, such as stocks, bonds, currencies, and derivatives, are bought and sold. These markets facilitate the exchange of capital and financial assets, allowing entities like businesses, governments, and individuals to raise funds, invest, and manage risks. Financial markets can be categorized into primary markets, where new securities are issued, and secondary markets, where existing securities are traded among investors. They play a crucial role in the economy by providing liquidity, enabling price discovery, and allowing for the allocation of resources. Key types of financial markets include stock markets, bond markets, foreign exchange markets, and commodity markets.