What is Financial Market ? (Meaning, Characteristics and Types)

What is Financial Market ? 

(Meaning, Characteristics and Types)

What is Financial Market ? 

Meaning of  Financial Market:- 

financial market is a platform or system where buyers and sellers trade financial securities. such as stock bonds, currencies etc. it plays a vital role in the economy by facilitating the flow of saving into investment, price determination and providing a mechanism for selling financial assets.

Characteristics are features of financial market :-

1. Platform for buying and selling of securities. 

2. Facilitate the exchange of financial instruments and securities.

3. Facilitate trading of foreign exchange. 

4. Transparency. 

5. Liquidity. 

6. Risk management. 

Types of financial market :-

Financial market are two types. 

1. Money market. Related to short term funds, maturity period up to 1 year.

2. Capital market :- related to long term funds, maturity period more than one year.

There are two types of capital market. 

a) primary market b) Secondary Market 

(Note :- in another article we provide detail about money market and capital market.)

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